Equity Linked Savings Scheme: Who Qualifies and What You Get
Learn how to use this tax-saving investment to reduce your taxable income while investing in the stock market.
An Equity Linked Savings Scheme is a type of mutual fund designed to help you reduce your taxable income through specific tax deductions.
Who it's for
This is for any investor who is looking for ways to save on their taxes through strategic investments.
What you get
By investing in these funds, you can claim a deduction under Section 80C of the tax code. This allows you to lower the amount of income you are taxed on, helping you keep more of your earnings.
What it costs you
Your money is invested in mutual funds, which means your returns are tied to the performance of the stock market. There is also a lock-in period, meaning you cannot withdraw your money for three years.
The catch to know
Because these funds are tied to the stock market, your returns are subject to market volatility. This means the value of your investment can go up or down based on market conditions.
How to apply
- Choose a mutual fund provider.
- Select an equity-linked savings scheme that fits your goals.
- Complete the investment process through the provider's platform or app.