Equity Linked Savings Scheme (ELSS) Mutual Funds are one of the popular 80C tax saving options for savvy investors. Read – Other Tax Saving Options u/s 80C
Quick Overview of ELSS Funds
- ELSS is a diversified equity mutual fund which has a majority of the corpus invested in equities.
- There is a lock in period of 3 years from the date of investment. You can remain invested even after 3 years and can withdraw anytime after that lockin.
- Returns are based on returns from Equity Markets. Returns from ELSS Schemes are tax free. Based on previous returns, some of the funds has grown 3 times in 5 years.
- There is no limit of investment in ELSS Funds, but you can claim Tax deduction upto Rs 1.50 Lakh under Section 80C of Income Tax Act.
It is always better to invest
- via SIP mode rather than lumpsum (for cost averaging)
- in GROWTH Option (for wealth accumulation)
- in DIRECT Plan ( to save costs & higher returns)
Top performing ELSS Mutual Funds – which you can consider investing in 2017
|1 Yr||2 Yr||3 Yr||5 Yr|
|Axis Long Term Equity – Direct||40.5||24.5||14||25.4|
|Reliance Tax Saver (ELSS) – Direct||39.7||31.1||14||24.1|
|ABSL Tax Relief 96 – Direct||39.8||27.2||16.2||23|
|Tata India Tax Savings Fund – Direct (G)||40||29.1||18.9|
|IDFC Tax Adv. (ELSS) -Direct (G)||48.8||32.2||18.7||22.8|
|L&T Tax Advantage -Direct (G)||40.7||32||17.2||20.7|
|DSP-BRTax Saver Fund -Direct (G)||32.3||29.2||16.4||21.5|
|Wealth18.com updated on 21 Jan 2018|
Please note that above returns are annualised returns / CAGR).
Read my other post on – Best Mutual Funds to Invest in 2018
If you have any queries related to ELSS Funds, or any other personal finance, feel free to use the comment box below.