Motilal Oswal Asset Management Company Ltd. (MOAMC) is a public limited company incorporated under the Companies Act, 1956 on November 14, 2008, having its Registered Office at 10th Floor, Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai - 400025.
Motilal Oswal Asset Management Company Ltd. has been appointed as the Investment Manager to Motilal Oswal Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated May 21, 2009, executed between Motilal Oswal Trustee Company Ltd. and Motilal Oswal Asset Management Company Ltd.

5 Key reasons why ELSS could be preferred over other tax-saving options

The Income Tax Act, 1961 allows certain deduction which can be claimed to save tax at the time of filing Income Tax Returns by all classes of Taxpayers. Over the years, Equity-Linked Savings Scheme (ELSS) has emerged as a popular and beneficial tax-saving, investment option. Read 5 Key reasons to know what makes ELSS could be preferred over other tax-saving options;

Shorter lock-in period

A popular feature of ELSS is the benefit of having the shortest lock-in period, as compared with other Section 80C products. Bank Fixed Deposit (FD), National Savings Certificate (NSC) and Unit Linked Insurance Plan (ULIP) come with a lock-in of 5 years, while Public Provident Fund (PPF) has a lock-in of 15 years. On the other hand, ELSS comes with a comparatively shorter lock-in, of minimum 3 years. This lock-in feature of ELSS offers access to funds faster than any other tax-saving alternative. This benefits the investor to either re-invest the capital in the same or other scheme, making it a long-term investment option or utilize it as per requirement. 

Best of diversification and professional management

Since ELSS funds invest in the equity market, they help investors diversify their portfolio across stocks and lower the concentration risk. In addition, ELSS schemes are managed by professional fund managers who have the expertise and dedicated research teams tracking market developments.

The better habit of SIP

ELSS offers the advantage of investing in small amounts and over regular intervals, which helps the investor to maintain a routine, discipline and does not pinch the pocket; particularly why many investors prefer ELSS over any other tax saving option. Investors can make investments with amount as small as Rs. 500 through a facility called Systematic Investment Plan (SIP) where all the SIP investments are locked-in for a minimum of three years. SIP aims in motivating the investor to invest in equities without straining their financial budget. 

Higher possibility of beating inflation

Since ELSS invests in the equity market, it is better than the other tax-saving products, however, this may not always be the case and it depends on the varying market conditions yet; there is more possibility of beating the inflation.
(For details, please visit


Minimally impinged by market volatility

The equity-market, quite often, is considered an investment space for investors with a risk appetite comparatively higher than the debt-market investors. ELSS has shown less affect to market volatility, primarily because the lock-in period prevent the investors to give in to their whims of redeeming and the investors are forced to stay invested during short-term market volatility. 

Share this articles
  • FB Comments
  • Other Comments

Subscribe to our newsletter

connect with us :

Most Viewed
difference between investing and trading
5 key differences between investing and trading
5 key characteristics of a good investor
5 Keys To Evaluate Performance Of Your Mutual Funds
5 keys to evaluate performance of your Mutual Funds
Saving vs Investing, Investing
5 key differences between savings and investing
5 key reasons why you need financial planning for better tomorrow

Disclaimer:The information herein alone is not sufficient and should not be used for the development or implementation of an investment strategy and shall not constitute as an investment advice. MOAMC shall not be liable for any direct or indirect loss arising from the use of any information contained in this document. Readers shall be fully responsible for any decision taken on the basis of this document. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Connect with us
+91-22 40548002 | 8108622222

Mutual Fund investments are subject to market risks, read all scheme related documents carefully

KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc), you need not undergo the same process again when you approach another intermediary

Site best viewed in IE 9.0+, Mozila Firefox 4.0+ and Google Chrome at 1024 x 768 pixels resolution