Mutual funds that save taxes are called Equity Linked Savings Schemes, or ELSS in India. They combine Section 80C tax deductions with the advantages of equity investing. Long-term investors favor ELSS because of its 3-year lock-in period, which allows for tax savings and the possibility of large gains.
It is the only type of mutual fund eligible for tax deductions under provisions of Section 80C of the Income Tax Act, 1961. Here, you can claim a tax rebate of up to Rs. 1,50,000 and save up to Rs. 46,800 in a year through taxes alone.
Disclaimer: Below-mentioned is a list of some of the best-performing ELSS Funds in India. These funds have been listed based on their 1-year Return, Fund size, Rating, and Risk.
Tax Saving: • ELSS funds are the only Mutual Funds eligible for annual tax deductions of Rs 1.5 lakh. Income Tax Act Section 80C enables tax deductions on these funds.
The new tax regime taxes long-term capital gains from ELSS above Rs 1 lakh, yet these funds are still one of the greatest tax-saving solutions. These have higher post-tax returns than (Unit Linked Insurance Plans)ULIPs or (Public Provident Fund) PPFs.
Short lock in period: ELSS funds are locked in for three years, unlike PPFs, EPFs, and NSCs, which lock in for five years.
Provide long term return: • Don't redeem funds after three years to expand them. Over time, these funds can build wealth by investing in stocks.
Higher returns: These funds earn higher market returns by investing in shares. ELSS funds can yield twice the returns of a savings scheme. ELSS averages 12% returns over 10 years. This is a big rise from PPF's 8%.
Lets have a closer look.
Now let us jump and check about these top 15 mutual fund schemes.
Motilal Oswal ELSS Tax Saver Fund
Fund Performance: The Motilal Oswal ELSS Tax Saver Fund Fund has given 25.63% annualized returns in the past three years and 25.72% in the last 5 years and 0.00% in the last 10 years. The Motilal Oswal ELSS Tax Saver Fund Fund comes under the Equity category of Motilal Oswal Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal ELSS Tax Saver Fund via lump sum is ₹ 500 and via SIP is ₹ 1000.
Scheme Objective: The scheme seeks to provide capital appreciation by investing in a well diversified portfolio of equity and equity related securities
Fund Performance: The SBI Long Term Equity Fund Fund has given 29.02% annualized returns in the past three years and 27.40% in the last 5 years and 16.28% in the last 10 years. The SBI Long Term Equity Fund Fund comes under the Equity category of SBI Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in SBI Long Term Equity Fund via lump sum is ₹ 500 and via SIP is ₹ 500.
Scheme Objective: The scheme seeks capital appreciation through investments in equities, cumulative convertible preference shares and fully convertible debentures and bonds. The scheme was converted into an open-ended plan in November 1999.
Scheme Manager: Dinesh Balachandran.
Min Amt SIP
: ₹ 500
AUM in ( Cr.)
: ₹ 25731.54
1 Y Return (%)
: 57.55
Risko-Meter : Very High
ITI ELSS Tax Saver Fund
Fund Performance: The ITI ELSS Tax Saver Fund Fund has given 21.38% annualized returns in the past three years and 0.00% in the last 5 years and 0.00% in the last 10 years. The ITI ELSS Tax Saver Fund Fund comes under the Equity category of ITI Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in ITI ELSS Tax Saver Fund via lump sum is ₹ 500 and via SIP is ₹ 500.
Scheme Objective: The Scheme seeks to provide long-term capital appreciation by investing predominantly in equity and equity related securities.
Scheme Manager: Dhimant Shah, Vishal Jajoo.
Min Amt SIP
: ₹ 500
AUM in ( Cr.)
: ₹ 363.32
1 Y Return (%)
: 56.35
Risko-Meter : Very High
BANK OF INDIA ELSS Tax Saver
Fund Performance: The BANK OF INDIA ELSS Tax Saver Fund has given 22.04% annualized returns in the past three years and 29.12% in the last 5 years and 18.17% in the last 10 years. The BANK OF INDIA ELSS Tax Saver Fund comes under the Equity category of Bank of India Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in BANK OF INDIA ELSS Tax Saver via lump sum is ₹ 500 and via SIP is ₹ 1000.
Scheme Objective: The scheme seeks to build a diversified portfolio of stocks of companies having sustainable business models, without any bias of market capitalisation and sector. The scheme will follow top-down approach of equity selection.
Scheme Manager: Alok Singh.
Min Amt SIP
: ₹ 1000
AUM in ( Cr.)
: ₹ 1428.06
1 Y Return (%)
: 53.12
Risko-Meter : Very High
JM ELSS Tax Saver Fund (Regular)
Fund Performance: The JM ELSS Tax Saver Fund (Regular) Fund has given 24.61% annualized returns in the past three years and 25.28% in the last 5 years and 17.58% in the last 10 years. The JM ELSS Tax Saver Fund (Regular) Fund comes under the Equity category of JM Financial Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in JM ELSS Tax Saver Fund (Regular) via lump sum is ₹ 500 and via SIP is ₹ 500.
Scheme Objective: The scheme aims at achieving long term growth of capital along with income tax relief for investment .At least 80% of the funds will be invested in equity instruments.
Scheme Manager: Asit Bhandarkar, Chaitanya Choksi, Gurvinder Singh Wasan.
