ELSS is Popular Avenue for Tax Saving

Equity linked saving schemes is the most popular avenue for tax saving. Every tax payer invests in ELSS or tax saving funds to save their taxes. In simple way tax saving funds is the pure equity based investment. ELSS or Tax saving funds gives high returns within 3 year lock-in periods. Any investment towards this fund up to Rs. 150,000/- is eligible for tax deduction under section 80c. The return received is not taxable so the main advantage of ELSS funds is to create wealth. ELSS allows high capital appreciation in a short period of time. Some of the best ELSS funds have provided 20% returns annually in the last five years. So the investment in ELSS can be done through one-time investments and Systematic Investment Plans (SIP).