What is an ELSS?
As the name of the scheme very clearly suggests, it is a savings scheme that's linked to equity. And these are the two most important facts to remember even after investing in an ELSS. A savings scheme must necessarily be for the long term, so it's of no use looking at short-term returns from an ELSS.
ELSS is a mutual fund similar to any diversified equity mutual fund that routes your investments into equity markets. However, it stands apart from a regular mutual fund in one major way. ELSS carries a tax benefit on the amount invested, and therefore you have to lock-in your investment in an ELSS for three years.
Who can buy?
Section 80C of the Income Tax Act provides tax benefits to a person who buys units of ELSS,
either in his own name or jointly.
Individuals, HUF
What is the minimum & maximum amount of investment?
Investments can be made through a systematic investment plan (SIP) or lump sum. When markets are volatile, SIP is a better way to invest, save tax and create wealth over a long term.
Minimum Amount of investment is Rs.500. There is no limit for maximum amount of investment; however the tax advantage is only up to Rs.1lakh.