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Best ELSS Mutual Funds

An ELSS fund (equity-linked savings scheme) has an asset allocation that forms as 65% invested in equity and equity-linked securities, with some exposure to fixed-income securities as well. Unlike other mutual fund schemes, this scheme has a lock-in period of 3 years.

It is the only type of mutual fund eligible for tax deductions under provisions of Section 80C of the Income Tax Act, 1961. Here, you can claim a tax rebate of up to Rs. 1,50,000 and save up to Rs. 46,800 in a year through taxes alone.

Disclaimer: Below-mentioned is a list of some of the best-performing ELSS Funds in India. These funds have been listed based on their 1-year Return, Fund size, Rating, and Risk.

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List of Elss Mutual Funds in India

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
SBI ELSS Tax Saver Fund
EquityVery High-2.8%5₹30,271
HDFC ELSS Tax Saver Fund
EquityVery High2.8%5₹16,579
Parag Parikh ELSS Tax Saver Fund
EquityModerately High3.8%5₹5,538
Motilal Oswal ELSS Tax Saver Fund
EquityVery High-0.4%4₹4,401
ITI ELSS Tax Saver Fund
EquityModerately High-3.6%4₹420
JM ELSS Tax Saver Fund
EquityVery High-5.1%4₹206
DSP ELSS Tax Saver Fund
EquityVery High-3.2%4₹16,980
Franklin India ELSS Tax Saver Fund
EquityVery High-2.8%4₹6,705
Taurus ELSS Tax Saver Fund
EquityVery High-1.5%4₹78
Quantum ELSS Tax Saver Fund
EquityVery High-1.6%4₹220
Bandhan ELSS Tax Saver Fund
EquityVery High-3.8%4₹6,973
HSBC ELSS Tax Saver Fund
EquityVery High-1.1%3₹4,143
Baroda BNP Paribas ELSS Tax Saver Fund
EquityVery High0.5%3₹911
Nippon India ELSS Tax Saver Fund
EquityVery High-2.5%3₹15,338
Mirae Asset ELSS Tax Saver Fund
EquityVery High-0.2%3₹26,075
View All

Who Should Invest in ELSS Funds?

The best performing ELSS mutual funds can stand favourable to:

1. Investors Who Want to Save through Tax

ELSS funds are appropriate for any taxpayer prepared to take the risks of an equity-associated tax-saving device. This is the only 3-year scheme coming under Section 80C for tax benefits.

2. Long Term Investors

As previously mentioned, ELSS funds have a lock-in period; this lock-in period ensures you stay invested in the fund for at least three years. Moreover, these funds tend to perform much better when you continue, even after the lock-in period, to witness the growth potential.

Assessing your returns on ELSS mutual funds investments is easy. Simply use the ELSS calculator and estimate your returns over a period of your choice.

Factors to be Considered while Investing in ELSS Funds

The following factors to consider when finding and choosing the best ELSS funds to invest in 2025:

  1. Lock-In Period of the Fund

ELSS funds come with a lock-in period, as mentioned earlier, and the minimum lock-in period of the fund is three years. The investments need to be kept for a minimum of three years, and it is not possible to redeem the holdings before it. Therefore, the investors who invest in these funds will have to be considerate of this factor. 

  1. Returns of the Fund

You should be aware that ELSS funds do not provide guaranteed returns because they are fully contingent on the performance of the underlying securities. A longer investment horizon, however, can yield larger returns than any other tax-saving investment alternative.

  1. Investment Horizon

To invest in ELSS funds, you need to have a longer investment horizon, perhaps longer than five years. To limit market volatility, the equity exposure of ELSS funds requires a longer investment horizon.

