Invest Right to Earn

ELSS is Equity Link Saving Scheme. It is an equity mutual fund scheme. Any mutual fund which is registered with SEBI can launch an ELSS and almost every fund house has an ELSS scheme. It is mandatory for fund houses to keep 80 percent in equity at all times. Compared to all other investment options, ELSS has the shortest lock-in period, of three years. Bank fixed deposits have a five-year lock-in period, insurance has a longer lock-in period and PPF has 15 years’ lock-in period. When you buy an insurance product, you buy just one insurance product. In ELSS, you can diversify your Rs 1,50,000 in 10-15 mutual fund scheme. Secondly, you don’t have to commit yourself. When you buy an insurance product, you have to commit that you will contribute, say Rs 1 lakh per annum, for 5-20 years. In ELSS there is nothing like it. Suppose you lose your job and don’t have an income, then you don’t have to contribute. So, it provides better flexibility. The lock-in is the lowest among all the tax-fre...