Mutual funds are diversified investment products. They don’t only invest in stocks. They diversify their funds across various investment products to ensure diversification over the funds, as classified by the SEBI. Mutual funds invest in Stocks, BONDS, G-sec, floating rate instruments, Debt AND Money Market instruments such as Commercial papers and T-bills. Mainly, mutual funds are classified into five different schemes with different investment characteristics, such as,1)Equity Schemes2) Debt Schemes3) Hybrid Schemes3) Hybrid Schemes4) Solution Oriented Schemes5) Other SchemesThese five schemes are again divided into different sub-categories based on the categorisation and rationalisation of SEBI.Types of Mutual FundsAs per SEBI Categorization and Rationalization, Mutual funds are classified into different types, as mentioned below.Equity FundsEquity Schemes invest the majority of the funds in Equity.

The long-term capital gains exceeding Rs 1.25 lakh a year on equity-oriented funds are taxable at 12.5%, with no indexation benefit. This means the ELSS investors should now account for LTCG tax before redeeming their investments. If you are worried that a substantial part of your future gains will go into paying taxes, you need not worry. Despite the tax burden on LTCG, ELSS is still one of the best wealth accumulators in the long run.ELSS Still the Best Option for Retail InvestorsFor retail investors (individual investors), ELSS is an excellent investment product for saving taxes and has the potential to offer double the inflation-beating returns over time. ELSS is a tax-saving mutual fund that qualifies for the Section 80C tax deduction up to Rs 1.5 lakh per annum under the Income Tax Act, 1961.

Tax saving is crucial to every individual’s financial planning, especially in India, where most people's tax-saving investment options can significantly reduce their taxable income in a financial year. These investments not only help save taxes but also help create wealth over time. The various tax-saving instruments available stand out as a popular investment choice.Understanding how ELSS compares to other tax-saving options in section 80c, like PPF, NSC, Tax-saving Fixed Deposits, NPS, and SCSS, is mandatory for making an informed investment decision based on risk appetite and financial goals.What Are ELSS Funds?ELSS funds are a category of mutual funds with an 80% equity exposure that primarily invests in equities and is eligible for tax benefits under Section 80C of the Income Tax Act.ELSS funds have a lock-in period of 3 years, the shortest among tax-saving instruments in section 80c. They allow investors to invest in equities while offering tax savings.1)   Eligible for deductions under Section 80C, up to ₹1.5 lakh per year.2)   ELSS are coming up with a mandatory lock-in of 3 years.3)   The returns generated from ELSS funds are subject to market fluctuations, which means they can be higher than other fixed-income tax-saving instruments but with higher risk due to 80% equity exposure.4)   After lock-in ends, investors can redeem 100% of units anytime, but the initial 3-year period restricts liquidity.Historical Performance of ELSSHistorical data from the past decade shows that ELSS funds have provided an average return of 12-15% annually, making them one of the most attractive options for long-term tax-saving investors.Other Tax Saving InstrumentsPublic Provident Fund (PPF):PPF is a totally government-backed financial instrument, is totally low-risk, and offers tax-free returns to investors.The PPF has a mandatory lock-in period of 15 years, after which partial withdrawal is allowed only after 6 years.Investing in PPF can claim tax deductions of up to ₹1.5 lakh per annum under Section 80C in a financial year. Interest earned from PPF is 100% exempted from tax.At Present, the interest rate for the PPF stands around 7.1% per annum.National Savings Certificate (NSC):NSC is a fixed-income instrument that offers a guaranteed return to investors.NSC is coming up with a mandatory Lock-In Period of 5 years.Tax deductions of up to ₹1.5 lakh under Section 80C are allowed in a financial year.

