Tax Saving Investments are the list of investment instruments listed by Income Tax Department to encourage tax payers towards investment and give tax incentives.
In general investment is a great idea than saving schemes as they yield better returns but they come with market risks. But when you are getting tax benefits on your income, risks can be lowers.
Tax saving investments are specially listed under following schemes to help users differentiate.
Unit Linked Insurance Plan (ULIP)
Unit Linked Insurance Plans or ULIPs are combined with insurance benefit as well as tax benefit. Pls note that all insurance schemes are not ULIP and you need to make sure you ask these questions to the agent you talk to.
Equity Linked Savings Schemes (ELSS)
Equity Linked Savings Schemes (ELSS) are pure investment instruments unlike ULIP above. ELSS are generally comes under mutual funds but not all mutual funds comes under ELSS for tax benefit.
Pls be noted, when you have opted to ELSS, your money is tax exempted (rules apply) but when you take our the money after maturity, it will be taxed. You need to check with tax consultant to manage this.