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Section 80C Mutual Funds

Section 80C was introduced by the Finance Act, 2005. This section mainly provides deduction from the total income in respect of various expenditures / payments, investments on which a tax deduction was earlier available under Section 88. The total deduction under this section is limited to up to Rs. 1.5 lakh only. The Tax deduction under this scheme is available for Provident Fund (PF) & Voluntary Provident Fund, Public Provident Fund (PPF), Life Insurance Premiums, Equity Linked Saving Scheme (ELSS) of Mutual Funds.

There are some mutual funds schemes that offer tax savings and are called ELSS or Equity Linked Savings Schemes and these are eligible for deduction under section 80C of the Income Tax Act, 1961. These are mutual funds schemes that are invested in stocks and come with a mandatory lock-in period of three years. The ELSS is a very powerful investment tool that helps you build wealth in long term.

Top ELSS Mutual Funds In 2019

Axis Long Term Equity Fund

The Axis Mutual Fund launched its first scheme in December 2009 and has grown strongly since then. They attribute their success to three founding principles – Long term wealth creation, Outside (customer) view and Long term relationships.

Consider that Axis Mutual Fund can help you save tax up to Rs. 47,668 per year by investing up to Rs. 1.5 lakh per year. The Key features of this scheme are:

  • This is an open-ended ELSS savings scheme with a 3-year lock-in period.
  • It provides tax benefits up to Rs. 47,668 under section 80C of the Income Tax Act, 1961.
  • Well suited for an investment horizon of at least 3-5 years and more.
Inception Date1st January 2013
ObjectiveTo generate income and long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related securities. However, there can be no assurance that the investment objective of the Scheme will be achieved.
AUM (Assets under Management)Rs. 14,939.31 Crore as on (Mar-31-2018)
6 Months Return4.8%
1 Year Return19.4%
3 Years Return10.4%
5 Years Return22.5%

Franklin India Taxshield

Franklin Templeton India's association with India dates back to over 2 decades as a capitalist. It majorly thrusts on investing in the markets around the world. Franklin's Templeton's office in India was set up in 1996 as Templeton Asset Management India Pvt. Limited. However, it flagged the mutual fund business with the launch of Templeton India Growth Fund in September 1996, and since then the business has grown at a steady pace.

The Franklin India Taxshield is an ELSS mutual fund and offers investors a tax deduction for an investment of up to Rs. 1.5 lakh. The tax benefits of investing in this fund are:

  • Long term capital gains with indexation if units are held for more than 36 months.
  • Short term capital gains at the income tax slab if the units are held for less than 36 months.
Inception Date10-Apr-1999
ObjectiveThe scheme seeks medium to long-term growth of capital, with income tax rebate. The scheme invests in equities and there is an exposure to PSU Bonds and debentures and Money Market instruments.
AUM (Assets under Management)Rs. 3,118.09 Crore (Mar-31-2018)
6 Months Return2.60%
1 Year Return11.10%
3 Years Return10.70%
5 Years Return18.80%

DSP BlackRock Tax Saver Fund

The DSP Back Rock is a joint venture between a 150 year-old Indian Financial firm and DSP Group, and the world's largest and very famous investment management firm BlackRock. They state to be one of the premier asset management companies in India with over 20 years of track record of Investment excellence.

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%

Reliance Tax Saver Fund

The Reliance Mutual Fund is one of India's leading mutual funds company and is part of a part of the Reliance Anil Dhirubhai Ambani (ADA) Group. The Reliance Mutual fund offers investors a well-rounded portfolio to meet investor requirements in almost 160 cities across the country. They aim to launch innovative products and customer service initiatives to increase value to investors.

It was established as a trust under the Indian Trusts Act, 1882 with Reliance Capital Limited (RCL), as the Settler/Sponsor and Reliance Capital Trustee Co. Limited (RCTC), as the Trustee. Later Reliance Fund has been registered with SEBI on June 30, 1995, and name of Reliance Capital was changed to Reliance Mutual Funds.