Unlisted shares are a type of asset class that are equity shares being issued by companies which are not listed on public stock exchanges. These unlisted shares are typically held privately by the promoters, institutions, VCs, and not trading on exchanges like NSE, BSE.Investing in unlisted shares offers unique opportunities and challenges to the investors, making it essential to understand their characteristics, benefits, and the processes involved in buying and selling them.​What Are Unlisted Shares?Unlisted shares refer to the shares of a company that are trading without being listed on any stock exchange, which means they do not have a formal marketplace or exchange where buyers and sellers can easily exchange them.These unlisted shares, which belong to the private companies that are not publicly listed, have been under the process of being listed. These shares are typically less liquid and less transparent compared to listed shares.Types of Unlisted Financial InstrumentsUnlisted Shares:Unlisted shares are equity shares in a company that is not listed on any stock exchanges.These unlisted shares are privately held by promoters and often available to institutional investors, private equity firms, or retailers through over-the-counter transactions between buyers and sellers.GSEC:Government securities are debt instruments offered by the government of India to raise funds for their working capital.These government securities are coming with low risk as well as low interest rate since they are backed by the government's credit.Examples: Treasury bills, government bonds.Convertible Securities:Convertible securities are a hybrid financial product that can be converted into common stocks of the company.Example: Convertible bonds allow the holder to convert the bond into a predetermined number of shares of the issuing company's stock.Preferential Shares:Preferential shares are a different type of asset class of shares that give holders priority over common shareholders in terms of dividends and during liquidation. However, they do not carry voting rights.ESOP:An ESOP is a kind of stock that allows employees to become partial owners of the company where they work for by acquiring shares apart from salary.These were used by the companies to motivate their employees and align their interests with the company's performance.Swaps: Swaps are financial contracts where two parties agree to exchange cash flows or other financial instruments over a specified period.Common swaps include interest rate swaps, (exchange of fixed interest payments for variable ones), and currency swaps (exchange of cash flows in different currencies).Forwards:Forward contracts are financial agreements between two parties to buy or sell an asset at a predetermined future date for a price agreed upon today.These contracts are customized and traded over-the-counter (OTC), unlike futures contracts, which are standardized and traded on exchanges.Debentures:Debentures are unsecured debt instruments issued by companies starting from 10 Lakh, which are not listed on the exchange. These can be bought or sold in private placements or through direct negotiations via dealers.Bonds:Bonds are Similar to unlisted debentures; these bonds are issued by companies but do not trade on any public market.They are often offered to institutional investors or high-net-worth individuals.Preference Shares:These are shares that give holders preferential treatment in terms of dividends and repayment during liquidation, but they are not listed on any exchange.Convertible Securities:Convertible bonds or debentures issued by companies with an option to convert into their company’s equity shares.

Unlisted shares are the securities of the companies that are not listed on any stock exchange. These shares are being traded privately without the exchange involvement. Unlike public listed companies, these unlisted stocks do not adhere to SEBI regulations.What is Unlisted Equity Shares?Unlisted equity shares belong to the shares of a private company which are not traded on stock exchanges. These companies are privately held and willing to become a public limited company where their shares are not available for public trading.These shares are generally bought and sold through private transactions or through over-the-counter (OTC) markets from one demat account to another.Example of Unlisted Equity SharesUnlisted equity shares can be the shares of a startup or private company which has not yet gone public through an Initial Public Offering (IPO).Companies such as OYO, or Zomato (before their IPO) were examples of companies whose shares were unlisted at one point.Things to Understand in Unlisted SharesGrowth PotentialUnlisted shares are appealing because they often offer substantial growth potential in their early stage. These companies can grow at a rapid rate at the rate of 100-150% annually, and in many cases, they have outperformed listed companies by multiple times, generating more returns. Investors are drawn to these shares as they can expect higher returns over the period before the companies go public.RiskInvesting in unlisted shares always comes with inherent risks.

ELSS is a modern tax-saving instrument with equity exposure, whereas FDs are traditional tax-saving options without equity exposure risk. ELSS mutual funds and tax-saving FDs are two of the various investment options covered under Section 80C provisions that provide tax deductions. Under Section 80C, up to Rs.1.5 lakh a year can be eligible for deductions. Each of these options comes with its set of goals, risks, and returns.What are ELSS Funds?Among all mutual funds, the equity-linked savings scheme (ELSS) is the only one covered under Section 80C deductions. ELSS is a diversified equity mutual fund with 80% equity exposure that offers tax deductions of up to Rs.1.5 lakhs annually.Key features of ELSSDeductionsUnder Section 80C of the Income Tax Act, ELSS mutual funds offer tax deduction benefits, allowing deductions of up to ₹1.5 lakhs in a financial year.Lock-in PeriodELSS mutual funds have a mandatory lock-in period of three years from the date of investment, which is the shortest lock-in period.RisksELSS investments are subject to market risks as they primarily invest in equities. The returns are not fixed and can vary depending on market performance.LiquidityELSS offers liquidity after the lock-in period, allowing you to redeem your investment after three years.ReturnsELSS has the potential to offer higher returns compared to traditional fixed-income investments due to equity exposure in investments.What is Tax Saving Fixed Deposits?Investing in tax-saving fixed deposits with banks allows individuals and HUFs to claim a tax deduction of up to Rs.1,50,000 in a financial year.

