A Tax-Saving Mutual Fund which is also known as Equity Linked Savings Scheme (ELSS) that safeguards an investor from tax payment up to 1.5 lakhs under Section 80C. The investments lock-in period in ELSS ranges from 3 months to years. Tax Saving Mutual Fund are linked to equity so they are associated with high risks and low volatility. Mutual funds deal with the idea of a pool of funds from a group of investors but do not ensure a guarantee of profits. Unlike Tax Savings Fixed Deposit, where the investment risk is quite low, Tax Saving Mutual Funds are risky.
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