Benefits of ELSS

Save Tax upto 46,350*

Grow Wealth

Live your dreams

Only 3 Years Lock-in

How does it compare with other tax saving options under Section 80C?

ELSS has the lowest lock-in period of three years as compared to other options which have a minimum lock of 5 years.

  PPF NSC Bank FD ULIP ELSS
Lock-in 15 Years 5 Years 5 Years 5 Years 3 Years
Minimum Investment 500 100 Variable Variable 500
Returns% 7.6% p.a. 7.6% p.a. 7.00% to 7.50% p.a. Market Linked Market Linked
Tax on Exit Tax Free Taxable Taxable Tax Free Tax Free

PPF - Public Provident Fund, NSC - National Savings Certificate, FD - Fixed Deposit, ULIP - Unit Linked Insurance Plan. The above table is for illustration purpose only. Unlike PPF, NSC Bank FD, investment in mutual funds are subject to market risks, hence, the performances may not be strictly comparable. PPF rate is effective from 1st January, 2018, Ministry of Finance (Govt. of india); NSC rate is effective 1st January 2018; Bank FD rate is SBI’s Term Deposits Rate as on 1st July 2017. Interest on PPF is tax-free, interest on NSC and Bank FD is taxable. Dividend and Long term capital gains on ELSS schemes are tax free for investors.

*As per the present tax laws, eligible investors (individual/ HUF) are entitled to deduction from their gross total income, of the amount invested in equity linked saving scheme (ELSS) upto 1,50,000/- (along with other prescribed investments) under Section 80C of the Income Tax Act, 1961. Tax savings of 46,350/- shown above is calculated for the highest income tax slab. Additionally, long term capital gain tax is exempt on equity oriented funds. Tax benefits are subject to the provisions of the Income Tax Act, 1961 and are subject to amendments, from time to time. ELSS has the shortest lock-in period of 3 years, as compared to other tax saving instruments which have a minimum lock-in of 5 years.

This webpage has been prepared by DHFL Pramerica Asset Managers Private Limited (erstwhile Pramerica Asset Managers Private Limited) (the AMC) on the basis of publicly available information, internally developed data and other third party sources believed to be reliable. However, the AMC cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. This document does not take into account individual investor’s objectives, needs or circumstances or the suitability of financial products described herein. Hence, each investor is advised to consult his or her own professional investment/ tax advisor/ consultant for advice in this regard. These materials are not intended for distribution to or use by any person in any jurisdiction where such distribution would be country to local law or regulation.