DSP Mutual Fund: ELSS Beyond Tax Savings, Still Relevant in New Regime?

• DSP Mutual Fund argues ELSS is more than just a tax-saving product, remaining relevant even with reduced 80C benefits under the new tax regime.
• The mandatory three-year lock-in period of ELSS helps address behavioral gaps, encouraging investors to stay invested through market cycles.
• Manish Rathi, Head – Consumer Growth Marketing, DSP Mutual Fund, highlights that investor outcomes are often more impacted by behavior than product selection.
• DSP's data shows digital DIY equity investors have an average holding period of 2.5 years, making ELSS's lock-in crucial for discipline.
• ELSS can be utilized through SIPs year-round, transforming it from a seasonal tax-driven choice into a structured, long-term investment.

Why It Matters: ELSS remains relevant for long-term wealth creation due to its lock-in, fostering investment discipline beyond tax benefits.