ELSS Calculator

What is ELSS and how does it work?

ELSS (Equity Linked Savings Scheme) is a diversified equity mutual fund with a mandatory 3-year lock-in per SIP instalment. It's the only mutual fund eligible for Section 80C tax deduction (up to ₹1.5L/year, saving ₹46,800 at 30% bracket including cess). Returns are market-linked and subject to LTCG tax of 10% on gains above ₹1L per year.

ELSS vs PPF: which is better for 80C?

ELSS: 3-year lock-in (shortest among 80C options), market-linked returns (historically 12-15%), taxed at 10% LTCG above ₹1L. PPF: 15-year lock-in, guaranteed 7.1% return, completely tax-free on maturity. ELSS is better for: younger investors with long horizons, higher risk appetite, and need for flexibility. PPF is better for: risk-averse investors, guaranteed returns, and tax-free corpus.

How is the ELSS lock-in calculated for SIP?

Each SIP instalment has its own 3-year lock-in from its investment date. A January 2022 SIP unlocks in January 2025; February 2022 unlocks in February 2025, and so on. This means for a long-running SIP, most units are always available for redemption after 3 years — but you cannot redeem the entire corpus at once on the 3-year anniversary of starting the SIP.

What is the average return on ELSS funds?

Top ELSS funds (5-year CAGR, as of 2024): Quant Tax Plan ~28%, Mirae Asset Tax Saver ~17%, Axis Long Term Equity ~15%, HDFC Tax Saver ~16%, SBI Magnum Tax Gain ~18%. Category average (5-year): ~15-17% CAGR. Past performance doesn't guarantee future returns. ELSS returns are cyclical with the stock market — invest with a 5-10 year horizon for best results.