New Delhi, June 10 -- Equity-linked savings schemes (ELSS), once a staple of tax planning for retail investors, are increasingly finding themselves on the sidelines as more taxpayers migrate to the new tax regime.

According to data released by the Association of Mutual Funds in India (AMFI), ELSS funds recorded net outflows of Rs.650 crore in May, marking the fifth consecutive month of redemptions this year. The category has witnessed net outflows in 13 of the past 14 months.

However, industry experts argue that the trend has less to do with market performance and more to do with a fundamental shift in how investors approach both tax planning and wealth creation.

For years, ELSS funds occupied a unique position in investors' portfolios...