Best ELSS Tax Saving Mutual Funds

Best ELSS Tax Saving Mutual Funds

ELSS (Equity Linked Savings Scheme) mutual funds combine tax benefits with equity investment opportunities. These funds invest primarily in equity markets while offering tax deductions under Section 80C of the Income Tax Act. With a shorter lock-in period of just 3 years compared to other tax-saving options, ELSS funds stand out as a smart choice for tax-conscious investors.

ELSS (Equity Linked Savings Scheme) mutual funds combine tax benefits with equity investment opportunities. These funds invest primarily in equity markets while offering tax deductions under Section 80C of the Income Tax Act. With a shorter lock-in period of just 3 years compared to other tax-saving options, ELSS funds stand out as a smart choice for tax-conscious investors....

Read more

Key Benefits of Investing in ELSS Tax Saving Mutual Funds

  • Stability : Save up to Rs.46,800 annually with Rs.1.5 lakh deduction under Section 80C
  • Brand Power : Only 3 years compared to PPF (15 years) and NSC (5 years)
  • Liquidity : Start with just Rs.500 monthly SIP or lumpsum investment
  • Dividend Potential : Expert fund managers handle your investments
Read more

Top ELSS Tax Saving Mutual Funds in India

Discover top ELSS funds that offer tax benefits while creating long-term wealth through equity investments.

HDFC ELSS Tax Saver Fund Growth

  • Returns
    15.6%
  • Lock-In
    3 Years
  • Min Investment
    ₹ 500
  • Choice Rating

DSP ELSS Tax Saver Fund Growth

  • Returns
    12.7%
  • Lock-In
    3 Years
  • Min Investment
    ₹ 500
  • Choice Rating

Motilal Oswal ELSS Tax Saver Fund Growth

  • Returns
    17.2%
  • Lock-In
    3 Years
  • Min Investment
    ₹ 500
  • Choice Rating

SBI ELSS Tax Saver Fund Growth

  • Returns
    16.0%
  • Lock-In
    3 Years
  • Min Investment
    ₹ 500
  • Choice Rating

Mirae Asset ELSS Tax Saver Fund Growth

  • Returns
    11.7%
  • Lock-In
    3 Years
  • Min Investment
    ₹ 500
  • Choice Rating

Best ELSS Tax Saving Mutual Funds Returns Calculator

You would have got

close_grey_icon
Total Investment
₹ 1200
Expected Returns
₹ -3
Total Value
₹ 1197

Past performance doesn't assure future results; actual outcome may vary due to market dynamics.

Your Investment Amount
  • 1
  • 2
  • 3
  • 4
  • 5
per annum

Understanding ELSS Funds

How Do ELSS Tax Saving Mutual Funds Work?

ELSS funds pool money from investors to create a diversified equity portfolio. Professional mutual funds managers invest this pool primarily in equity and equity-related instruments across market capitalizations. Each investment has a mandatory 3-year lock-in period, starting from the investment date. This lock-in gives fund managers the necessary time horizon to generate potential returns while ensuring investor discipline.

Key Factors:

  • Investing primarily in equity and equity-related instruments
  • Maintaining a mandatory 3-year lock-in period
  • Offering potential capital appreciation over the long term
  • Providing tax benefits under Section 80C of the Income Tax Act

What Sets ELSS Apart from Other Tax-Saving Options?

Its dual advantage – tax savings today and potential wealth creation for tomorrow. ELSS funds invest across market capitalizations, allowing you to benefit from both established companies and growing businesses. Professional fund managers actively manage your investments, selecting stocks based on research and market opportunities. This makes ELSS an attractive choice for tax-conscious investors seeking long-term wealth creation.

How to Start Your ELSS Investment Journey

  • Complete your one-time KYC verification
  • Choose between SIP or lump sum investment
  • Select a suitable ELSS fund based on your research
  • Start with as little as ₹ 500
  • Track fund performance regularly
  • Stay invested for long-term benefits

Who Should Invest in ELSS Funds?

  • Tax-paying individuals seeking Section 80C benefits
  • First-time equity investors wanting tax advantages
  • Long-term investors with 5+ years horizon
  • Investors comfortable with market-linked returns
  • Young professionals starting tax-saving investments
  • Individuals looking to create tax-efficient wealth

ELSS Taxation Guide

  • Tax deduction: Up to ₹ 1.5 lakh under Section 80C
  • LTCG tax: 12.5% on gains above ₹ 1 lakh per financial year
  • Lock-in period: 3 years from each investment date
  • Dividend taxation: As per income tax slab
  • Exit load: Nil after the lock-in period

Best ELSS Tax Saving Mutual Funds FAQs

The best ELSS funds combine consistent returns, experienced fund management, and reasonable expense ratios. View our curated list of top ELSS funds above, updated regularly based on performance and risk metrics.

ELSS funds offer tax benefits under Section 80C with a mandatory 3-year lock-in period. Regular equity funds don't provide tax deductions and have no lock-in requirements.

No, ELSS investments have a mandatory 3-year lock-in period. Each investment (including SIP installments) is locked for 3 years from the investment date.

Consider factors like consistent returns, fund manager experience, expense ratio, fund size, and investment strategy. Compare these metrics across top ELSS funds to make an informed decision.

SIP investments help in rupee cost averaging and reduce market timing risks, while lumpsum investments can be beneficial in a bullish market. Choose based on your investment goals and risk tolerance.

You can start investing in ELSS funds with as low as ₹ 500 through monthly SIP or lump sum investment.

You can claim deductions up to ₹ 1.5 lakh under Section 80C, potentially saving up to @rs 46,800 in taxes (assuming the highest tax bracket).

No, ELSS funds invest in equity markets and returns are subject to market risks. However, they have historically provided better returns compared to traditional tax-saving options over long periods.

Yes, you can invest in multiple ELSS funds to diversify your portfolio but ensure you don't exceed the overall Section 80C limit of ₹ 1.5 lakh.

Choice offers:
  1. Research-backed ELSS fund recommendations
  2. Easy paperless investment process
  3. Regular portfolio insights and tracking
  4. Expert support for your investment journey

Explore More Mutual Funds Options

Diversify your portfolio with our collection of high-performing mutual funds across various categories. Compare, choose, and invest in India's top-rated funds to meet your financial goals.