ELSS (Equity Linked Savings Scheme) and Equity Savings Funds are both types of mutual funds but differ in their investment objectives and tax treatment. ELSS funds primarily invest in equity and equity-related instruments and offer tax benefits under Section 80C of the Income Tax Act. Investments in ELSS funds qualify for a tax deduction of up to Rs. 1.5 lakh in a financial year. On the other hand, Equity Savings Funds invest in a mix of equity, arbitrage, and debt instruments with the aim of providing capital appreciation and downside protection. While ELSS funds have a mandatory lock-in period of three years, Equity Savings Funds typically do not have a lock-in period, offering more liquidity to investors.