January 15, 2024

Top 5 Equity-Linked Savings Scheme (ELSS) in India

Hello, wise investors!

Equity Linked Savings Scheme in India (ELSS) are a popular choice for investors looking to save on taxes while potentially earning higher returns compared to traditional tax-saving instruments. To make your decision easier, I’ve put together a list of the ELSS Tax Saving Mutual Funds to Invest in India, perfect for anyone looking to make their savings work harder for them. Let's dive in and find the best fit for your hard-earned money!

1. Axis Long Term Equity Fund

Performance: This fund has consistently outperformed its peers and the benchmark index over the past five years. It has a strong track record of delivering high returns, making it a preferred choice for many investors.

Risk Factor: It falls in the moderately high-risk category, primarily investing in large-cap and some mid-cap stocks.

Unique Features: The fund focuses on companies with strong growth potential and sustainable business models, with a keen eye on long-term capital appreciation.

2. DSP Tax Saver Fund

Performance: Known for its aggressive investment strategy, this fund has shown remarkable performance, especially in bullish market scenarios. It has a history of robust growth rates.

Risk Factor: This fund takes on a higher level of risk by investing in a mix of large-cap and mid-cap stocks, aiming for higher growth.

Unique Features: It stands out for its dynamic asset allocation, adapting quickly to changing market conditions.

3. Mirae Asset Tax Saver Fund

Performance: With a shorter track record compared to others, this fund has nonetheless made a mark with its impressive performance, especially in the mid-cap space.

Risk Factor: It carries a moderately high risk, with investments spread across various sectors and market capitalizations.

Unique Features: It's known for its well-researched stock selection and is preferred by investors looking for exposure to mid-cap stocks.

4. Aditya Birla Sun Life Tax Relief 96

Performance: This fund has a long-standing history in the market, with consistent performance over the years. It's known for its stability and reliability.

Risk Factor: It's categorized as moderately risky, with a diversified portfolio that balances risk and return.

Unique Features: The fund has a strong focus on sectors like healthcare and financial services, offering a unique portfolio mix.

5. Invesco India Tax Plan

Performance: It's a well-performing fund in the ELSS category, known for its steady returns and effective fund management.

Risk Factor: This fund falls into the moderate risk category, with a balanced approach to equity investment.

Unique Features: The fund is recognized for its consistent performance across market cycles, making it a safe bet for conservative investors.

ELSS funds are a great way to save taxes under Section 80C of the Income Tax Act, but they come with a lock-in period of 3 years. As with any investment, it's crucial to understand your risk tolerance and investment goals before choosing a fund. The above-mentioned funds have been top performers in their category, but it's advisable to conduct thorough research or consult a financial advisor for personalized advice.

Happy investing, and here's to making smart, tax-saving investment choices!