Looking for ways to save taxes on your investment? Here are the best tax saving plans you can invest in this year.

Equity Linked Savings Scheme (ELSS) are mutual funds that help you save taxes up to Rs.1.5 lakhs under Section 80C of Income Tax Act.

Why ELSS?

ELSS have a minimum lock-in period of 3 years which is far less than other investment options like Public Provident Fund (PPF) and National Savings Certificate.

Also, ELSS funds usually invest in stocks, making them appropriate for investment to create long term wealth.

Here are the best ELSS funds you can invest in:

1. DSP BlackRock Tax Saver Fund

Among all tax saving schemes, this fund has performed well in almost all cycles of the market. It has been able to outperform its benchmark, Nifty 500 in 1Y, 3Y and 5Y periods in terms of returns.

The fund has risk lower than its benchmark and does not carry any entry/exit load.

This heavily diversified fund has an impressive track record and is suitable for conservative investors who want a healthy risk-rewards proportion in their investments.

DSP BlackRock Tax Saver Fund Details:

AUM Rs.3,983 Cr.
NAV Rs.46.293
Expense Ratio 2.5%
Return Since Launch 14.82%
Risk Grade Moderately High

2. Aditya Birla Sun Life Tax Relief 96

The performance of Aditya Birla Sun Life Tax Relief 96 is one best examples of the of wealth-creating power of ELSS funds. The fund gave a return of almost 29% in the last year.

Its risk is lower than its benchmark, it does not carry any exit load and has outperformed its benchmark, S&P BSE 200, and peers.

Aditya Birla Sun Life Tax Relief 96 fund is amongst the best risk-return profile in ELSS category and therefore, a worthy investment.

AUM Rs.4,949 Cr.
NAV Rs.30.93
Expense Ratio 2.31%
Return Since Launch 25.64%
Risk Grade Moderately High

3. IDFC Tax Advantage Fund

IDFC Tax Advantage Fund gave a return of approximately 34% in the last year.

The fund does not carry any exit load and has outperformed its benchmark, S&P BSE 200, in the 1Y, 3Y and 5Y returns.

The only drawback of this fund is that its risk is higher than its benchmark.

This fund is suitable for investors who have a long term financial objective such as children’s education or retirement planning. It might not be suitable for investors looking for wealth creation or short term financial needs.

AUM Rs.1,012 Cr.
NAV Rs.57.9937
Expense Ratio 2.26%
Return Since Launch 21.18%
Risk Grade Moderately High

4. ICICI Prudential Long Term Equity Fund

ICICI Prudential Long Term Equity Fund has been one of the top performing ELSS funds over the last 15 years.

Its risk is lower and returns higher by a wide margin when compared to its benchmark, Nifty 500. It does not carry any entry/exit load.

The only drawback of this fund is that the risk-adjusted returns of this fund are lower as compared to its category. However, the fund has impressive long-term record.

AUM Rs.5,121 Cr.
NAV Rs.351.13
Expense Ratio 2.31%
Return Since Launch 21.20%
Risk Grade Moderately High

Happy investing!

Disclaimer: the views expressed here are those of the author. Mutual funds are subject to market risks. Please read the offer document before investing.

The returns above are as on 16th February 2018.