Sign In
Learn bits
Economy
Pradeep Kumar

15/03/21 11:08 AM IST

Equity-linked savings schemes (ELSS)

In news

Equity-linked savings schemes (ELSS) help you save tax so as FD's

Comparison ELSS and FD
  • Tax-saving FDs from the post office and banks score high in terms of capital protection, especially when compared with market-linked investment products such as ELSS.
  • Post-office term deposits come with a sovereign guarantee from the Government of India, and deposits in banks that are listed as scheduled banks by the RBI, are insured up to ₹5 lakh under the DICGC, an RBI subsidiary.
  • Tax-saver FDs pay a fixed rate of interest till the end of the deposit’s tenure, irrespective of any changes in the card rates during the interim period.
  • ELSS funds depend on the performance of their portfolio constituents
Equity-linked savings schemes
  • Equity Linked Saving Scheme or ELSS is a type of mutual fund scheme that primarily invests in the stock market or Equity.
  • Investments of up to 1.5 Lac done in ELSS Mutual Funds are eligible for tax deduction under section 80C of the Income Tax Act.
  • The advantage ELSS has over other tax Saving instruments is the shortest lock-in period of 3 years.
Source: The Hindu

More Related Current Affairs View All

17 Sep

Reasons Behind the heavy rain in Uttarakhand, Himachal

'Dehradun and several other districts in Uttarakhand have experienced very heavy rainfall over the past few days, triggering landslides in multiple areas and causing rivers to swel

Read More

08 Sep

Rajasthan’s coaching centre Bill

'The Rajasthan Coaching Centres (Control and Regulation) Bill, 2025, is a significant piece of legislation passed by the Rajasthan Assembly to regulate and oversee the state's burg

Read More

28 Aug

IADT-1

'Recently, the Indian Space Research Organisation (ISRO) successfully carried out its first Integrated Air Drop Test (IADT-1), a crucial milestone in the preparation for the countr

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps