Ask what else (ELSS) – for tax savings schemes (80CC)


One can look at “else” or “ELSS”, for various tax saving schemes.

Where ELSS stands for “Equity Linked Savings Scheme”. These are Mutual fund schemes, which qualifies towards 80CC tax saving investment and offers one of the best returns & liquidity in the market, compared to any other schemes available.

Whichever way one wants to look at, i.e. First, “what else” or options one has on tax saving schemes? and Second, “what ELSS”, or how good they are?

The analogy sounds great – “Ask what else (ELSS)”. I have borrowed this tag line (partial), from one of the AMC’s** recent marketing campaign & thought of writing this blog.

Under 80CC of income tax, government allows an individual to save tax on investments up-to INR 1.5lacs. Below is a simple comparison on various schemes available:

Investment Pre-Tax Returns Lock-in Period Tax Applicable
Insurance 0 – 6 % 5 years No Tax
NSC 8.00 % 5 to 10 years Interest - Taxable
PPF 8.00 % 15 years No Tax
5-year FD 7.50 % 5 years Interest – Taxable
ELSS 12 – 15 % 3 years Taxable at 10% (as per 2018-19 budget)
  • Above data as per ET wealth.
  • ELSS returns are market linked & based on historical average.


Therefore, on first parameter, i.e. “what Else”, one can see clearly that ELSS comes out as clear winner on all parameters, Best returns, Best Lock-in & Tax applicability.

And on second parameter “what ELSS”;

An ELSS is a diversified equity mutual fund scheme, which has most of the corpus invested in equities. Since it is an equity fund, returns from an ELSS fund reflect returns from the equity markets, and historically it has given the best returns compared with any other category.

But the crucial part, even though the lock-in is for 3 years, it’s recommended to stay parked for minimum 5 to 10 years or higher. Equity market has rewarded investors, who stay put for longer duration and not look at short-term gains or blips (market-fall), which comes in-between the holding period.

How to invest in ELSS funds?
At, we first help you open your online Mutual Funds account. Which involves a registration cum KYC process, as per SEBI/ NSE guideline. Post that, we help you shortlist the best available funds, based on your goals & requirement.

At, we are bunch of passionate & experienced professionals, who are trying to create & change the way, one looks at investments & its entire process. We have designed & built, a web & mobile platform, which offers solutions, that stands apart in its simplicity & “what a customer want” approach.

Disclaimer: Investment in securities, including mutual funds, variable annuities or variable life Insurance, is subject to market risks, including the potential loss of principle and fluctuation in value. Past performance does not guarantee future results. You should consider the Investment objectives, risks, charges and expenses of investment securities carefully before investing. Read the prospectus carefully before investing.

** Franklin Templeton AMC

Manoj Chahar
Founder & Storyteller at
Manoj is the founder of, with 15 years of corporate experience & expertise in financial markets. Manoj has corporate stints with Kotak Securities, IIFL group & Philips India. He holds an MBA (PGDM) degree from Symbiosis (SIMS) Pune.
His interests include birding & adventure activities.

Leave a Comment

Your email address will not be published. Required fields are marked *