Parag Parikh ELSS Tax Saver Fund

Parag Parikh Tax Saver Fund Direct Growth is a mutual fund scheme offered by Parag Parikh Financial Advisory Services (PPFAS). With at least 80% of its assets invested in the Indian equity market, it is categorised as an equity-linked savings scheme (ELSS) that gives you tax benefits under Section 80C of the Income Tax Act, 1961. The tax-saver fund is also open-ended, meaning you can invest in it at any time. However, it has a lock-in period of 3 years.

Parag Parikh Tax Saver Fund Direct Growth aims to offer investors the benefit of capital appreciation over the long term by investing predominantly in equity and related assets. It follows the principles of value investing and intends to generate returns by identifying and investing in undervalued stocks.

Since this is a tax saver fund, it may be a suitable option for you if you want to benefit from tax savings while simultaneously earning market-linked returns. The amount you invest in this mutual fund is deductible from your total income up to Rs. 1.5 lakh (in the year of investment). However, please keep in mind that the fund has a lock-in period of 3 years, so it will only be ideal for you if you do not wish to redeem your investments within this period.

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