Money word, in plain English ← Back to all terms
ELSS
An equity mutual fund that qualifies for a tax deduction and locks your money for three years.
Example. Investing ₹1,50,000 in ELSS can reduce taxable income under the old regime.
ELSS stands for Equity Linked Savings Scheme. It invests mainly in shares and qualifies under Section 80C, with a three-year lock-in that is the shortest among the 80C options. Because it holds equity, the value can fall, so it suits a long horizon rather than money you need at the end of the lock-in. The deduction only helps under the old tax regime. Under the new regime there is no deduction, so an ELSS fund is just an equity fund with a lock-in.
One money lesson, in your inbox
A short, plain money lesson built from real news. Free. Unsubscribe anytime.
We will never spam you or sell your details.