ELSS (Equity Linked Saving Schemes) is nothing but a type of mutual funds which offers a tax rebate on returns earned during investment horizon, on the other hand, common mutual funds don’t such tax rebate. In this article, let us understand the major differences between ELSS vs mutual funds.
When it comes to mutual funds investment, there are two options whether one can invest in common mutual funds or in Equity linked Savings Schemes (ELSS) mutual funds. Although both ELSS and mutual funds are understood as a separate instrument yet ELSS is a branch of mutual funds, means mutual funds is a broad term whereas ELSS is a narrow term.