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)
Top performing ELSS Mutual Funds – which you can consider investing in 2017
|Annualised Return (in % annualised)|
|AUM||1 Yr||2 Yr||3 Yr||5 Yr|
|Reliance Tax Saver (ELSS) (G||8405||20.6||17.8||13.2||21.7|
|Axis Long Term Equity Fund (G)||13359||18.1||12.5||15||22.8|
|ABSL Tax Relief 96 (G||3501||21.1||17.2||18.9||21.9|
|DSP-BRTax Saver Fund (G||2808||17.1||19.1||17.1||21.1|
|IDFC Tax Advantage (ELSS)-RP (G)||623||26.5||18.9||18.2||21.1|
|L&T Tax Advantage (G)||2373||23.7||19||16.8||19|
|Tata India Tax Savings Fund – Direct (G)||398||22.1||19.6||20.7|
|Wealth18.com updated on 24 Oct 2017||
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%.
If you have any queries related to ELSS Funds, or any other personal finance, feel free to use the comment box below.