Best ELSS Mutual Funds

Equity-Linked Savings Scheme or ELSS is an open-ended equity mutual fund. The best ELSS mutual funds invest in equity and equity-related securities of companies across the market segment. Investments in ELSS mutual funds are eligible for tax benefits under section 80C of the Income Tax Act. You can save up to Rs 1.5 lakh per year by investing in ELSS mutual funds.

It is worth noting that ELSS mutual funds come with a lock-in period of three years. This period is less than most other investment avenues available under section 80C. You can make a lump-sum investment or start a SIP to invest in best performing ELSS funds in India. The minimum amount of SIP allowed for investing in ELSS mutual fund is Rs 500. There is no maximum limit for the investment that one can make in the best ELSS funds in India.

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Top 10 Elss Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Tata India Tax Savings FundEquityModerately High17.8%5star2,009
Axis Long Term Equity FundEquityModerately High16.5%5star21,492
Kotak Tax Saver FundEquityModerately High13.6%5star987
Mirae Asset Tax Saver FundEquityModerately High17.6%5star2,671
Motilal Oswal Long Term Equity FundEquityModerately High15.3%5star1,584
Canara Robeco Equity Tax SaverEquityModerately High13.1%4star988
DSP BlackRock Tax Saver FundEquityModerately High17.4%4star6,103
Invesco India Tax PlanEquityModerately High12.1%4star977
Aditya Birla Sun Life Tax Relief 96EquityModerately High7.4%4star9,814
IDFC Tax Advantage (ELSS) FundEquityModerately High4.3%4star2,053
JM Tax Gain FundEquityModerately High16.0%4star35
DHFL Pramerica Tax PlanEquityModerately High-0.8%4star34
Aditya Birla Sun Life Tax PlanEquityModerately High6.4%4star619
Escorts Tax PlanEquityModerately High9.0%4star11
HDFC Long Term Advantage FundEquityModerately High11.1%4star1,392
View All Top 10 Elss Mutual Funds

Features of ELSS Mutual Funds

ELSS mutual funds are an ideal investment medium to save taxes and expose your capital to equity markets. This allows you to save taxes and earn significant returns from the best performing ELSS mutual funds. Since ELSS mutual funds come with a statutory lock-in period, it allows investors to stay invested for a longer period and avoid selling on impulses.

Some of the best ELSS funds to invest remain the growth funds as this reinvest the returns and ensure higher returns at the end of the lock-in period. Savvy investors can also opt for dividend reinvestment option which allows the investors to decide if they wish to reinvest the dividend based on the market conditions.

Taxability

For most investors, ELSS investments are to save taxes as these funds have a lock-in period of only three years. By investing Rs 1.5 lakhs each year, one can save taxes up to Rs 46,800. After a period of three years, gain from ELSS funds will be treated as long-term gains and taxed at 10 per cent for the gains above Rs 1 Lakh.

ELSS mutual funds enable investors to save taxes via tax deductions, tax exemptions, and benefit of indexation. The Rs 1.5 lakh that one invests can be deducted from the taxable income, and the returns under Rs 1 lakh are exempted from taxation. ELSS enables investors to save taxes and build wealth in the process.

Who Are These Funds Suited For?

ELSS mutual funds are a smart way to save a substantial amount of money that may go towards taxes. On the other hand, ELSS mutual funds may not guarantee returns as it depends on the equity market. So, ELSS mutual funds are ideal for anyone who seeks to save taxes but is willing to take a risk and expose their investment to equity markets.

Investors willing to take risks may earn higher returns as compared to fixed-income investments. However, people nearing retirement or averse to volatility should not invest in ELSS mutual funds and rather opt for NPS, PPF, and similar safer schemes. Anyone who can invest for a longer period of time beyond the statutory lock-in period should definitely invest in ELSS mutual funds.

Major Advantages

ELSS mutual funds come with a lock-in period of only three years which is less than other closed-ended funds and tax-saving instruments. This is ideal for investors looking only to save taxes and get back the capital along with any returns as soon as possible. Additionally, there is no maximum limit to invest in the ELSS mutual funds and the returns are taxed at only 10 per cent.

