ELSS (Tax Saver) Funds

Equity schemes that carry a deduction under the old tax regime.

An Equity Linked Savings Scheme invests predominantly in equity and carries a statutory lock-in of three years from the date of each investment. Investments qualify for deduction under Section 80C of the Income Tax Act, subject to the overall limit and the regime chosen.

The lock-in applies instalment by instalment for SIPs, so each monthly contribution unlocks three years after its own date. Redemption before that date is not permitted under any circumstance.

Key features

• Predominantly equity portfolio with a three-year statutory lock-in
• Eligible for deduction under Section 80C in the old tax regime
• Available in both growth and income distribution options
• SIP instalments lock in individually from their own transaction date
• No premature exit facility, including in emergencies
• Gains taxed as long-term capital gains on redemption