What is an ELSS (Tax Saver) Mutual Fund?

ELSS stands for “Equity Linked Savings Scheme”. These are mutual funds that invest at least 80 per cent of their assets in equity and equity-related instruments. Investments in an ELSS qualify for tax deductions under Section 80C of the Income Tax Act within the overall limit of ₹1.5 lakh. The amount you invest in ELSS can be deducted from your taxable income, which helps you lower the amount of income tax you are liable to pay.