How are returns obtained in an ELSS mutual fund?

ELSS (Equity Linked Saving Scheme) Mutual Funds are just like other mutual funds in that the Fund Manager invests your money in various sectors and try to maximize the return on your investment.
But the added advantage is that you get 20% income-tax rebate on the principle invested (max. limit is Rs. 1 Lakh).
The catch is you need to stay invested for atleast 3 years (lock-in period). But it sure beats other medium-term investment options like NSC or FD.
**PLESE CHECK WITH YOUR AUDITOR/INSURANCE ADVISOR FOR ANY LATEST MODIFICATIONS IN INCOME TAX BENEFITS TO GET A COMPREHENSIVE AND UP-TO-DATE ANSWER**

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