As March approaches, we start running around to make investments and take advantage of the Sec 80C. Eventually, we save taxes but miss out on the best investment opportunity that was available. Why not make best use of time by evaluating the investment avenues now and also start making investments ? This will not only ensure tax benefits but higher returns on our investments.
ELSS is the the growing favourite avenue for 80 C investments considering the following parameters
1. Liquidity – Shortest lock in of 3 years as compared to 15 Years in PPF, 5 Years in FD (80 C FDs), Even longer in life insurance policies (depending on term)
2. ROI – Being a mutual fund, we can expect higher returns as compared to traditional avenues. Also, no allocation charges as in case of ULIPs, means our entire money is invested.
3. No Commitment – Once invested in an ELSS, you may choose some other fund or scheme next year ( as against life insurance, once invested, same commitment every year)
4. Tax free returns – The dividend and capital gains earned are completely tax free ( as against the interest earned on FDs).
The best part is, keeping invested in ELSS for a long term (say 15-20 Years) can not only save taxes but would prove to be a wealth creator. For details, please feel free to contact us at

Disclaimer : Mutual Fund Investments are subject to market risk. Readers are requested to use their own judgement and consult their financial advisor before making investment decisions.


  1. Yes, this may be true this year, when the new tax code is applied, it may not help. Capital gain will be taxable.

    1. Dear Jitesh,

      Thanks for your valuable comments.

      However, if you compare across asset classes, the capital gain would be applicable to other classes including life insurance, PPF and FDs.

      So, all in all ELSS would still stand out as a better investment option. Of course, personal preferences could differ.
      But those young could definitely look at this from the point of view of wealth creation in the long term.

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