Investment Duration: Consider investing in ELSS funds if you plan to keep your money invested for more than five years. The nature of ELSS funds, being linked to the stock market, benefits from a longer investment period to manage fluctuations in market conditions.
Returns: ELSS funds don't guarantee fixed returns since they depend on how well the underlying securities perform. However, if you're willing to invest for more than 5 years, ELSS has the potential to offer higher returns compared to other tax-saving options.
Lock-in Period: Once you invest in ELSS mutual funds, your money is locked in for three years. During this time, you cannot withdraw or sell your holdings. It's essential to be aware of this mandatory lock-in period before choosing ELSS as an investment option.
