Is ELSS Still a Good Investment Without Tax Benefits?

Equity Linked Savings Schemes (ELSS) have been popular with investors for their potential high returns and tax deductions under Section 80C. However, the new tax regime has reduced these tax advantages, making investors question their worth.

Despite losing tax benefits, ELSS remains a viable option. They invest mainly in equities, which can deliver higher returns compared to other tax-saving instruments. Equities tend to outperform other assets over the long term, making ELSS attractive for wealth creation.

ELSS has a mandatory three-year lock-in period, the shortest among all tax-saving investments. This period encourages discipline, helping investors stay invested for the long term and benefit from compounding.

Additionally, ELSS offers flexibility. Investors can choose between lump-sum payments or systematic investment plans (SIPs), making it easier to manage investments according to financial goals.

While the new tax regime has lessened the appeal of ELSS from a tax-saving perspective, their potential for high returns and other advantages continue to make them a worthwhile investment for those looking to grow their wealth.