Are ELSS funds wealth creator?

Considering your cover story in the last edition, along with the implication of old and new tax regime, can ELSS Funds help in creating long-term wealth? - Nishanth Sinha 

Editor Responds : Yes, ELSS funds can be a great way to create wealth over the long term. They have historically outperformed other tax-saving instruments like PPF and NSC. However, it is important to remember that ELSS funds are equity investments and hence carry market risk. This means that the value of your investment can go up or down depending on the performance of the stock market.ELSS funds invest in equities, which have the potential to generate high returns over the long term. Over the past 10 years, ELSS funds have delivered an average annual return of around 12 per cent. ELSS funds invest in a diversified portfolio of stocks, which helps to reduce risk. 

If you are looking for a long-term investment option that can help you create wealth, ELSS funds are a good option to consider. However, it is important to do your research and choose a fund that has a good track record and a diversified portfolio. You should also be comfortable with the risk involved in equity investments.