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Equity Linked Savings Funds or ELSS schemes provide tax benefits of up to Rs. 1.5 lakhs under Sec 80C of the Income Tax Act, 1961. They are pure equity funds, but they come with a lock-in period of 3 years. Such funds not only help investor to save tax, but also participate in equity markets.

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What are Equity Linked Savings Funds (ELSS) in mutual fund ?