---
title: Can mutual fund investments help in saving income tax?
description: "Yes. Investment done in Equity Linked Savings Scheme (ELSS) funds qualify for tax deductions up to ₹1.5 lakh under Section 80C of Income Tax Act. ELSS funds are equity-oriented mutual funds with a 3-year lock-in period. This benefit is applicable…"
url: "https://arafinserv.com/fa/taxation-and-financial-planning/can-mutual-fund-investments-help-in-saving-income-tax/"
updated: "2025-11-20"
category: Taxation and Financial Planning
---

# Can mutual fund investments help in saving income tax?

Yes. Investment done in Equity Linked Savings Scheme (ELSS) funds qualify for tax deductions up to ₹1.5 lakh under Section 80C of Income Tax Act. ELSS funds are equity-oriented mutual funds with a 3-year lock-in period. This benefit is applicable if you choose the old tax regime only.