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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

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