Multiple choice

Which of the following are not true for Equity Linked Savings Schemes?

  1. There is a lock-in period before investment can be withdrawn

  2. There are not specific restrictions on investment objectives for the fund managers

  3. These funds cannot invest in shares of listed companies

  4. Investors can claim an income tax benefit

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

ELSS funds invest in equities and can invest in shares of listed companies as their primary investment avenue. The other statements are incorrect: ELSS does have a lock-in period (3 years), fund managers follow specific investment mandates, and investors do get tax benefits under Section 80C.

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