Best ELSS Funds to Invest in India

What is ELSS Mutual Funds?

The Equity Linked Savings Scheme (ELSS) are open-ended, diversified equity schemes offered by Mutual Funds India. A tax benefit is offered under section 80C of the Income Tax Act, 1961 under this scheme. The ELSS schemes have not just become the most popular choice for saving but also double as a feasible form of investment that provide a profitable return.

Investments in the ELSS Mutual funds can be made, using both SIP (Systematic Investment Plan) and lump sum investment options. There is a lock-in period of 3 years and provides better liquidity compared to other options like National Savings Scheme and Public Provident Fund. Most of the industry professionals recommend ELSS as one of the best Tax Saving instruments. Since such investments involve some amount of risks, it is good to familiarize with some of the best ELSS funds one can invest in.

What are the Advantages of Investing in ELSS?

One can definitely reap a number of benefits by investing in ELSS as it is one of the most practical forms of investment. It is hard to believe that the minimum investment required for investment is as good as low as Rs. 500. That means if you consider that a person in the 30% tax bracket can invest up to 1.5 lakh, he can in turn save tax of Rs. 45,000 each year.

Here are the Best ELSS Funds to Invest in 2018

IDFC Tax Advantage (ELSS) Fund Growth

Inception Date26th Dec 2008
ObjectiveThe IDFC Equity Linked Savings Scheme aims at generating long term capital growth from a diversified equity portfolio and enables investors to avail of a deduction from total income, as permitted under the Income Tax Act, 1961.
AUM (Assets under Management)Rs. 111.08 Crore, as on (Mar-31-2018)
6 Months Return6%
1 Year Return23.70%
3 Years Return16%
5 Years Return23.50%

Tata India Tax Savings Fund Growth

Inception Date13th October, 2014
ObjectiveThe main objective of Tata India Tax Saving fund, i.e. (ELSS) is to offer long term gains to its unit holder. This fund also helps with income tax benefits and keeps your capital safe.
AUM (Assets under Management)Rs.1,267.25 Crore, as on (Mar-31-2018)
6 Months Return1.40%
1 Year Return14.20%
3 Years Return17%
5 Years ReturnNA

L & T Tax Advantage Fund Growth

Inception Date27th February, 2006
ObjectiveThe objective of L&T; Tax Advantage Fund Growth plan is to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities.
AUM (Assets under Management)Rs.112.59 Crore, as on (Mar-31-2018)
6 Months Return2.20%
1 Year Return15.40%
3 Years Return16%
5 Years Return20.70%

Aditya Birla Sun Life Tax Relief '96 Growth

Inception Date29th March, 1996
ObjectiveThe objective of Aditya Birla Sun Life Tax Relief 96 is to provide an opportunity to save tax while growing your money through Equity investments.
AUM (Assets under Management)Rs. 5,523 crore, as on (Mar-31-2018)
1 Year Return18.98%
3 Year Return14.02%
5 Years Return22.59%

Aditya Birla Sun Life Tax Plan Growth

Inception Date1st October,2006
ObjectiveThe Objective of Aditya Birla Sun Life Tax Plan Growth is to achieve long-term growth of capital along with income tax relief for investment.
AUM (Assets under Management)Rs. 693 Crore (As on Mar 31, 2018)
6 Months Return3.30%
1 Year Return18.70%
3 Years Return13.60%
5 Years Return21.80%

DSP BlackRock Tax Saver Fund Growth

Inception Date1st January, 2013
ObjectiveThe main aim of DSP BlackRock Tax Saver Fund Growth is to generate medium to long-term capital appreciation from a diversified portfolio that is substantially constituted of equity and equity related securities of corporates. It also helps investors to avail deduction, as permitted under the income tax act.
AUM (Assets under Management)Rs. 432.65 Crore (Mar-31-2018)
6 Months Return-1.10%
1 Year Return9.90%
3 Years Return14.70%
5 Years Return21.30%

Axis Long Term Equity Fund Growth

Inception Date1st January, 2013
ObjectiveThis plan aims to generate regular long-term capital growth from a diversified portfolio of equity and equity related securities
AUM (Assets under Management)Rs. 1,176.21 Crore as on (Mar-31-2018)
6 Months Return8.00%
1 Year Return21.50%
3 Years Return13.60%
5 Years Return24.90%

Invesco India Tax Plan Growth

Inception DateNovember, 2006
ObjectiveThis plan aims to generate regular long term capital growth from a diversified portfolio of equity and equity related securities
AUM (Assets under Management)Rs. 479.08 Crore as on (Mar-31-2018)
6 Months Return5.20%
1 Year Return18.60%
3 Years Return12.90%
5 Years Return20.90%

BNP Paribas Long Term Equity Fund (ELSS) Growth

Inception Date20th December, 2005
ObjectiveThe BNP Paribas Long Term Equity Fund aims to generate long-term capital growth from a diversified and actively managed portfolio of equity and equity related securities along with income tax rebate, as may be prevalent from time to time.
AUM (Assets under Management)Rs. 568.43 Crore as on (Mar-31-2018)
6 Months Return-3.30%
1 Year Return9.80%
3 Years Return9%
5 Years Return17.80%

Sundaram Diversified Equity Fund Growth

Inception Date22nd November, 1999
ObjectiveThis scheme aims at generating long-term capital.
AUM (Assets under Management)Rs. 2,546.46 Crore as on (Mar-31-2018)
6 Months Return0.90%
1 Year Return8.60%
3 Years Return13.30%
5 Years Return17.70%

Why is ELSS the best tax saving option for Investors?

The Equity Linked Saving Scheme comes with the shortest compulsory lock-in period of three years. The mutual funds invest mostly in stocks and this makes them the most flawless option to create wealth over a long period. Therefore, it is considered as one of the finest investment options to invest in. In case you hold on to your ELSS investments after the mandatory lock-in period and it is performing well, it can help achieve your financial goals.

Thus, one can always choose to invest in ELSS if you are looking for investment options. However, it is always preferable to research thoroughly before zeroing in on an option.

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