5. Tax Benefits: There exist mutual funds which have tax deduction benefits like ELSS in certain countries, where there is a lock-in period for the funds, but they provide excellent opportunities5. Tax Benefits: There exist mutual funds which have tax deduction benefits like ELSS in certain countries, where there is a lock-in period for the funds, but they provide excellent opportunities for saving taxes with investment in the equity market. for saving taxes with investment in the equity market.