Investments in Equity Linked Savings schemes (ELSS) offer tax deduction benefits of up to Rs 1.50 lakh under section 80C of the Income tax Act. ELSS are essentially equity mutual fund schemes. However, investment in ELSS demands a higher risk appetite as compared to other tax saving instruments like fixed deposits. ELSS also has a mandatory lock-in period of 3 years. Among the most recommended ELSS are Motilal Oswal Long Term Equity Funds, Aditya Birla Sun Life Tax Relief 96, L&T Tax Advantage, Axis Long Term Equity Fund, Mirae Asset Tax Saver, DSP Tax Saver and Invesco India Tax Plan.