The below table shows a list Of the ELSS Mutual Funds – Best Performing ELSS Mutual Funds Based on AUM, NAV and minimum SIP.
| Name | AUM (Cr) | NAV (Rs) | Minimum SIP (Rs) |
| Axis ELSS Tax Saver Fund | 32,174.34 | 96.69 | 500 |
| SBI Long Term Equity Fund | 25,723.50 | 425.69 | 500 |
| Mirae Asset ELSS Tax Saver Fund | 22,411.17 | 47.81 | 500 |
| DSP ELSS Tax Saver Fund | 14,981.09 | 137.84 | 500 |
| HDFC ELSS Tax saver | 14,671.37 | 1,340.09 | 500 |
| Aditya Birla SL ELSS Tax Saver Fund | 13,629.04 | 58.27 | 500 |
| Nippon India ELSS Tax Saver Fund | 13,354.46 | 122.09 | 500 |
| ICICI Pru ELSS Tax Saver Fund | 12,743.59 | 909.92 | 500 |
| Quant ELSS Tax Saver Fund | 9,486.28 | 354.29 | 500 |
| Canara Rob ELSS Tax Saver | 7,717.01 | 171.21 | 500 |
Table of Contents
Introduction To ELSS Mutual Funds
Axis ELSS Tax Saver Fund
Axis ELSS Tax Saver Direct Plan-Growth is an ELSS mutual fund scheme from Axis Mutual Fund. This fund has been operational for 12 years and 2 months, having been launched on January 1, 2013.
Axis ELSS Tax Saver Fund falls under the Equity Linked Savings Scheme (ELSS) category with an AUM of ₹32,174.34 crores, a 5-year CAGR of 13.5%, no exit load, and an expense ratio of 0.81%. The SEBI risk category is Very High.
Its asset allocation includes 94.93% in Equity, 4.36% in Debt and 0.71% in others.
SBI Long-Term Equity Fund
SBI Long Term Equity Fund Direct Plan-Growth is an ELSS mutual fund scheme from SBI Mutual Fund. This fund has been operational for 12 years and 2 months, having been launched on January 1, 2013.
SBI Long Term Equity Fund falls under the Equity Linked Savings Scheme (ELSS) category with an AUM of ₹25,723.50 crores, a 5-year CAGR of 26.28%, no exit load, and an expense ratio of 1.07%. The SEBI risk category is Very High.
Its asset allocation includes 90.32% in Equity, 0.15% in Debt and 9.51% in others.
Mirae Asset ELSS Tax Saver Fund
Mirae Asset ELSS Tax Saver Fund Direct-Growth is an ELSS mutual fund scheme from Mirae Asset Mutual Fund. This fund has been operational for 9 years and 3 months, having been launched on December 28, 2015.
Mirae Asset ELSS Tax Saver Fund falls under the Equity Linked Savings Scheme (ELSS) category with an AUM of ₹22,411.17 crores, a 5-year CAGR of 21.93%, no exit load, and an expense ratio of 0.6%. The SEBI risk category is Very High.
Its asset allocation includes 99.73% in Equity, Nil in Debt and 0.27% in others.
DSP ELSS Tax Saver Fund
DSP ELSS Tax Saver Direct Plan-Growth is an ELSS mutual fund scheme from DSP Mutual Fund. This fund has been operational for 12 years and 2 months, having been launched on January 1, 2013.
DSP ELSS Tax Saver Fund falls under the Equity Linked Savings Scheme (ELSS) category with an AUM of ₹14,981.09 crores, a 5-year CAGR of 23.23%, no exit load, and an expense ratio of 0.72%. The SEBI risk category is Very High.
Its asset allocation includes 95.31% in Equity, Nil in Debt and 4.69% in others.
HDFC ELSS Tax Saver Fund
HDFC ELSS Tax Saver Direct Plan-Growth is an ELSS mutual fund scheme from HDFC Mutual Fund. This fund has been operational for 12 years and 2 months, having been launched on January 1, 2013.
HDFC ELSS Tax Saver falls under the Equity Linked Savings Scheme (ELSS) category with an AUM of ₹14,671.37 crores, a 5-year CAGR of 24.47%, no exit load, and an expense ratio of 1.1%. The SEBI risk category is Very High.
Its asset allocation includes 92.66% in Equity, 0.35% in Debt and 6.99% in others.
Aditya Birla SL ELSS Tax Saver Fund
Aditya Birla Sun Life ELSS Tax Saver Direct-Growth is an ELSS mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been operational for 12 years and 2 months, having been launched on January 1, 2013.
Aditya Birla SL ELSS Tax Saver Fund falls under the Equity Linked Savings Scheme (ELSS) category with an AUM of ₹13,629.04 crores, a 5-year CAGR of 12.58%, no exit load, and an expense ratio of 1.02%. The SEBI risk category is Very High.
Its asset allocation includes 98.6% in Equity, Nil in Debt and 1.4% in others.
