One good way to understand returns would be to look at past returns
Reliance Tax Saver (ELSS) Fund -This fund has given a return of 22.23% p.a in past 5 years
IDFC Tax Advantage (ELSS) Fund -This fund has given a return of 21.97% p.a in past 5 years
Aditya Birla SL Tax Relief 96 Fund - This fund has given a return of 22.72% p.a in past 5 years
Of course, past returns are no guaratee of future performance. But they usually have been good indicators of how good an ELSS mutual fund is.
ELSS mutual funds' investment style is similar to a multi-cap fund. So the performance is also usually similar.
If you're investing in ELSS mutual funds, try to invest for more than 5 years - even though the lock-in period ends in 3 years.
ELSS mutual funds invest in the equity markets and therefore their returns are not fixed. These are multi-cap equity funds that invest in companies from diversified sectors.
To set an expectation, look at the average annualized returns given by top 4 ELSS funds over last 1, 3 and 5 years.
1 Year: 21%
3 Years: 15%
5 Years: 21%
Other tax saving options such as PPF, Tax saving-FD etc, give around 6-8% post tax returns.
Read more about Top rated ELSS funds : here.
ELSS mutual funds invest in the equity markets and therefore their returns are not fixed. These are multi-cap equity funds that invest in companies from diversified sectors.
To set an expectation, look at the average annualized returns given by top 4 ELSS funds over last 1, 3 and 5 years.
1 Year: 21%
3 Years: 15%
5 Years: 21%
Other tax saving options such as PPF, Tax saving-FD etc, give around 6-8% post tax returns.