Equity Linked Savings Scheme or ELSS is a type of mutual fund wherein a major portion out of the total fund is invested in equity and related products. As evident from the name of the scheme, it comes with a benefits attached to it, in the form of tax savings.
Two important features of the ELSS scheme are lock-in period and Net Asset Value (NAV) or price of the fund which is declared at the end of each business day.
A few of the recommended tax saving mutual funds are as follows-
The list is not an exhaustive one. Investors are advised to pick a scheme as per their risk and return appetite, keeping in mind the expected tax saving they seek from the mutual fund.
The best mutual fund depends on various factors. Your risk appetite, the duration you want to remain invested and so on.
When it comes to ELSS, the personal factors are less significant. Most of the ELSS funds are multi cap equity funds. They are all locked-in for 3 years. Therefore, ELSS funds need to be chosen based on their track record and performance. If you are looking to invest for Financial year 2017-18 tax saving, below is the portfolio of very good ELSS funds. Check the performance before investing.
You can start SIP or make lump sum payment in the portfolio and the investment will automatically get split equally in all the funds.