Pros

Potential for Large Returns: Because of their exposure to equities, ELSS funds have the potential to generate significant returns over the long run.

Shorter Lock-in duration: ELSS funds offer faster liquidity than other tax-saving options like PPF and NSC, with a lock-in duration of just three years.

Tax Benefits: ELSS funds, under Section 80C of the Income Tax Act, provide investors with substantial tax benefits. This allows them to deduct up to Rs. 1.5 lakh from their yearly income, relieving potential investors about potential tax savings.

Cons

Market Risks: ELSS funds are subject to market swings due to the risks connected with equity investments. 

Tax Treatment on Redemption: While ELSS funds provide tax savings for investors, capital gains tax is applied to the profits at redemption. It can impact total returns based on the investor's tax bracket.

Cost of Management: Management fees are integral to ELSS funds, and a fund manager is responsible for them. While availing themselves of their professional assistance incurs costs, it's essential to be aware of these expenses.