What is Taxsaver SIP?

A Taxsaver SIP is a systematic investment plan in ELSS (Equity Linked Savings Scheme) mutual funds that allows you to save tax under Section 80C while investing in the stock market. It’s one of the smartest and most efficient ways to grow wealth and reduce your taxable income simultaneously.

You can invest as little as ₹500 per month and enjoy the dual benefit of market returns and tax deduction up to ₹1.5 lakh per year.

  How Does Taxsaver SIP Work?

• ELSS Funds: These funds primarily invest in equity and equity-related instruments.
• Lock-in period: These funds come with a lock-in period of 3 years, which is the lowest among all tax-saving options under Section 80C.
• SIP Investment: A SIP allows you to invest a fixed amount monthly, building discipline and rupee cost averaging.
• Example: If you invest ₹10,000 per month in a Taxsaver SIP:
  • You invest ₹1,20,000 in a year
  • You can claim this entire amount as a deduction under Section 80C
  • Each SIP installment is locked in for 3 years from its date of investment