What is the Full form of ELSS? About ELSS
ELSS Full Form – Equity Link Saving Scheme or ELSS is a mutual fund scheme to save tax and grow a customer’s wealth through investments in equities (market stocks). It is a diversified equity scheme which has a lock-in period of 3 years. It means that you get only 3 years to enjoy this scheme. After the particular time period, the scheme is closed for the particular person. The tax benefits of this scheme are listed under the Section 80C of the Income Tax Act of 1961. One of the many things listed in the Section 80C is that the tax deduction is done only on investments of upto 1.5 lakhs. As the name suggests, Equity Link Saving Scheme is a Saving Scheme, meaning that investors in this mutual fund scheme get tax-free returns, which is a feature of a Savings Account. ELSS is regulated by Securities and Exchange Board of India or SEBI. SEBI has made many regulations for ELSS. One of them was that ELSS must have at least 80% of total assets invested in the stock market.