Archive · 27 Jan 2026
ELSS Relevance Under New Tax Regime
Equity Linked Savings Schemes (ELSS) are special investment plans that put most of their money into stocks.
They have a rule that you can't take your money out for three years.
Before, people could get tax breaks for investing in ELSS, but now, with the New Tax Regime, they can't.
Some people are wondering if ELSS is still a good idea.
The good news is that ELSS has made a lot of money over the years, even without the tax breaks.
It also helps people stay invested for a long time, which is good because it stops them from making quick, emotional decisions.
So, even though you can't get tax benefits anymore, ELSS is still a good way to grow your money over time.
ELSS investments are no longer eligible for tax deductions under the New Tax Regime.
ELSS funds have historically delivered strong returns, with a 14-16% CAGR over 3-10 years.
ELSS outperformed flexi-cap and large-cap funds over five- and ten-year periods.
The three-year lock-in period of ELSS helps investors avoid emotional decision-making.
Investors should consider ELSS for long-term wealth creation, regardless of tax benefits.
- Who
- Investors in Equity Linked Savings Schemes (ELSS)
- What
- Relevance of ELSS under the New Tax Regime
- When
- As of 9 January 2026
- Where
- India
- Why
- To understand if ELSS remains a viable investment option without tax benefits
- ELSS
- Equity Linked Savings Schemes
- Lock-in Period
- 3 years
- Section 80C
- Tax deduction under Old Tax Regime
- New Tax Regime
- No tax deductions for ELSS
- ELSS Returns (3 years)
- 15.97% CAGR
- ELSS Returns (5 years)
- 15.28% CAGR
- ELSS Returns (10 years)
- 14.15% CAGR
