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 Name | Category | Risk | 1Y Returns | Rating | Fund Size(in Cr) | |
|---|---|---|---|---|---|---|
| Quant Tax Plan Fund | Equity | Very High | 122.3% | 5star | ₹106 | |
| Mirae Asset Tax Saver Fund | Equity | Very High | 79.0% | 5star | ₹6,934 | |
| Canara Robeco Equity Tax Saver | Equity | Very High | 65.3% | 5star | ₹1,961 | |
| Kotak Tax Saver Fund | Equity | Very High | 68.4% | 4star | ₹1,837 | |
| Axis Long Term Equity Fund | Equity | Very High | 54.5% | 4star | ₹27,870 | |
| DSP Tax Saver Fund | Equity | Very High | 70.6% | 4star | ₹8,056 | |
| BOI AXA Tax Advantage Fund | Equity | Very High | 68.5% | 4star | ₹417 | |
| Invesco India Tax Plan | Equity | Very High | 59.3% | 4star | ₹1,512 | |
| JM Tax Gain Fund | Equity | Very High | 70.2% | 4star | ₹53 | |
| UTI Long Term Equity Fund (Tax Saving) | Equity | Very High | 66.7% | 4star | ₹1,800 | |
| Tata India Tax Savings Fund | Equity | Very High | 62.5% | 4star | ₹2,637 | |
| BNP Paribas Long Term Equity Fund | Equity | Very High | 54.6% | 3star | ₹495 | |
| Union Tax Saver Scheme | Equity | Very High | 64.1% | 3star | ₹335 | |
| PGIM India Long Term Equity Fund | Equity | Very High | 68.8% | 3star | ₹353 | |
| ICICI Prudential Long Term Equity Fund (Tax Saving) | Equity | Very High | 64.9% | 3star | ₹8,310 | |
| 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 |
|---|---|
| AUM | ₹106Cr |
| 1Y Returns | 122.3% |
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 |
|---|---|
| AUM | ₹6,934Cr |
| 1Y Returns | 79.0% |
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 |
|---|---|
| AUM | ₹1,961Cr |
| 1Y Returns | 65.3% |
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 |
|---|---|
| AUM | ₹1,837Cr |
| 1Y Returns | 68.4% |
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 |
|---|---|
| AUM | ₹27,870Cr |
| 1Y Returns | 54.5% |
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 |
|---|---|
| AUM | ₹8,056Cr |
| 1Y Returns | 70.6% |
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 |
|---|---|
| AUM | ₹417Cr |
| 1Y Returns | 68.5% |
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 |
|---|---|
| AUM | ₹1,512Cr |
| 1Y Returns | 59.3% |
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 |
|---|---|
| AUM | ₹53Cr |
| 1Y Returns | 70.2% |
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 |
|---|---|
| AUM | ₹1,800Cr |
| 1Y Returns | 66.7% |
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 |
|---|---|
| AUM | ₹2,637Cr |
| 1Y Returns | 62.5% |
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 |
|---|---|
| AUM | ₹495Cr |
| 1Y Returns | 54.6% |
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 |
|---|---|
| AUM | ₹335Cr |
| 1Y Returns | 64.1% |
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 |
|---|---|
| AUM | ₹353Cr |
| 1Y Returns | 68.8% |
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 |
|---|---|
| AUM | ₹8,310Cr |
| 1Y Returns | 64.9% |
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