Major Advantages

Here are some of the benefits of investing in the best ELSS mutual fund in 2025:

  • Shortest lock-in period: The 3-year lock-in period of ELSS mutual funds is the shortest among other tax-saving investment options. For example, PPF has a minimum maturity period of 15 years. Hence, tax-saver fund schemes are more liquid.
  • Potential to generate high returns: Contrary to ELSS mutual funds, other tax-saving investment options, like bank fixed deposits and PPF, generate a fixed income. Conversely, ELSS funds invest in stocks of different companies, and their NAV fluctuates accordingly. An uptick in prices of such underlying securities can yield sizeable returns for investors. 
  • Tax benefit: Investments up to Rs.1.5 lakh are eligible for tax deductions as per the provisions of the Income Tax Act

Investment modes: Two routes via which individuals can invest in the best ELSS mutual funds are – Systematic Investment Plan and lump-sum. SIP allows individuals to invest in a scheme by paying fixed instalments at regular intervals (monthly, quarterly, annually, etc.). On the flip side, the lump-sum method allows investors to allocate the available funds to an ELSS mutual fund scheme in one go.

Risks Involved While Investing in ELSS Funds

While finding the best ELSS funds 2025, ensure to check the associated risks:

  1. Liquidity Risk

Liquidity risk in mutual funds refers to the probability that investors will be unable to redeem their investments without experiencing a loss in value. Investments in ELSS funds will be subject to a three-year lock-in period. The investor cannot redeem or transfer his or her ELSS investment during the lock-in period. 

  1. Market Risk

Market risk is the probability that investors will suffer losses as a result of the market's bad performance. There are numerous reasons that might have an adverse effect on stock market prices, including recession, political considerations, market sentiment, and so on. 

Equity Linked Savings Schemes must invest at least 80% of their assets in equity securities. As a result, an ELSS fund's portfolio is subject to market risk.

FAQ

Q1. Are ELSS funds better than mutual funds?

ELSS and mutual funds differ only because of the tax deductions and lock-in period factors. If an investor wants an investment plus tax saving option, he/she can opt for ELSS funds.

Q2. Are ELSS funds tax-free after a period of 3 years?

The taxation of an ELSS fund works such as -

The invested has redeemed the fund at Rs. 3 lakh, and based on the criteria of deduction, Rs. 1.5 lakh will be exempted from tax. Thus, after deducting Rs 1.5 lakh from Rs 3 lakh, taxable income equals Rs 1.5 lakh.

Q3. What are the demerits of ELSS funds?

There are two major risks associated with this fund, and that is liquidity and market risk. This means they can't be liquidated when required; you will have to stay invested for a fixed period, and since these funds invest majorly in equity markets, it does not hold guaranteed returns. 

Q4. How many years is the tax benefit of the ELSS fund?

The tax benefits of the fund apply throughout its lock-in period. 

Q5. Who should not invest in ELSS?

ELSS mutual funds are more suitable for long-term investors. Hence, if you have a longer investment horizon, ELSS can be a good choice.

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

Let's have a closer look

Now let us jump and check about these top 15 mutual fund schemes.

SBI ELSS Tax Saver Fund Direct Growth

Fund Performance: The SBI ELSS Tax Saver Fund has given 24.35% annualized returns in the past three years and 25.39% in the last 5 years. The SBI ELSS Tax Saver Fund comes under the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹30,271Cr
1Y Returns-2.8%

HDFC ELSS Tax Saver Fund Direct Plan Growth

Fund Performance: The HDFC ELSS Tax Saver Fund has given 22.32% annualized returns in the past three years and 25.13% in the last 5 years. The HDFC ELSS Tax Saver Fund comes under the Equity category of HDFC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in HDFC ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹16,579Cr
1Y Returns2.8%

Parag Parikh ELSS Tax Saver Fund Direct Growth

Fund Performance: The Parag Parikh ELSS Tax Saver Fund has given 19.93% annualized returns in the past three years and 23.06% in the last 5 years. The Parag Parikh ELSS Tax Saver Fund comes under the Equity category of PPFAS Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Parag Parikh ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹1,000.

