Best ELSS Funds- Best Tax Saving Mutual Fund | Credit Help India


The mutual funds of ELSS are also known as the Mutual Funds for Saving Tax. In accordance with Section 80c of the Income Tax Act of 1961, tax deductions of up to Rs 1,50.000 can be claimed. Under this section, ELSS is the best investment choice. You gain the double advantage over time from tax reduction and wealth building by investing in such mutual funds.

The EQL-linked savings scheme (ELSS) is a diversified category of mutual fund, generally referred to as the tax saving fund. While their maximum exposure to equities and equity-based assets is also invested as part of the corpus in loan instruments.

ELSS is protected by Section 80c and hence tax deductions of up to Rs 1.50 thousand per year may be claimed. This helps you to save taxes up to Rs 46,800 every year. These funds are provided with an obligatory three-year lock-in term, the shortest of the 80C alternatives.


The table below shows the top-performing ELSS mutual funds based on the past five year returns:


3-Year Performance

5-Year Performance

Mirae Asset Tax Saver Fund - Direct Plan – Growth

22.88 %

20.09 %

Mirae Asset Tax Saver Fund

21.13 %

18.27 %

BOI AXA Tax Advantage Fund - Direct Plan – Growth

20.01 %

15.68 %

Canara Robeco Equity Tax Saver Fund - Direct Plan - Growth

18.67 %

19.52 %

IDFC Tax Advantage (ELSS) Fund-Growth-Direct Plan

18.24 %

13.68 %

DSP Tax Saver Fund - Direct Plan – Growth

17.62 %

16.57 %

Canara Robeco Equity Tax Saver Fund

17.62 %

18.37 %

Kotak Tax Saver Fund - Direct Plan - Growth

17.05 %

16.37 %

Tata India Tax Saving Fund- Direct Plan – Growth

16.99 %

11.89 %

Invesco India Tax Plan - Direct Plan - Growth

16.9 %

14.54 %


Any person or HUF who wishes to save up to 46,800 Rs per year on taxes is eligible to participate in ELSS. However, these funds are only available to individuals who are prepared to face certain risks and can continue to be invested in ELSS for at least the obligatory three-year lock-in term.

Investors are urged to remain involved for at least 5 years in order to get the highest rewards from mutual funds. It's a decent time for five years. You will allow your investments the time to complete the market cycles and deliver good long-term returns.

Young investors might invest with a long-term view in the first years of their professional work. For youthful investors, ELSS is ideally suited since it has time to release the compounding strength and to make significant returns while reducing taxes of up to Rs 46,800 per annum.

Advantages of Investing in ELSS Funds

1.Dual benefit of tax rebate and wealth growth.

2.Shortest lock-in period among Section 80C options.

3.Potential to earn inflation-beating returns.

4.Expert money management.


ELSS mutual funds have the same levels and types of risks as any other equity mutual fund, as they are equity-oriented products. However, these risks may be largely minimised via a minimum of five years of investment. Furthermore, the obligatory three year lock-in period greatly contributes to risk reduction.


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