Finance · 6 min read
SIP vs ELSS — Tax-Saving Investment Comparison
By TheCalcUniverse Editorial, Finance & Analytics Team ·
What Is ELSS?
ELSS (Equity Linked Savings Scheme) is a type of mutual fund that offers tax deductions under Section 80C of the Income Tax Act, up to ₹1.5 lakhs per year. It has the shortest lock-in period among 80C investments (3 years). ELSS funds invest primarily in equities, offering potential for higher returns than PPF or tax-saving FDs.
| Feature | ELSS SIP | PPF | Tax-Saving FD | NPS |
|---|---|---|---|---|
| Lock-in | 3 years | 15 years | 5 years | Till 60 |
| Returns | 10-14% | 7-8% | 6-7% | 8-12% |
| Tax on returns | LTCG over ₹1L | Tax-free | Taxable | Partially taxable |
| SIP available | Yes | Monthly | No | Yes |
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