6 things you must know about ELSS

Business Standard explains the concept of equity-linked saving schemes and how you can benefit from investing in these instruments

The equity-linked saving scheme (ELSS) is a category of mutual funds that the government created to encourage long-term equity investments. Through ELSS scheme, the government sought to improve equity participation by allowing tax-deductible investment in equity-based mutual funds. A tax deduction encourages the average citizen to invest a larger part of his savings in equities, and ELSS can benefit him in multiple ways. 

However, you should know a few important things before you invest. Here are the 6 things that you must know about ELSS:

1. What are ELSS funds?

ELSS funds are equity-oriented mutual funds that aim to invest