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  1. Women and wealth: Building a secure future with ELSS

Women and wealth: Building a secure future with ELSS

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3 min read • Updated: February 22, 2024, 8:34 PM

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In pursuing a financially secure future, Equity Linked Savings Schemes (ELSS) provide an excellent opportunity for women to develop their wealth while saving on taxes. ELSS funds are similar to mutual funds but have the extra benefit of being eligible for tax deductions. Thus, they are a unique investing alternative for saving money while participating in the potential upside of equity markets.

How to build wealth with ELSS investment

What is an Equity Linked Savings Scheme?

Any Indian resident, including women, can invest in ELSS funds. Starting to invest in these is simple. There is no maximum investment limit.

Investments in ELSS can be deducted from taxable income under Section 80C of the Income Tax Act, with a threshold limit of ₹1.5 lakh every financial year. This benefit is only available to individuals who opt for the old tax regime.

The lock-in period for ELSS funds is three years, the shortest of any tax-saving investment option under Section 80C. After the lock-in period, investors can continue their investment or redeem the assets. Because of the short lock-in period, ELSS funds provide liquidity unlike other long-term savings options, such as the Public Provident Fund (PPF) or the National Savings Certificate (NSC).

What are the benefits of investing ELSS funds?

Apart from the monetary benefits, ELSS mutual funds provide investors with an exposure to stock markets. This may result in higher returns than typical tax-saving assets such as fixed deposits (FDs). Also, experienced fund managers manage ELSS funds, allocating capital across multiple equities and sectors to maximise returns. This is especially useful for women who are juggling careers and households. ELSS funds can help women with personal finances because they provide a well-managed investment that does not require continuous monitoring.

How do I invest in ELSS?

You can make a lump sum investment or take a more planned approach, such as a Systematic Investment Plan (SIP), which allows you to invest a certain amount on a monthly basis. This averages out the cost of investing and limits the risks associated with investing in stock markets.

While ELSS funds are vulnerable to market risks, they are also regulated entities that must follow the guidelines established by the Securities and Exchange Board of India (SEBI). These standards assure a certain level of security and transparency, providing additional protection for investors.


For women who want to achieve a solid financial future, ELSS funds combines wealth-building and tax savings. The tax benefit under Section 80C, combined with the potential for better returns through equity exposure, plus the flexibility of investment style and shorter lock-in period, make ELSS an appealing alternative for women. Understanding these funds can help women take control of their finances and steer their destiny toward wealth development and financial independence.

Invest with Upstox, if you are looking for an ELSS option to save taxes and grow your wealth through equity investments.