This document compares the advantages and disadvantages of Equity Linked Savings Schemes (ELSS). ELSS offers tax benefits as investment up to Rs. 1.5 lacs is tax deductible under section 80C. However, there is a mandatory 3-year lock-in period. ELSS provides equity exposure with tax benefits but carries higher market risk due to minimum 80% investment in equities. It is more suitable for younger investors with higher risk tolerance, but not for investors nearing retirement who have lower risk tolerance and need liquidity.

1. ADVANTAGES
DISADVANTAGES
Fictional literature is
made from the
imagination.
Non-Fiction is
literature that is
based on fact.
Its purpose is to
entertain. You read
to enjoy.
It uses narrative
elements such as
theme, conflict,
characters, setting,
and resolution.
It uses text features
like the table of
contents, glossary,
index, labels, charts,
photos, and graphs.
Its purpose is to give
information. You read
to learn.
A N D
OF EQUITY LINKED SAVINGS SCHEME (ELSS)
It gives readers a
theme, message,
moral, or lesson.
It gives readers
information or
directions on how
to do something.
Investment upto Rs.
1.5 lacs is tax
deductible under
section 80C
3 years mandatory
lock-in.
Longer term
investment - better
return possiblity.
Offers equity
exposure with tax
benefits.
Minimum 80% in
equity - higher
market risk exposure.
Not liquid investment
Ideal for younger
investors with higher
risk tolerance
Not suitable to
investors nearing
retirement with low
risk tolerance