ELSS: Smart way to save tax; here's how to pick a top performing one

Choose wisely but remember that returns are not guaranteed

Tax planning forms an indispensable part of one’s financial plans. Under Section 80C of the Income Tax Act 1961, you can claim deductions of upto Rs 1.5L and reduce your tax liability. So, to save on taxes, you just need to invest your money in investments eligible under 80C. Equity Linked Savings Scheme (ELSS) is eligible under section 80C.

Out of all these investments, ELSS tends to be the most popular and most efficient tax-saving instrument. 

How ELSS works

ELSS is a type of equity diversified fund, which invests majority of fund’s assets in equity shares of companies. The fund