Which one is better to invest in ELSS and a Nifty Index Fund for the long term?

ELSS and Index funds are very much different from each other on various parameters especially ELSS funds qualify for income deduction of up to 1.5 Lakh per annum u/s 80C of the Income Tax Act but come with a mandatory lock-in period of three years. On the other hand, index funds are generally open-ended schemes and are relevant for those investors who prefer a passive style of investing. Thus both categories serve different purposes. We would recommend investors to prioritize ELSS as it is the only tax saving instrument which has the shortest lock-in period. However, investors need to choose an investment option based on their risk profile, investment horizon and align it to a realistic financial goal.