Plan Your Financial Future with ELSS or else…

If you are someone who is looking at Section 80C investments not just for tax-savings, but also for aligning your long-term investment goals such as retirement planning or buying a house ELSS could be you’re the right choice of investment for you.

Tax planning is not only about saving taxes but also an opportunity for wealth creation to achieve future financial goals. If you are genuinely looking capital appreciation then why not look at ELSS as an investment option where the returns have outperformed all the other investment options by a huge margin.

What are ELSS Funds?

ELSS or equity-linked savings schemes are tax saving mutual fund investments which invest the majority of their corpus in equity and equity-related instruments. ELSS is the only option under Section 80C which allows you to reap the benefits of the returns generated by the equity markets and at the same time offer complete tax shield at the lowest cost possible.

How Can ELSS Funds Benefit You?

Here are some of the important benefits that make ELSS, the best mutual funds to invest in tax saving:

ELSS Returns: Gives You the Opportunity for More

These funds primarily invest in equities and equity-related instruments. Though equity returns are extremely volatile in short-term, in the long run, equities can provide superior returns. An investor with a long-term investment horizon can expect annualized returns between 12 to 15%.

Lowest Lock-in period

As compared to other tax saving investment options under Section 80C of the Income Tax Act, 1961 ELSS have the lowest lock-in period of 3 years. In all the other alternatives the lock-in period varies from anywhere between 5 to 15 years with the restriction on withdrawals.

Tax Efficiency

From a taxation perspective, ELSS enjoys the triple tax advantage. The amount invested in ELSS up to the limit of Rs.1.5 lakh is exempt under Section 80C. ELSS funds are equity-oriented with dividend income and the long-term capital gains on them are exempt from tax thus making the maturity proceeds entirely tax-free for an investor.

Whereas, in case of tax-saving FDs, post office FDs and NSC the interest earned is taxable as per your income tax slab; investments in NPS and pension plans are taxed at the time of maturity. Insurance is also an EEE (exempt-exempt-exempt) investment but it is not a pure investment product. Though PPF enjoys the EEE benefit like ELSS, investments in PPF are extremely illiquid with the highest lock-in period.

Opportunity to Create Wealth with ELSS

Equity markets though volatile in the short run, historically, is the best asset class for wealth creation. ELSS funds are professionally managed which offer tax advantage and opportunity to participate in the equity markets.

Yes, the equity market has market risks but it doesn’t have the other risks like interest rate risk, reinvestment risk, liquidity risk, etc. Also, the investment allocation is conducted by fund managers who have adequate research and expertise to make the most out of the investment.

Hence, ELSS works as an easy investment option for multiple purposes and allows you to develop a healthy investment habit for a worry-free future.



Save up to Rs. 46,800 in taxes and earn returns up to 15.11% (past 3Y)!

If you desire to earn high returns & save taxes under Section 80C, then Finity has the right fund for your investment goal. Here is India’s #1 Ranked ELSS Fund for past 3Y returns.

“Mirae Asset Tax Saver Fund (Direct-Growth)”

Rated 5-star by Morningstar, CRISIL and Value Research

Return Capacity: High
Risk level: Average Risk
Category: Equity-ELSS (Open-ended)
Last 5 yr returns: 15.04% (as of September 26, 2019)
Min. SIP Amount: Rs. 500
Min. Lump-sum Amount: Rs. 5000

It is an equity-linked saving scheme with a 3 year lock-in period. By investing 72.52% is in large-cap stocks and just 25.76% in small & mid-cap stocks, this fund reduces risk due to equity exposure.

Mirae Asset Tax Saver Fund has yielded 15.04% CAGR (past 3Y), which is 6.71% more than the return of its benchmark – NIFTY 200 Total Return Index in the same 3Y duration (at 8.33%). Thus, generating long term capital appreciation from a diversified portfolio.

This fund provides a tax exemption of Rs.1.5 lakhs & tax-free returns on long term capital gains (LTCG) up to Rs. 1 lakh. Thus, it is a real winner when compared to other tax saving options such as EPF/ PPF (8%), Tax Saving FD (7-8%) and NPS (8%).

