Don't let weak returns of ELSS category in 2022 deter you; stay invested

These funds can fetch double-digit returns over long term which debt tax-saving products can't

The Rs 1,58,199.6-crore equity linked savings scheme (ELSS) category, popularly called tax-saver funds, disappointed investors in 2022 by giving a meagre return of 1.9 per cent. As we enter the last quarter of the year, and salaried employees scramble to submit evidence of their tax-saving investments, a large number will ask whether investing in ELSS is a good idea after their recent abysmal performance.

Strong long-term track record
The ELSS category is purely equity oriented. And equities have the potential to offer higher returns than debt products over the long term. ELSS funds have given a category average return