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    Basic, Benefits, Types And Taxation

    What are ELSS Funds?

    Equity Linked Saving Scheme or ELSS is a type of mutual fund scheme that invests in equity markets and qualifies for tax savings under Section 80C of the Income Tax Act. Investments of up to Rs 1.5 lakhs done in ELSS Mutual Funds in a financial year are eligible for tax deduction u/s 80C. It translates into a tax saving of up to Rs 46,800 in a financial year. These funds also have the lock-in of just 3 years from the date of allotment of units, lowest amongst all the options available in Section 80C. Dual advantages of Tax-saving & potential for higher returns than traditional Tax-saving investments make ELSS a must have for every investor.

    What is a Mutual Fund? What is an Asset Management Company? What are the benefits of investing in Mutual Funds? Who should invest in Mutual Funds? Are there any risks involved in investing in Mutual Funds? What are the different types of Mutual funds? What are the different plans that Mutual Funds offer? Is there any minimum lock-in period for my units? What are Exchange Traded Funds (ETFs)? What are the factors that influence the performance of Mutual Funds? As a new investor how do I select a particular scheme? What exit load will I have to pay as on date? When will I be able to see my purchase/order details? Can I redeem my Mutual Fund investments anytime? What are different types of taxes levied on Mutual Funds? How are Capital Gains Taxes charged?