No, equity and SIP are not the same — they refer to different aspects of investing.

●    Equity refers to ownership in a company, usually through equity mutual funds or stocks. It’s an asset class that involves higher risk but also offers the potential for higher returns.
●    SIP (Systematic Investment Plan) is a method of investing, not an asset class. This helps you to put a fixed amount (like monthly) into mutual funds, including equity funds.

ELSS (Equity Linked Savings Scheme) and equity mutual funds both invest primarily in equities, but they differ in purpose and structure. ELSS is a tax-saving option under Section 80C, allowing deductions up to ₹1.5 lakh per year with a fixed lock-in period of three years. In contrast, regular equity mutual funds have no lock-in period and are designed mainly for long-term wealth creation without any tax benefits.

The Equity Linked Savings Scheme (ELSS) has a mandatory lock-in period of three years, the shortest duration among tax-saving instruments eligible under Section 80C of the Income Tax Act. This fixed holding period ensures compliance with regulatory requirements while allowing investors to benefit from equity market exposure and tax deductions.

Whether ELSS is good or bad depends on your financial goals. But yes, ELSS is beneficial for long-term wealth creation with tax savings (Section 80c deduction up to ₹1.5 lakh/year). 

Pros: 

• Tax efficiency: Lowest lock-in (3 years) among 80C options. 
• Growth potential: Equity exposure offers inflation-beating returns over time. 

Cons: 

Yes. You can invest in two or more ELSS funds simultaneously. It is considered an ideal option if you’re planning to diversify your investments and maximise your tax savings. In such a scenario, you can find two different ELSS funds that align well with your financial objectives and risk tolerance and then proceed with the investment.

The best ELSS scheme for you depends on a variety of factors, such as your financial situation, risk tolerance and investment strategy. Other than this, the current market condition is also a key factor that needs to be taken into consideration. You can explore various ELSS funds and compare them on the basis of their past performance before making a choice.

All ELSS investments come with a minimum lock-in period of 3 years, and this applies to both lump-sum investments and SIP (Systematic Investment Plan) investments. However, there is no option for premature withdrawal in equity-linked savings schemes. This means you cannot redeem your invested money before this lock-in period comes to an end.

Equity-linked mutual funds are those that invest a major portion of their corpus into equities or stocks. They are also referred to as tax-saving funds, as they offer tax benefits under Section 80c of the Income Tax Act. These mutual funds are a preferred choice for those looking for a short-term investment with higher potential for capital growth because of their shorter lock-in period (3 years).

An Equity-Linked Savings Scheme (ELSS) mutual fund is a prime example of equity-linked investment. These funds invest primarily in stocks, thus, their returns are directly tied to the equity market's performance. Besides ELSS, other examples include equity-linked notes (ELNS) and equity-linked securities (ELKS).

Both ELSS and Public Provident Fund (PPF) serve different financial goals. ELSS offers potential for higher returns but comes with higher risks. It also has a shorter lock-in period of 3 years and offers tax benefits, but only up to 1.5 lakhs. PPF, on the other hand, offers guaranteed returns with low risk and is tax-free at all stages, but has a longer lock-in of fifteen years. Ultimately, the better option for you will be the one that suits your risk appetite and financial goals.