New Delhi, Jan. 27 -- Over the past few years, the government has made the New Tax Regime far more attractive. As a result, many taxpayers have shifted from the Old Tax Regime to the new one. In doing so, they have had to forgo several tax deductions that were earlier available. One such deduction was for investments in Equity Linked Savings Schemes (ELSS).

This raises an important question: is ELSS still relevant without tax deductions under the New Tax Regime, and should investors continue to invest in it?

Equity Linked Savings Schemes (ELSS) are mutual fund schemes that invest at least 80% of their assets in equities and equity-related instruments. These schemes come with a 3-year lock-in period. Under the Old Tax Regime, ELSS invest...