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Best Tax Saving Mutual Funds to Invest in India 2022

08 June 2022

The Equity Linked Savings Scheme is a mutual fund that provides tax savings as well as income growth. These are open-ended investment vehicles that focus on stock market investments. There are a variety of savings plans available that can help you earn a good return, however, ELSS funds have one significant advantage which makes them different from all the other funds: tax benefits.

As a result, you can get the best of both worlds by investing in this category of tax-advantaged mutual funds. It can help you reduce your tax liability while also helping you compound your wealth over time. Because ELSS is equity-oriented, it has the potential to provide inflation-indexed returns over time, allowing you to save for goals.

ELSS Funds are distinguished from other equity funds by two primary characteristics:

  •   Three-year lock-in period is required.
  •   Section 80C of the Income Tax Act of 1961 allows for a tax deduction of up to Rs.1.5 lakh.

In this blog, we have comprised a list of the finest Mutual Funds for Tax Benefits 2022:

Best ELSS Funds to Invest In 2022

S.No.

Tax Saving ELSS Funds

1.

Quant Tax Plan Direct-Growth

2.

BOI AXA Tax Advantage Direct-Growth

3.

Mirae Asset Tax Saver Fund Direct-Growth

4.

IDFC Tax Advantage (ELSS) Direct-Plan-Growth

5.

Canara Robeco Equity Tax Saver Direct-Growth

Factors to Consider Before Investing in the Best ELSS Funds 2022

1) Returns On Investment

Prior to investing in a fund, evaluate its efficiency to that of its competing companies and milestones to see if the fund has demonstrated uniformity in its accomplishments and performance over the years because when a fund outranks its target or rivals, it produces great profits.

2) The Fund House’s Background

It is advised to select a fund house that has already done great and performed exceptionally for a significant period of time.

3) Manager Of the Fund

Another factor to consider is the fund manager, who is responsible for the overall management and supervision of your funds. The fund manager has to be knowledgeable and experienced enough to select the most efficient stocks and build a solid portfolio for you.

4) Expense-to-Income Ratio

The expense ratio shows the amount of your money spent on fund management and it is always better to choose funds with a relatively low expense ratio because it indicates that you’ll get significantly greater returns.

Performance Of the Best ICICI Prudential Mutual Funds 2022

– Quant Tax Plan Direct-Growth

Quant Tax Plan Direct-Growth is an Equity Mutual Fund Scheme launched by Quant Mutual Fund. The scheme aims to generate capital appreciation by investing predominantly in equity shares with growth potential. The secondary objective is to give dividends and other income. This fund is considered a top Mutual Fund for Tax Benefit.

– BOI AXA Tax Advantage Direct-Growth

BOI AXA Tax Advantage Direct-Growth is an Equity Mutual Fund Scheme launched by BOI AXA Mutual Fund. The scheme seeks to build a diversified portfolio of stocks of companies having sustainable business models, without any bias on market capitalization and sector. The scheme will follow a top-down approach to equity selection. It is considered a Best Tax Saving Mutual Fund.

– Mirae Asset Tax Saver Fund Direct-Growth

Mirae Asset Tax Saver Fund Direct-Growth is an Equity Mutual Fund Scheme launched by Mirae Asset Mutual Fund. The scheme seeks to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related instruments and is known as the Best Tax Saver Mutual Fund 2022.

– IDFC Tax Advantage (ELSS) Direct-Plan-Growth

IDFC Tax Advantage (ELSS) Direct-Plan-Growth is an Equity Mutual Fund Scheme launched by IDFC Mutual Fund. The scheme seeks to build a diversified portfolio comprising stocks of companies with strong fundamentals that are available at reasonable valuations.

– Canara Robeco Equity Tax Saver Direct-Growth

Canara Robeco Equity Tax Saver Direct-Growth is an Equity Mutual Fund Scheme launched by Canara Robeco Mutual Fund. The scheme seeks to achieve long-term capital appreciation by predominantly investing in inequities. It also offers tax benefits under Section 80C. The investments may be made in primary as well as secondary markets and the scheme may also invest in overseas equity markets like ADRs/GDRs.

Conclusion

This was the list of the best tax saving mutual funds 2022. ELSS funds are suitable for investors looking for tax advantages as well as high-profit returns. Additionally, regular investments in the fund can provide the investor with the benefit of investment discipline.

To read the Research Analyst (RA) disclaimer, please click: here

Disclaimer: The views expressed in this post are that of the author and not those of Groww.

To read the RA disclaimer, please click here

Research Analyst - Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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