Why ELSS Still Merits A Place

This is the last hurrah for tax savings through a medium that seems to have been dealt a body blow, thanks to the growing acceptance of the new tax regime in which it can play a limited role. Equity-linked savings schemes (ELSS) is a genre that is clearly relegated to the deep end of our mental pool till the year-end signals for tax savings hit our subconscious mind. Yet, despite the very lonely furrow it is currently ploughing, the latest numbers delivered by ELSS, on average, are quite impressive. Their marginalised status notwithstanding, investors need to do a full-scale re-think on their utility. The concept of ELSS packs an unputdownable medley—the shortest lock-in period (‘shortest’ vis-a-vis other competing tax-saving options), the potential of its all-equity portfolio, and the fact that it allows full exit after a mere three years. No other option—...