Best ELSS mutual funds to invest remain a safe medium for investors with no or minimal knowledge of equity market to get returns from the markets. These mutual funds are managed by experts and they pick the top companies as per their knowledge and judgement. This opens the possibility of higher returns than other tax-saving investments such as PPF or NPS.

Some of the best ELSS mutual funds in India also invest in mid cap companies. This allows investors to earn substantially higher returns than funds that invest in only large cap companies. However, the risk factor for such funds is also higher compared to the other ELSS mutual funds. It is essential that you analyse your investment goal and investment horizon before finalising any fund.

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

Tata India Tax Savings Fund Direct Growth

Fund Performance: This fund has given 15.42% annualized returns in the last three years. In the last year, its returns were 17.76%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 17.76% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM2,009Cr
1Y Returns17.8%

Axis Long Term Equity Direct Plan Growth

Fund Performance: This fund has given 17.05% annualized returns in the last three years. In the last year, its returns were 16.48%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 16.48% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM21,492Cr
1Y Returns16.5%

Kotak Tax Saver Fund Direct Growth

Fund Performance: This fund has given 14.01% annualized returns in the last three years. In the last year, its returns were 13.57%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 13.57% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM987Cr
1Y Returns13.6%

Mirae Asset Tax Saver Fund Direct Growth

Fund Performance: This fund has given 18.81% annualized returns in the last three years. In the last year, its returns were 17.61%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 17.61% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM2,671Cr
1Y Returns17.6%

Motilal Oswal Long Term Equity Fund Direct Growth

Fund Performance: This fund has given 14.61% annualized returns in the last three years. In the last year, its returns were 15.31%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 15.31% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM1,584Cr
1Y Returns15.3%

Canara Robeco Equity Tax Saver Direct Growth

Fund Performance: This fund has given 14.61% annualized returns in the last three years. In the last year, its returns were 13.09%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 13.09% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM988Cr
1Y Returns13.1%

DSP Tax Saver Direct Plan Growth

Fund Performance: This fund has given 13.08% annualized returns in the last three years. In the last year, its returns were 17.4%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 17.4% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM6,103Cr
1Y Returns17.4%

Invesco India Tax Plan Direct Growth

Fund Performance: This fund has given 14.71% annualized returns in the last three years. In the last year, its returns were 12.09%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 12.09% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM977Cr
1Y Returns12.1%

Aditya Birla Sun Life Tax Relief 96 Direct Growth

Fund Performance: This fund has given 13.85% annualized returns in the last three years. In the last year, its returns were 7.38%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 7.38% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM9,814Cr
1Y Returns7.4%

IDFC Tax Advantage (ELSS) Direct Plan Growth

Fund Performance: This fund has given 12.76% annualized returns in the last three years. In the last year, its returns were 4.27%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 4.27% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM2,053Cr
1Y Returns4.3%

JM Tax Gain Direct Plan Growth

Fund Performance: This fund has given 15.31% annualized returns in the last three years. In the last year, its returns were 16.03%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 16.03% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM35Cr
1Y Returns16.0%

DHFL Pramerica Tax Plan Direct Growth

Fund Performance: This fund has given 9.69% annualized returns in the last three years. In the last year, its returns were -0.8%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing -0.8% returns in the last one year. . Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM34Cr
1Y Returns-0.8%

Aditya Birla Sun Life Tax Plan Direct Growth

Fund Performance: This fund has given 13.07% annualized returns in the last three years. In the last year, its returns were 6.4%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 6.4% returns in the last one year. . Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM619Cr
1Y Returns6.4%

Quant Tax Plan Direct Growth

Fund Performance: This fund has given 10.51% annualized returns in the last three years. In the last year, its returns were 9.01%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 9.01% returns in the last one year. . Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM11Cr
1Y Returns9.0%

HDFC Long Term Advantage Direct Plan Growth

Fund Performance: This fund has given 13.14% annualized returns in the last three years. In the last year, its returns were 11.09%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 11.09% returns in the last one year. . Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM1,392Cr
1Y Returns11.1%

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