​Equity-Linked Savings Schemes (ELSS) are diversified equity mutual funds that offer the dual benefit of wealth creation and tax savings. They are offered by Asset Management Companies (AMCs) in India and are suitable for investors seeking exposure to equity markets along with tax benefits.

Key features of ELSS mutual funds:

1. Eligible for tax deduction under Section 80C of the Income-tax Act, 1961, up to a limit of ₹1,50,000 per financial year.
2. Investments can be made through SIP (Systematic Investment Plan) or One-time lump sum modes.
3. ELSS funds have a mandatory 3-year lock-in period from the date of each investment. During this time, units cannot be redeemed or transferred.
4. Returns are subject to Long-Term Capital Gains (LTCG) tax rules if gains exceed the annual exemption limit.

ELSS schemes are a popular choice for tax-saving investors who are comfortable with equity market exposure and a medium-term investment horizon.

Read more on what is an ELSS Fund and how does it work.​