An SIP is not a particular type of a mutual fund but only a way to invest in a mutual fund involving fixed and periodical investment installments (most popularly on a monthly basis). Equity Linked Savings Schemes (ELSS), with a lock-in period of 3 years, is the only mutual fund category that offers tax deduction benefits of up to ₹1.5 lakh under Section 80C of the I-T Act. Thus, an investor could enjoy 80C tax benefits through an SIP into an ELSS fund.