Min Investment Amt₹500
AUM₹5,538Cr
1Y Returns3.8%

Motilal Oswal ELSS Tax Saver Fund Direct Growth

Fund Performance: The Motilal Oswal ELSS Tax Saver Fund has given 26.23% annualized returns in the past three years and 26.31% in the last 5 years. The Motilal Oswal ELSS Tax Saver Fund comes under the Equity category of Motilal Oswal Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹4,401Cr
1Y Returns-0.4%

ITI ELSS Tax Saver Fund Direct Growth

Fund Performance: The ITI ELSS Tax Saver Fund has given 21.96% annualized returns in the past three years and 21.05% in the last 5 years. The ITI ELSS Tax Saver Fund comes under the Equity category of ITI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ITI ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹420Cr
1Y Returns-3.6%

JM ELSS Tax Saver Fund Direct Plan Growth

Fund Performance: The JM ELSS Tax Saver Fund has given 21.1% annualized returns in the past three years and 23.79% in the last 5 years. The JM ELSS Tax Saver Fund comes under the Equity category of JM Financial Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in JM ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹206Cr
1Y Returns-5.1%

DSP ELSS Tax Saver Fund Direct Plan Growth

Fund Performance: The DSP ELSS Tax Saver Fund has given 19.87% annualized returns in the past three years and 23.68% in the last 5 years. The DSP ELSS Tax Saver Fund comes under the Equity category of DSP Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in DSP ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹16,980Cr
1Y Returns-3.2%

Franklin India ELSS Tax Saver Fund Direct Growth

Fund Performance: The Franklin India ELSS Tax Saver Fund has given 19.25% annualized returns in the past three years and 23.69% in the last 5 years. The Franklin India ELSS Tax Saver Fund comes under the Equity category of Franklin Templeton Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Franklin India ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹6,705Cr
1Y Returns-2.8%

Taurus ELSS Tax Saver Direct Growth

Fund Performance: The Taurus ELSS Tax Saver Fund has given 18.81% annualized returns in the past three years and 19.22% in the last 5 years. The Taurus ELSS Tax Saver Fund comes under the Equity category of Taurus Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Taurus ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹78Cr
1Y Returns-1.5%

Quantum ELSS Tax Saver Fund Direct Growth

Fund Performance: The Quantum ELSS Tax Saver Fund has given 18.17% annualized returns in the past three years and 21.31% in the last 5 years. The Quantum ELSS Tax Saver Fund comes under the Equity category of Quantum Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quantum ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹220Cr
1Y Returns-1.6%

Bandhan ELSS Tax Saver Fund Direct Plan Growth

Fund Performance: The Bandhan ELSS Tax Saver Fund has given 16.35% annualized returns in the past three years and 23.99% in the last 5 years. The Bandhan ELSS Tax Saver Fund comes under the Equity category of IDFC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Bandhan ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹6,973Cr
1Y Returns-3.8%

HSBC ELSS Tax Saver Fund Direct Growth

Fund Performance: The HSBC ELSS Tax Saver Fund has given 20.11% annualized returns in the past three years and 21.16% in the last 5 years. The HSBC ELSS Tax Saver Fund comes under the Equity category of HSBC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in HSBC ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹4,143Cr
1Y Returns-1.1%

Baroda BNP Paribas ELSS Tax Saver Fund Direct Growth

Fund Performance: The Baroda BNP Paribas ELSS Tax Saver Fund has given 18.97% annualized returns in the past three years and 20.5% in the last 5 years. The Baroda BNP Paribas ELSS Tax Saver Fund comes under the Equity category of BNP Paribas Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Baroda BNP Paribas ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹911Cr
1Y Returns0.5%

Nippon India ELSS Tax Saver Fund Direct Growth

Fund Performance: The Nippon India ELSS Tax Saver Fund has given 17.99% annualized returns in the past three years and 23.42% in the last 5 years. The Nippon India ELSS Tax Saver Fund comes under the Equity category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹15,338Cr
1Y Returns-2.5%

Mirae Asset ELSS Tax Saver Fund Direct Growth

Fund Performance: The Mirae Asset ELSS Tax Saver Fund has given 17.45% annualized returns in the past three years and 21.8% in the last 5 years. The Mirae Asset ELSS Tax Saver Fund comes under the Equity category of Mirae Asset Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Mirae Asset ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹26,075Cr
1Y Returns-0.2%

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