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.

You would have got

Total Investment

₹ 1200

Expected Returns

₹ 45

Total Value

₹ 1245

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

Choose Investment Type

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Choose Investment Duration (Year)

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Expected Return

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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

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:

Research-backed ELSS fund recommendations
Easy paperless investment process
Regular portfolio insights and tracking
Expert support for your investment journey

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