Best ELSS Funds - Consider the best performing elss mutual funds to invest in 2023 with Scripbox.com. Find the list of best elss funds in India on the basis of Returns, Latest Nav, Ratings, Performance etc.
Learn how Scripbox Recommends funds| Fund Name | Scripbox Opinion | Till Date CAGR | |
|---|---|---|---|
15.7% | 14% | ||
16.3% | 17% | ||
16.6% | 13.7% | ||
19.3% | 17.7% | ||
17.7% | 18.9% | ||
14.5% | 12.3% | ||
20.1% | 17.6% | ||
17.6% | 13.3% | ||
33.2% | 14.7% | ||
13.7% | 13.5% | ||
12.9% | 14.2% | ||
14.2% | 19% | ||
16% | 11% | ||
11.1% | 12.9% | ||
16% | 10.4% | ||
15.5% | - | ||
7.1% | 14.9% | ||
12.1% | 12.6% | ||
9.9% | 10.7% | ||
11% | 13.3% |
Invest in these funds with automated best practices like quarterly scans, updates & tax-optimised withdrawals
Although the benefits of investing in an ELSS mutual fund are attractive to any investor there are a few parameters that you must consider before investing. The most important parameter for any investor is to match his/ her investment goal with the selected mutual funds. The selected mutual funds must fulfill your goal for a successful investment. To make a well-informed decision you must consider factors like the fund’s historical performance, returns, latest NAV, exit load, and fund manager’s portfolio performance.
| Fund Name | 3 Year Returns | Lock-In |
| Bank of India Tax Advantage Fund | 23.60% | 3 Year |
| IDFC Tax Advantage ELSS Fund | 23.40% | 3 Year |
| Canara Robeco Equity Tax Saver fund | 21.10% | 3 Year |
| Parag Parikh Tax Saver Fund | 23.90% | 3 Year |
| Mirae Asset Tax Saver Fund (G) | 19.20% | 3 Year |
| DSP Tax Saver Fund | 18.30% | 3 Year |
| ICICI Prudential Long Term Equity Fund Tax Saving | 17% | 3 Year |
| HDFC TaxSaver fund | 17.20% | 3 Year |
| Axis Long Term Equity Fund | 12.90% | 3 Year |
| Nippon India Tax Saver ELSS Fund | 12.70% | 3 Year |
Equity Linked Savings Scheme (ELSS) is a kind of mutual fund scheme that invests in equity and equity-related instruments. ELSS comes with a lock-in of 3 years and provides a tax benefit up to 1.5 lakhs in a year under section 80C of the Income Tax Act.
Investments in ELSS can be made through lump-sum payments or SIP. If payments are made through SIP, the lock-in period of 3 years is taken for each SIP.
Net asset value NAV is the market price of the fund. It is important because it represents the worth of each share of the fund. One can say just like shares have a share price, mutual funds have a NAV to represent it’s worth.
Investing in ELSS mutual funds offers tax benefits under Section 80C of the Income Tax Act, 1961. As per Section 80C, investments up to INR 1,50,000 in a financial year in ELSS mutual funds qualify for tax exemption. Thus, investing in ELSS mutual funds helps you save on taxes. You will be able to save up to INR 46,800 in a year on taxes by investing in ELSS mutual funds. Also, it is important to note that additional investments (over and above INR 1,50,000 per year) do not qualify for a tax deduction.
Evaluating top mutual funds to invest can be a tricky task. One can check the below parameters in order to evaluate the funds:
When it comes to financial planning, managing tax-saving investment schemes, and picking the best-suited investment scheme is crucial. It depends on the investor, his investment objectives, knowledge of the investment plans and other factors
To help you decide on ELSS vs other tax saving schemes, we have listed a comparison below:
| Investment Plans | Returns | Lock-in Period | Tax Implications |
| ELSS Funds | 15% to 18% | 3 years | Investment- Tax Deduction Income- Partially Taxable |
| Tax Saving Fixed Deposits | 6% to 7% differs from bank to bank | 5 years | Investment- Tax Deduction Income- Taxable, if interest > Rs 10,000 Added to taxable income |
| Public Provident Fund (PPF) | 7% to 8% | 15 years | Investment- Tax Deduction Income- Non-Taxable |
| National Pension System (NPS) | 8% to 10% | Till Retirement | Investment- Tax Deduction Income- Partially Taxable |
| National Savings Certificate | 7% to 8% | 5 years | Investment- Tax Deduction Income- Taxable |
Lock-in period is the time period for which investments are required to be made to avail of the tax benefits. In the case of ELSS, it is 3 years.
When we make a SIP, a fixed amount is deducted monthly towards the investment. In an ELSS, each SIP made is locked in for a period of 3 years if the investor wants to avail of the tax benefits.
It is very convenient and easy nowadays to invest through SIP, you only need to link your saving account to the fund manager. Then provide an instruction to deduct investment amount every month from your saving account.
You can use Scripbox’s SIP calculator to estimate the wealth gained and maturity of the investments made through SIP to help you in investment planning
The maximum tax advantage that can be availed by investing in ELSS funds is 1.5 lakhs under section 80C of the income tax act. Any amount invested above 1.5 lakh would not qualify as an eligible investment for the purpose of claiming a tax deduction.
Like all other market-linked funds, ELSS funds are also subject to market risk as it invests in equity and equity-related instruments.
This would not be a good option as this will lock your investment for 3 years without giving any tax advantage. Your taxable income would remain the same due to no further deductions. One can instead invest in other mutual funds that provide better returns like equity funds, hybrid fund.
Individuals who are looking for inflation-beating returns in the long run and which provides tax benefit should invest in ELSS.