Saving taxes is something that everyone would like to do. There are many investment schemes like Equity-Linked Saving Scheme, National Pension Scheme, Tax saving FDs, NSC, and PPF, which offer tax benefits under Section 80C. In this article, we have compared ELSS with NPS.Calculate monthly Pension & Tax Benefits through Cleartax NPS CalculatorEquity Linked Savings Scheme (ELSS)Equity-Linked Saving Scheme (ELSS), popularly known as ELSS, is a tax saving mutual fund where one can save up to Rs 1,50,000 in a financial year under Section 80C. It has a lock-in period of just three years, the shortest among all tax-saving investment options. Long-term capital gains of over Rs 1 lakh being taxed at the rate of 10%.National Pension Scheme (NPS)National Pension Scheme (NPS) is a government-backed scheme in which individuals invest during their earning years to get a pension upon retirement.

Equity Linked Savings Scheme or ELSS mutual funds are a great investment option for investors those who are looking for wealth generation, getting regular returns and saving taxes at the same time. These funds are excellent tax-saving investment options that you can opt for generating profits in the long run. To gain more insights about ELSS mutual funds and their various aspects, read the article below.What is an ELSS Mutual Fund?Equity-Linked Saving Scheme (ELSS), commonly referred to as the tax-saving funds, these funds particularly fall under the diversified category of mutual funds. While their maximum exposure (65%) is towards equity and equity-oriented securities, a part of the corpus is also invested in debt instruments.ELSS is covered under the Section 80C provisions and therefore, you can claim tax deductions of up to Rs 1,50,000 a year. This will help you save up to save Rs 46,800 on a financial year in taxes. These funds come with a mandatory lock-in period of three years, which is the shortest among all other 80C options.Best ELSS Mutual FundsThe table below shows the top-performing ELSS mutual funds based on the past five year returns:FUNDNAV5YR CAGRRISKEXIT LOADMin. Investment DSP Elss Tax Saver Fund - Direct Plan - GrowthELSS134.38818.29 %Very High Risk0%₹ 500Invest NowSBI Long Term Equity Fund - Direct Plan - GrowthELSS415.90123.86 %Very High Risk0%₹ 500Invest NowHDFC ELSS Tax Saver - Direct Plan - GrowthELSS1321.8222.04 %Very High Risk0%₹ 500Invest NowMotilal Oswal Long Term Equity Fund - Direct Plan - GrowthELSS46.917718.86 %Very High Risk0%₹ 500Invest NowParag Parikh ELSS Tax Saver Fund - Direct PlanELSS30.455123.69 %Very High Risk0%₹ 500Invest NowQuantum ELSS Tax Saver Fund - Direct Plan - Growth OptionELSS117.8119.3 %Very High Risk0%₹ 500Invest NowITI ELSS Tax Saver Fund - Direct Plan - GrowthELSS22.523917.44 %Very High Risk0%₹ 500Invest NowTaurus ELSS Tax Saver Fund - Direct Plan - GrowthELSS181.4316.88 %Very High Risk0%₹ 500Invest NowFranklin India ELSS Tax Saver Fund - Direct Plan - GrowthELSS1442.6220.24 %Very High Risk0%₹ 500Invest NowJM Tax Gain Fund - Direct Plan - GrowthELSS47.885219.49 %Very High Risk0%₹ 500Invest NowHSBC ELSS Tax saver Fund - Direct GrowthELSS123.49517.42 %Very High Risk0%₹ 5000Invest NowQuant Tax Plan - Direct Plan - GrowthELSS342.65129.71 %Very High Risk0%₹ 500Invest NowNIPPON INDIA ELSS TAX SAVER FUND - Direct Plan - GrowthELSS118.88417.95 %Very High Risk0%₹ 500Invest NowKotak ELSS Tax Saver Fund - Direct Plan - GrowthELSS115.56418.29 %Very High Risk0%₹ 500Invest NowNippon India Elss Tax Saver Fund - Direct Plan - Annual IDCW Plan- PayoutELSS21.266517.84 %Very High Risk0%₹ 500Invest NowBandhan Tax Advantage (ELSS) Fund-Growth-Direct PlanELSS152.54221.87 %Very High Risk0%₹ 500Invest NowBOI AXA Tax Advantage Fund - Direct Plan - GrowthELSS157.1620.09 %Very High Risk0%₹ 500Invest NowBaroda Bnp Paribas Elss Fund - Direct Plan GrowthELSS91.677116.4 %Very High Risk0%₹ 500Invest NowTata ELSS Tax Saver Fund- Direct Plan - Growth OptionELSS43.643717.39 %Very High Risk0%₹ 500Invest NowMahindra Manulife ELSS Kar Bachat Yojana - Direct - GrowthELSS28.740418.67 %Very High Risk0%₹ 500Invest NowFeatures of ELSS Mutual FundsHere are some of the most important features of ELSS mutual funds,These mutual fund schemes diversify their investments by purchasing equities across different sectors, themes and market caps.These ELSS mutual funds are having very less lock-in-period and generated higher historical returns as compared to all other 80C investments.At least 80% of the fund’s capital investments goes into equity and equity-related instruments, while the remaining amount goes into hybrid and debt instruments.They do not have a maximum tenure of investmentThe gains by these schemes are generated is treated as long-term capital gains (LTCG) and thus taxed at 12.5% Tax relief on the invested capital is mentioned under Section 80C of the Income Tax ActWho Should Invest in Best ELSS Mutual Funds?Any individual or HUF looking to save up to Rs 46,800 a year on taxes can consider investing in ELSS.

