Equity-linked savings schemes (ELSS) are staring at an uncertain future with the government pushing for the new income tax regime, which offers no tax deduction or incentive for investing in mutual funds (MFs).
Beyond tax-saving benefits, fund houses highlight ELSS’ better return generation potential due to the compulsory three-year lock-in. Data, however, does not validate this claim, making ELSS a potential hard sell if the tax advantage is taken away.