Toh der kis baat ki?

save tax

Secret to Save Tax: Revealed

It’s a known fact that a lot of personal investments are made every day to save tax. Various investment options are made available to save tax such as Public Provident Fund (PPF), Employees’ Provident Fund (EPF), Sukanya Samriddhi Yojana (SSY), to name a few. However, one that is more than often recommended and seems promising is Equity Linked Savings Schemes (ELSS). Let us take a closer look at this scheme and how it could help you.

What are ELSS Funds?

The only mutual fund eligible under Section 80C income tax deductions is Equity Linked Savings Schemes, commonly known as ELSS. It is an equity mutual fund and invests at least 80% of its total assets in equity and equity-related instruments. It is one of the best schemes that offer tax benefits.

What Makes ELSS More Promising for Saving Tax?

ELSS is arguably more preferable for people who wish to invest for tax-saving reasons. But there is more to them than meets the initial appearance. Let’s take a closer look:

1. Tax Benefits

  • Under the Section 80C of the Income Tax Act, ELSS funds are eligible for tax exemption up to a maximum of Rs. 1,50,000.
  • Tax-free returns on long term capital gains (LTCG) up to Rs. 1 lakh. ( 10% tax on returns > Rs. 1 lakh).

2. Better Returns

ELSS Funds also try and generate higher returns, anywhere between 15%-17%, because they leverage the benefit of equity markets. These are also safer for investors who want to invest in the stock market but not directly. So if you are wondering how to have equity exposure for your investments, it’s simple, opt for ELSS funds. However, remember to stay invested for a long period (at least 5 years) that’s the secret of getting high returns with equity funds.

3. Less Risky

ELSS Funds are safe for investors than investing directly in the stock market. This is made possible through fund managers who make sure to choose securities of companies which have a high growth prospect.

4. Lock-in Period

ProductsReturnsLock-in Period
ELSS Mutual Funds~15%-16%3 years
Bank Tax Saving FD7%-8%5 years
National Saving Certificate8%5 years
Insurance Policy4%-5%10 years
Public Provident Fund8%15 years

The above table clarifies that amongst the tax-saving products (under Section 80C), ELSS has the shortest lock-in period after which you can redeem or reinvest. However, since ELSS is equity-linked, investors who have long term goals and are willing to remain invested are likely to benefit the most from ELSS funds.

5. Flexibility

Most of the tax-saving instruments, such as tax-saving FDs for instance, accept only lump-sum deposits or one-time investment. However, ELSS funds give you the flexibility to choose One-time or Systematic Investment Plans. For investors who want to cultivate the habit of regular investments and are comfortable to deposit small amounts, ELSS funds are the best option. All that you need is an investment as low as Rs. 500 and you can start in SIPs of ELSS Funds.

Hence, conclusively ELSS is the right choice of investment if you want to save tax, along with rewarding benefits. So remember:

  • Have equity exposure for your investments
  • Save a substantial amount of salary from taxes
  • And get high returns for your long term financial goals, then

  It’s simple, opt for ELSS Funds!

Save tax with ELSS

Save Tax with ELSS

Worried during tax saving season? Here is the best solution for your tax saving woes which is ELSS!

Equity Linked Savings Scheme is one of the most popular tax saving investment options among other tax saving option under Sec 80C. You might be going through the last minute rush for tax saving around Jan-Feb each year. Most of the people get easily distracted by just looking at ‘tax saving’ tag on investments available in the market and invest in products which don’t add enough value.

We are here to tell you how to avoid the last minute rush along with earning great returns.
Below are a few advantages of ELSS mutual funds:

  • ELSS scheme has the shortest lock-in period among other investment options available under Sec 80C.
  • Most investment options available under SEC 80C are government-backed securities which usually have lower returns. Equity returns have been the most in the long run as compared to PPF, National Savings Certificate, post office schemes, etc.
  • Low charges as compared to insurance schemes where your premium gets diluted into agent commission, management charges and hence get less value for your investments.

