This FundBox is specially designed to save tax. These tax saving schemes are called Equity Linked Saving Scheme (ELSS). It is best for those who are looking for Tax Saving. Many tax saving products are generally Debt oriented products. However, this is a core Equity FundBox. You can get deductions under 80 C of Income Tax Act maximum up to Rs. 1,50,000/-. However, there is no capping on investment amount. You can invest more than Rs. 1,50,000/.
That means you can get equity exposure and tax savings benefit at the same time. Asset Allocation in this FundBox is heavy towards Equity (around 98%) and contains small cash.
Being an Equity FundBox, it is recommended for long term. However, minimum lock-in period of investment is 3 years, which is the lowest amongst all tax saving products. It can be volatile at times and its returns depend on performance of share market. But, it can deliver higher returns over a long period of time.
Withdrawal within to 3 years is not allowed. You can withdraw money from this FundBox after 3 years. You can get money in your bank in 3 to 5 working days. But, you can consider investment for longer period.
There is no Exit load on ELSS schemes.