ELSS Stands for “Equity Linked Savings Scheme” which is a diversified equity-oriented scheme which predominantly invests majority of funds in the equities having mandatory lock-in period of 3 years from the date of purchase offering growth as well as tax deductions up to 1,50,000 under section 80C, while most of the investors prefer ELSS for the tax saving purposes.What is lock-in period in ELSSThe lock-in period in ELSS means the investor who purchased the ELSS funds cannot redeem their units until completing predetermined period of 3 years from the date of purchase. The redemption is based on the units invested. Mutual funds are of two types, namely, open-ended and close-ended. Close-ended mutual funds are always with a lock-in period, like ELSS these are the only open-ended mutual funds with 3 years of minimum lock-in period. The lock-in period is applicable for both lump sum investment and SIP plans.  Why lock-in period in ELSS is importantThe lock-in period is essential for both the investors as well as the mutual fund houses to maintain the benefits of investing in ELSS.

Who Is Custodian?A custodian is a person or organisation assigned to manage financial property for companies, individuals, or group organisations. Property includes funds, securities, documents, or even physical precious elements. The primary responsibility of custodians is to ensure proper care for the stated assets.An example would be a person investing in shares, where he owns the company’s shares but does not have shares in their possession. A bank or a financial institute acts as a custodian recipient.Types Of CustodianFinancial Custodian: This category includes banks and investment companies that manage securities and money.Document custodian: This person maintains custody of important documents such as contracts, legal suits, asset titles, and other certificates.Physical Assets custodian: these include maintaining precious objects such as gold, jewellery and art.Institutional custodian: This includes schools, colleges, hospitals, and other institutions, whose items and assets are the responsibility of guardians.Examples Of CustodiansBanks - Offer safe storage solutions, including cabinets to protect precious goods such as jewellery, cash and important documents.Investment Firms: manage and protect financial assets, including shares, bonds and mutual funds, on behalf of investors.Educational Institution: students monitor and maintain maintenance and security for records, administrative documents and institutional assets.Government Offices: Responsible for preserving and managing public records, legal documents and national assets to ensure compliance and accountability.Key TakeawaysCustodians are essential in protecting economic and physical assets by implementing advanced security measures to prevent theft, fraud and damage. They ensure effective real estate management by handling transactions, maintaining records and providing accurate financial monitoring.