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Best ELSS Tax Saving Mutual funds to invest in 2017 – Top Performing



Equity Linked Savings Scheme (ELSS) Mutual Funds are one of the popular 80C tax saving options for savvy investors.

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)

Read – Other Tax Saving Options u/s 80C


Top performing ELSS Mutual Funds – which you can consider investing in 2017

    Annualised Return (%)
  AUM 1 Yr 2 Yr 3 Yr 5 Yr
HDFC Long term Advantange 1149 13.4 5.3 16.9 17.9
DSP-BRTax Saver Fund (G 1342 11.8 8.1 21.1 21.4
Birla SL Tax Relief 96 (G 2275 4.2 6.7 20.7 21
Reliance Tax Saver (ELSS) (G 5324 4.7 0.9 22.9 22.8
Axis Long Term Equity Fund (G) 9518 0 3.3 20.8 22.3
Franklin India Tax Shield (G) 2170 4.72 4.8 19.58 18.59
          updated on 31 Dec 2016          

Please note that above returns are annualised returns / CAGR.  For clarification,

  • mutual fund investment will double in 5 years, if its CAGR return is 15%.
  • mutual fund investment will become 3 times in 5 years, if its CAGR return is 24.5%.

Also read – Best Equity Funds (Large, Midcap fund, Diversified) to invest in 2017

Read – From 1st Feb 2017, New Central KYC process must for new Mutual Fund Investors.

If you have any queries related to ELSS Funds, or any other personal finance, feel free to use the comment box below.

If you have any queries related to this article or any other personal finance query ( Investment, Taxation etc), please comment below

About wealth18

The author is a Chartered Accountant and loves to write about Personal Finance, Wealth Management, Taxation etc. Disclaimer - The articles on this website is for informational and knowledge purposes and should not be treated as financial advice, Please consult your financial advisor before taking any investment decision.

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