all of us want to make money but very few of us know how investments help you make money however you need to be careful while choosing the right investment instrument for yourself as the market is flooded with options there are investment tools like equity shares mutual funds fixed deposits gold real estate etc that attract everyone equity linked saving scheme elss mutual funds wins over other investment tools as it helps in building wealth while saving taxlet us take a look at what elss is and why it makes for a good investment optionwhat is elssequity linked saving schemes or elss as they are popularly called are taxsaving mutual fund schemes as the name suggests elss schemes invest primarily in equity market and thus provide attractive returns elss schemes are a favourite of many investors because they help in availing tax benefits the money invested interest earned and the redemption amount are all taxfree there is a lockin period of 3 years which means that any investment you make in an elss scheme would be lockedin for a minimum period of 3 years and can be redeemed only after the 3year lockin period is over why investing in elss makes senseelss investments are favoured and also recommended by financial experts because of the benefits they promise here are some reasons why elss is one of the best investment avenues good returnselss tends to provide attractive returns in comparison to other investment tools as most of the funds is invested in the equity market according to reports the best elss funds have delivered returns of around 20 per cent in the last five year low risksif you are wondering that equity investments are risky and volatile you are right however elss funds do not have very high risks because the risk is diversified elss schemes invest in equity shares of different companies which reduces the risk and volatility inherent in equity investments moreover there is also a component of debt investment in the elss funds portfolio which gives stability to returns lower lockin period elss schemes have a lockin period of only 3 years which is quite low compared to 5year fixed deposits ppf accounts or nsc investments thus elss schemes not only provide attractive returns you can avail the returns within a short span of time too tax exemptionthis is perhaps the primary reason why investors are biased towards elss fund schemes elss schemes promise triple tax advantage firstly the money invested in an elss scheme up to a limit of rs15 lakhs is taxfree under section 80c thus you can lower your taxable income and consequently your tax liability through elss investments secondly the returns generated from the scheme remain invested till the lockin period thus they also get tax exemption lastly after the lockin period is over the returns you avail are called long term capital gains and become taxfree this way elss schemes provide you triple tax exemptions the money you invest the