Top 3 Tax Saving (ELSS) Funds to Save Your Tax

More often than not, ELSS Mutual Funds are considered for Tax Savings only but the Investors tend to ignore the Wealth Creation opportunities which come along with ELSS Investments. Their attention only lies in the 1.5 Lacs of Investment for Tax Saving under the Section 80C of Income Tax Act, India.

So here’s our Analyst’s take on some past data according to Tax Saving Schemes which is formulated considering that you invest Rs.1,50,000 every year for Tax Exemption. We have analyzed one Scheme to calculate how much wealth you can create in ELSS Mutual Funds in a span of 11 years.

For Calculations Purpose, We have Considered the Kotak TaxSaver Fund – Growth:

Our Rationale:

As you can observe in the above table, if you invest an amount of Rs.1,50,000 for 11 years, your total sum invested will be Rs.16,50,000. And, your market value according to 27th December 2017 would be Rs.37,66,003.

You would have created wealth almost 2.5 times of your Investment amount after 10 years and additionally, you would have got a tax deduction under Section 80C of the Income Tax Act, India. And, since ELSS Funds have a lock-in period of 3 years only, after every 3rd year you can redeem some part of your money too.

This scheme considered here i.e. Kotak TaxSaver Fund – Growth has already delivered these returns and in future, it may continue giving such kind of returns.

Thus, here are our 3 recommendations for you to invest your Tax Saving amount that will help you to create wealth with a high growth rate. These best performing tax saving mutual fund schemes have been mapped according to your risk appetite for an easy investment opportunity:

Top 3 Tax Saving Mutual Funds to Invest in 2019 – 2020

1. Axis Long Term Equity Fund Growth

2. Aditya Birla Sun Life Tax Relief 96 Growth

3. Mirae Asset Tax Saver Fund Growth