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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)
Quant Tax Plan FundEquityVery High122.3%5star106
Mirae Asset Tax Saver FundEquityVery High79.0%5star6,934
Canara Robeco Equity Tax SaverEquityVery High65.3%5star1,961
Kotak Tax Saver FundEquityVery High68.4%4star1,837
Axis Long Term Equity FundEquityVery High54.5%4star27,870
DSP Tax Saver FundEquityVery High70.6%4star8,056
BOI AXA Tax Advantage FundEquityVery High68.5%4star417
Invesco India Tax PlanEquityVery High59.3%4star1,512
JM Tax Gain FundEquityVery High70.2%4star53
UTI Long Term Equity Fund (Tax Saving)EquityVery High66.7%4star1,800
Tata India Tax Savings FundEquityVery High62.5%4star2,637
BNP Paribas Long Term Equity FundEquityVery High54.6%3star495
Union Tax Saver SchemeEquityVery High64.1%3star335
PGIM India Long Term Equity FundEquityVery High68.8%3star353
ICICI Prudential Long Term Equity Fund (Tax Saving)EquityVery High64.9%3star8,310
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.

Quant Tax Plan Direct Growth

Fund Performance: This fund has given 24.22% annualized returns in the last three years. In the last year, its returns were 122.31%. 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 122.31% 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
AUM106Cr
1Y Returns122.3%

Mirae Asset Tax Saver Fund Direct Growth

Fund Performance: This fund has given 18.45% annualized returns in the last three years. In the last year, its returns were 79.02%. 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 79.02% 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
AUM6,934Cr
1Y Returns79.0%

Canara Robeco Equity Tax Saver Direct Growth

Fund Performance: This fund has given 17.9% annualized returns in the last three years. In the last year, its returns were 65.26%. 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 65.26% 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
AUM1,961Cr
1Y Returns65.3%

Kotak Tax Saver Fund Direct Growth

Fund Performance: This fund has given 15.05% annualized returns in the last three years. In the last year, its returns were 68.39%. 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 68.39% 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
AUM1,837Cr
1Y Returns68.4%

Axis Long Term Equity Direct Plan Growth

Fund Performance: This fund has given 14.85% annualized returns in the last three years. In the last year, its returns were 54.47%. 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 54.47% 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
AUM27,870Cr
1Y Returns54.5%

DSP Tax Saver Direct Plan Growth

Fund Performance: This fund has given 13.95% annualized returns in the last three years. In the last year, its returns were 70.64%. 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 70.64% 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
AUM8,056Cr
1Y Returns70.6%

BOI AXA Tax Advantage Direct Growth

Fund Performance: This fund has given 13.42% annualized returns in the last three years. In the last year, its returns were 68.52%. 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 68.52% 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
AUM417Cr
1Y Returns68.5%

Invesco India Tax Plan Direct Growth

Fund Performance: This fund has given 13.27% annualized returns in the last three years. In the last year, its returns were 59.31%. 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 59.31% 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
AUM1,512Cr
1Y Returns59.3%

JM Tax Gain Direct Plan Growth

Fund Performance: This fund has given 13.13% annualized returns in the last three years. In the last year, its returns were 70.19%. 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 70.19% 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
AUM53Cr
1Y Returns70.2%

UTI Long Term Equity Fund Direct Growth

Fund Performance: This fund has given 12.58% annualized returns in the last three years. In the last year, its returns were 66.71%. 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 66.71% 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
AUM1,800Cr
1Y Returns66.7%

Tata India Tax Savings Fund Direct Growth

Fund Performance: This fund has given 11.49% annualized returns in the last three years. In the last year, its returns were 62.51%. 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 62.51% 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
AUM2,637Cr
1Y Returns62.5%

BNP Paribas Long Term Equity Direct Growth

Fund Performance: This fund has given 12.82% annualized returns in the last three years. In the last year, its returns were 54.64%. 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 54.64% 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
AUM495Cr
1Y Returns54.6%

Union Long Term Equity Fund Direct Growth

Fund Performance: This fund has given 12.77% annualized returns in the last three years. In the last year, its returns were 64.09%. 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 64.09% 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
AUM335Cr
1Y Returns64.1%

PGIM India Long Term Equity Fund Direct Growth

Fund Performance: This fund has given 12.38% annualized returns in the last three years. In the last year, its returns were 68.85%. 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 68.85% 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
AUM353Cr
1Y Returns68.8%

ICICI Prudential Long Term Equity Fund (Tax Saving) Direct Plan Growth

Fund Performance: This fund has given 11.93% annualized returns in the last three years. In the last year, its returns were 64.86%. 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 64.86% 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
AUM8,310Cr
1Y Returns64.9%

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