Inception Date23-Aug-2005
ObjectiveTo deploy funds thus raised, so as to help the unit holders earn reasonable returns on their savings; and take necessary step time to time to realize the effects without any limitation
AUM (Assets under Management)Rs. 9,729.27 Crore (Mar-31-2018)
6 Months Return-9.50%
1 Year Return3.80%
3 Years Return8.20%
5 Years Return20.30%

ICICI Prudential Long-Term Equity Fund

The ICICI Prudential is the largest asset management company and is a joint venture between ICICI Bank in India, and Prudential plc which is one of UK’s largest players in the financial services sectors. It has a strength of more than 1000 employees with around 120 locations with an investor base of more than 1.9 million investors.

Inception Date9-Aug-1999
ObjectiveICICI Prudential Long-Term Equity Fund (Tax Saving) The scheme seeks long-term capital appreciation by investing approximately 90 per cent of the investments in equity instruments, while the balance 10 per cent would be a parked in debt and money market instrument and cash (Including-money at call).
AUM (Assets under Management)Rs. 4,658.41 (Mar-31-2018)
6 Months Return4.30%
1 Year Return8.80%
3 Years Return10.30%
5 Years Return18.60%

Birla Sun Life Tax Relief 96

The Birla Sun Life Asset Management Company was formally known as Birla Sun Life Asset Management Company Limited. It is an investment managing company registered under the Securities and Exchange Board of India. It is a joint venture between the Aditya Birla Group of India and Sun Life Financial Inc. of Canada. Birla Sun Life Asset Management Company was established in 1994 and has been successfully running since then.

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 Years Return14.02%
5 Years Return22.59%

Invesco India Tax Plan

The Invesco India is an asset management company and aims to serve investment needs of domestic and global investors; individuals, corporations and institutions through mutual funds and sub-advised portfolios. It is the world’s leading independent global investment management firm with dedicated investment professionals located in 11 countries. Their main focus is "Investors First" and commitment to helping clients pursue their financial goals.

Inception Date9-Aug-1999
ObjectiveThe investment objective of the portfolio is to achieve capital appreciation over a long term by investing in a diversified portfolio
AUM (Assets under Management)Rs.479.08 Crore (Mar-31-2018)
6 Months Return6.70%
1 Year Return18.40%
3 Years Return13.60%
5 Years Return20.80%

Principal Tax Savings

The Principal pnb asset management company is the investment manager to Principal Mutual Fund. They offer a wide range of unusual solutions for both retail and institutional investors. They adhere to the strategic principles of rigorous risk control, process-orientation, and superior research to support our investment decisions. The company manages assets for over 4 lakh customers, through 102 investor centers with over 20,000 distributors across the country.

Inception Date31-Mar-1996
ObjectiveThe investment objective of the portfolio is to achieve capital appreciation over a long term by investing in a diversified portfolio.
AUM (Assets under Management)Rs. 387.83 Crore
1 Year Return14.68%
3 Years Return16.13%
5 Years Return21.20%

Tata India Tax Saving

Since Tata India is backed by one of the most trusted brands in India, it has earned the trust of lakhs of investors with its consistent performance and world-class service. It is centered on seeking consistent, long-term results. Tata Asset Management aims at overall excellence, within the framework of transparent and rigorous risk controls. They firmly believe in the attaining the benchmark through the following tenets of performance i.e.:

  • Consistency
  • Flexibility
  • Stability
  • services
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

IDFC Tax Advantage

The IDFC is a finance company based in India and is the subsidiary of Infrastructure Development Finance Company Limited (IDFC). The IDFC was registered with SEBI and set up as a collaboration between the Government of India and financial institutions to deploy USD 5 billion in capital for infrastructure projects in India.

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 Year Return16%
5 Years Return23.50%

Section 80C FAQ's

Does SIP come under 80C?

Yes, SIP investments in the ELSS qualify for a tax deduction under section 80C of the Income Tax Act, 1961.

Does mutual fund come under 80c?

Yes, ELSS mutual funds are subject to tax deduction under section 80C of the Income Tax Act, 1961.

What is 80C?

80C is a tax deduction section under Income Tax Act, 1961 and one can claim a reduction up to Rs. 1,50,000 from your total income.