January 23, 2024

Top 5 Tax-Saving Mutual Funds in India

Tax-Saving Mutual Funds

Hello, financial enthusiasts and prudent savers!

As we navigate the vibrant world of investments, it's crucial to focus on options that not only offer good returns but also provide tax benefits. Today, I'm diving into the realm of tax-saving mutual funds in India, often referred to as Equity-Linked Savings Schemes (ELSS). These funds not only offer the potential for high returns but also come with the added advantage of tax deductions under Section 80C of the Income Tax Act. Let's explore the top 5 tax-saving mutual funds that have been making waves in the Indian investment landscape.

1. HDFC Tax Saver Fund

  • Overview: Known for its robust performance and experienced fund management, HDFC Tax Saver Fund has been a preferred choice for many investors.
  • Performance: It boasts a track record of consistent returns and has a diversified portfolio across various sectors.
  • Why Consider: Ideal for those looking for a mix of value and growth investing.

2. Axis Long Term Equity Fund

  • Overview: This fund is popular for its focus on companies with strong growth potential.
  • Performance: It has consistently outperformed its peers and benchmarks over the long term.
  • Why Consider: Suitable for investors aiming for long-term capital appreciation along with tax benefits.

3. DSP Tax Saver Fund

  • Overview: This fund is recognized for its dynamic investment strategy, adapting to changing market conditions.
  • Performance: It has a well-balanced approach, investing in both large-cap and mid-cap stocks.
  • Why Consider: Good choice for investors looking for a balance between stability and growth.

4. Aditya Birla Sun Life Tax Relief 96

  • Overview: One of the oldest ELSS funds in the market, known for its stable management.
  • Performance: It has delivered impressive returns with a focus on multi-cap investing.
  • Why Consider: Appeals to those who prefer a fund with a long-standing market presence.

5. ICICI Prudential Long Term Equity Fund

  • Overview: This fund is characterized by its strategic stock selection and diversified portfolio.
  • Performance: It has shown resilience during market fluctuations and offers consistent growth.
  • Why Consider: An ideal option for investors who prioritize risk-adjusted returns.

Key Takeaways

  • Tax Benefits: Investments in these funds are eligible for tax deductions up to ₹1.5 lakh under Section 80C.
  • Lock-in Period: ELSS funds come with a lock-in period of 3 years, the shortest among tax-saving options under Section 80C.
  • Investment Strategy: Assess your risk tolerance and investment horizon before choosing the right fund.


Tax Saving Mutual Funds are an excellent way to save taxes for Employees in India, while aiming for wealth accumulation over the long term. As always, I recommend consulting with a financial advisor to align these options with your individual financial goals and market dynamics.

Stay tuned to Dreamer Growth for more insights into making your money work for you in the most efficient way!

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