Tax saving is the scheme which offer rebates on tax to traders in specific terms of the Income Tax Act, 1961. Government gives tax benefit for the investment in particular avenues. e.g. ELSS. Pension schemes offered by mutual funds give tax benefits. These schemes are usually growth oriented and can dominantly invest in equities. The profit opportunity and risk associated to it is like any other equity oriented scheme.

Under Section 88 of the Income Tax Act, contributions made to any Equity Linked Savings Scheme (ELSS) are eligible for rebate @20% for a maximum investment on Rs. 10,000 per financial year.