ELSS is Equity Linked Saving Scheme which is typically tax-saving mutual funds. In terms of structure, and functioning, an ELSS is exactly like an equity-oriented mutual fund scheme. However, unlike a typical diversified or multi-cap fund, it provides tax benefits under section 80C of the Income Tax Act. ELSS funds have a lock-in period of 3 years. Suppose if you invest a particular amount on September 1, 2019, then the amount can be redeemed on September 1, 2022. Also, investing in ELSS opens up the possibility of earning superior returns as compared to other tax-saving instruments like fixed deposits and government small savings schemes. I have named few of the best ELSS mutual funds below: SBI Tax Advantage Fund – Series II – GrowthELSS Kotak Tax Saver Scheme – Direct Plan – GrowthELSS Axis Long Term Equity Fund – GrowthELSS Invesco India Tax Plan Tata India Tax Savings Fund Apart from saving taxes, investing in ELSS Fund can be a good diversification to your portfolio. An ELSS fund can provide you an impressive return ranging from 15-18%. Note: These are my personal views and not professional advice in any regard.