Treat ELSS funds as regular flexi-cap investments

Rohit Singhania from DSP Mutual Fund suggests treating Equity Linked Savings Schemes (ELSS) as regular flexi-cap investments. He emphasizes the importance of the three-year lock-in period for promoting disciplined investing, rather than viewing ELSS solely as a tax-saving tool. Singhania highlights that ELSS funds have historically provided better inflation-adjusted returns compared to traditional savings options like fixed deposits. He notes that ELSS investments in equities can lead to stronger long-term growth, making them a valuable wealth-building option. Currently, the DSP ELSS Tax Saver Fund is overweight in sectors like banks, pharmaceuticals, telecom, and oil & gas. Singhania encourages investors to consider staying invested beyond the lock-in period if their ELSS consistently outperforms other flexi-cap funds.