An ELSS, or equity linked savings scheme, is an equity fund with a three-year lock-in that qualifies for a tax deduction under the old tax regime.
An equity linked savings scheme keeps at least 80% of its money in shares. It differs from other equity funds in two ways.
After the lock-in, gains are taxed like those of any equity fund. Because every unit has been held for more than 12 months by then, they are long-term gains, taxed at 12.5% above ₹1.25 lakh a year.
An ELSS has no exit load, since units cannot be redeemed during the lock-in. Once the three years are over, units stay invested until you redeem or switch them.
ELSS and tax saving covers the deduction in detail.
Money put into an ELSS can be deducted from taxable income under the old tax regime, up to ₹1.5 lakh a year with other eligible items. Each purchase is locked for three years.
The tax on a mutual fund gain depends on what the fund holds and how long you held the units. The 2026-27 rates in one table, with what each group of funds covers.
Each fund page has its returns, risk, costs, managers and everything it holds.