Is ELSS a good option to maximise tax savings?

I want to maximise the tax savings available from the beginning of this financial year. Is ELSS still a good option to consider? My earlier ELSS lock-in just got over, what should I do with it?
-Tony Singh, Gurgaon

As you are not a first time ELSS investor, you will know that ELSS is among the better options within the available tax saving options. When you invest in these mutual funds, the investment qualifies for tax deduction of up to `1.5 lakh in a financial year under Section 80C of the Income Tax Act. Moreover, ELSSs have a three-year lock-in period and like any other equity diversified fund, investments in these are good at any time. The three-year lock-in helps you ride the market volatility. You could invest in schemes like Franklin India Taxshield or Axis Long Term Equity, depending on your comfort with the risks associated when investing in these schemes. As for your existing investment in an ELSS, as the lock-in is over, you can always redeem it or even stay invested in it. To claim tax deductions, you could also consider redeeming and reinvesting the money.

olmdesk@outlookindia.com