Equity-Linked Savings Schemes (ELSS) are a type of mutual fund in India that primarily invest in equities or stocks. They offer tax benefits under Section 80C of the Income Tax Act, allowing investors to claim deductions on investments up to a specified limit. ELSS funds have a mandatory lock-in period of three years, making them suitable for long-term investors. Investing in ELSS can potentially yield higher returns compared to traditional savings options, as they are linked to the performance of the stock market. However, they also come with higher risks due to market volatility, so it's essential for investors to assess their risk tolerance before investing.