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

20 Feb

The Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999

'Investors who were defrauded in the Torres Ponzi scam may receive about Rs 40 crore over the next six months.' The Mumbai Police’s Economic Offences Wing (EOW) has begun

Read More

18 Feb

Aravali safari park project

'The Haryana government’s ambitious 3,858 hectare Aravali safari park project spread across Gurugram and Nuh — which was one of the poll promises of the ruling Bharatiy

Read More

17 Feb

President’s rule function

'Recently,  four days after Manipur Chief Minister N. Biren Singh’s resignation, the Union government announced that President’s rule has been implemented in the v

Read More

India’s First Ai-Driven Magazine Generator

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