Equity Linked Savings Scheme is a type of Mutual Fund which invests at least 80% of its assets in equity shares of companies of different sizes and across different industries. The amount invested in an ELSS fund can be reduced from your income up to Rs 1,50,000 as a deduction under section 80C of the tax law (along with other items). However, there is a lock-in of three years, ie you cannot redeem before three years.

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