Investments in ELSS are available through SIP. If you start a Systematic investment plan in an ELSS, then each of your investments will be locked in for 3 years from the respective investment date. An investment of Rs.12.5k per month can help you save tax up to Rs.15K for the year in which investments are made. This is the best way to avoid the last minute rush during the Jan-Feb month.


Tax benefits under Section 80C

The avoidance of taxes is the only intellectual pursuit that carries any reward.

— John Maynard Keynes

Quite often, we rush to make the least thought-through tax saving investment (the easiest like insurance plan & PPF being the most popular) with a short-term view to save on taxes.

Have you ever wondered if the same investment could also help you build wealth and take you closer to your financial goals? Probably not.

Here’s a cheat-sheet to help you choose the best tax-saving option to utilize your section 80C’s INR 1.5 Lakh tax-deductible limit.

Options available under the section 80C basket:

Tax Saving ProductsLock in periodExpected Returns
Equity Linked Saving Scheme (ELSS) Mutual Funds3 Years 12% - 15%
Public Provident Fund (PPF)15 Years 8.00%
National Savings Certificate5 Years 8.00%
5 Years Tax - Saving Fixed Deposit5 Years 7% - 7.5%
Insurance 10 - 15 Years 4.5 % - 5%


Sagar had started a SIP of INR 12,500/month (INR 1.5L annually) in an ELSS mutual fund – ICICI Prudential Long Term Equity Mutual Fund ten years back.

Over this period, he saved almost INR 4.5 lakhs in yearly taxes while his investment has grown to INR 32 Lakhs! A total gain of INR 21.5 Lakhs in ten years!

What happened there? It’s the power of equity, compounding and a wise tax-saving investment that made all the difference.

Equity as an asset class is by far the most dominant when it comes to building wealth. A classic display of the power of equity was the performance of TCS shares in the past week.

Shares of TCS gained the most this week. Since it got a clean-chit in the controversial racial-discrimination lawsuit filed in the U.S. Digital funds have been the biggest winners along with TCS.

TCS Share Price (22 Nov-30 Nov 2018)

Fund Name TCS (%)
Tata Digital India11.96%
Aditya Birla Sun Life Digital India fund11.70%
Axis Long Term Equity Fund8.44%
Axis Focused 25 Fund7.60%


Stock Market in last week



Tax saving

Top Tax-Saving Funds

Tax season is as certain as sunrise.
You’ll be better off having a hat at all times!

“Request for submission of proof of investments”: This is the email subject I woke up to this morning. I realized that many, just like me, are just so engrossed in the frenzy of daily tasks that we sometimes forget our essentials – like saving tax through 80C deductible investments.

It would be too redundant to list out a comparative table enlisting tax-saving options with their pros/cons and prove how ELSS mutual fund is the best tax-saving avenue in terms of the lowest lock-in period and highest return expectation.

However today, let’s cut to the chase and let me present our top ELSS mutual fund picks for the year 2019 which will not just help you save on taxes, but also help build you some decent wealth.

Fund NameFund Type3Y Returns5Y Returns
IDFC Tax AdvantageAggressive13.9%16.4%
L&T Tax AdvantageAggressive14.5%16.3%
Aditya Birla SL Tax Relief 96Low-Aggressive14.0%19.2%
ICICI Pru LT EquityModerate12.0%16.1%
DSP Tax SaverModerate13.7%17.6%

While these are our top picks for the year, you may choose to invest in the fund that matches your risk-appetite. Remember, the risk reduces as you move from small cap to midcap to large-cap allocations.(Source: Morningstar; data as on 17 Jan 2018; returns are annualized)

While ELSS is the only tax-saving investment option with a lock-in period as low as three years, the equity component has been the largest wealth creator when it comes to asset classes.

While equities work like a gold mine which takes years to mine, but at the end delivers a fortune, it only helps to see what has been moving this mine in the past week.

Nifty Data

Now that you know the necessity of ELSS go ahead and invest through Finity.