Nippon India ELSS Tax Saver Fund
Nippon India ELSS Tax Saver Fund Direct-Growth is an ELSS mutual fund scheme from Nippon India Mutual Fund. This fund has been operational for 12 years and 2 months, having been launched on January 1, 2013.
Nippon India ELSS Tax Saver Fund falls under the Equity Linked Savings Scheme (ELSS) category with an AUM of ₹13,354.46 crores, a 5-year CAGR of 20.55%, no exit load, and an expense ratio of 1.05%. The SEBI risk category is Very High.
Its asset allocation includes 99.75% in Equity, Nil in Debt and 0.25% in others.
ICICI Prudential ELSS Tax Saver Fund
ICICI Prudential ELSS Tax Saver Direct Plan-Growth is an ELSS mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been operational for 12 years and 2 months, having been launched on January 1, 2013.
ICICI Pru ELSS Tax Saver Fund falls under the Equity Linked Savings Scheme (ELSS) category with an AUM of ₹12,743.59 crores, a 5-year CAGR of 20.34%, no exit load, and an expense ratio of 1.13%. The SEBI risk category is Very High.
Its asset allocation includes 94.87% in Equity, Nil in Debt and 5.13% in others.
Quant ELSS Tax Saver Fund
Quant ELSS Tax Saver Fund Direct-Growth is an ELSS mutual fund scheme from Quant Mutual Fund. This fund has been operational for 12 years and 2 months, having been launched on January 7, 2013.
Quant ELSS Tax Saver Fund falls under the Equity Linked Savings Scheme (ELSS) category with an AUM of ₹9,486.28 crores, a 5-year CAGR of 32.73%, no exit load, and an expense ratio of 0.5%. The SEBI risk category is Very High.
Its asset allocation includes 92.04% in Equity, Nil in Debt and 7.96% in others.
Canara Robeco ELSS Tax Saver Fund
Canara Robeco ELSS Tax Saver Direct-Growth is an ELSS mutual fund scheme from Canara Robeco Mutual Fund. This fund has been operational for 12 years and 2 months, having been launched on January 1, 2013.
Canara Rob ELSS Tax Saver falls under the Equity Linked Savings Scheme (ELSS) category with an AUM of ₹7,717.01 crores, a 5-year CAGR of 20.04%, no exit load, and an expense ratio of 0.58%. The SEBI risk category is Very High.
Its asset allocation includes 95.51% in Equity, Nil in Debt and 4.49% in others.
What Is ELSS Mutual Fund?
ELSS (Equity Linked Savings Scheme) Mutual Fund is a type of equity mutual fund that offers tax benefits under Section 80C of the Income Tax Act. These funds invest primarily in equity and equity-related securities, aiming to provide capital appreciation while offering tax deductions.
ELSS funds have a mandatory lock-in period of 3 years, which is the shortest among all tax-saving instruments under Section 80C. This lock-in period starts from the date of allotment of units for each investment.
These funds are popular among investors looking to save taxes while potentially earning higher returns compared to traditional tax-saving options. ELSS funds also offer the benefits of professional fund management and equity market exposure.
Features Of Best ELSS Mutual Funds
The main features of Best ELSS Mutual Funds include tax benefits, equity exposure, a shorter lock-in period compared to other tax-saving instruments, the potential for high returns and professional fund management. These features make ELSS an attractive option for tax-saving and wealth creation.
1. Tax Benefits: ELSS funds offer tax deductions up to ₹1.5 lakh under Section 80C of the Income Tax Act, helping investors reduce their tax liability.
2. Equity Exposure: These funds primarily invest in equity and equity-related securities, offering the potential for capital appreciation over the long term.
3. Short Lock-in Period: ELSS has a mandatory lock-in period of 3 years, which is the shortest among all tax-saving instruments under Section 80C.
4. High Return Potential: Being equity-oriented, ELSS funds have the potential to generate higher returns compared to traditional tax-saving options over the long term.
5. Professional Management: ELSS funds are managed by experienced fund managers who make informed investment decisions based on market research and analysis.
Best ELSS Mutual Fund
The table below shows the Best ELSS Mutual Funds Based on the lowest to highest expense ratio.
| Name | Expense Ratio (%) | Minimum SIP (Rs) |
| Quant ELSS Tax Saver Fund | 0.5 | 500 |
| Canara Rob ELSS Tax Saver | 0.58 | 500 |
| Mirae Asset ELSS Tax Saver Fund | 0.6 | 500 |
| Parag Parikh ELSS Tax Saver Fund | 0.63 | 1,000 |
| Bandhan ELSS Tax Saver Fund | 0.68 | 500 |
| Motilal Oswal ELSS Tax Saver Fund | 0.7 | 500 |
| Kotak ELSS Tax Saver Fund | 0.71 | 500 |
| DSP ELSS Tax Saver Fund | 0.72 | 500 |
| Tata ELSS Tax Saver Fund | 0.74 | 500 |
| Invesco India ELSS Tax Saver Fund | 0.76 | 500 |
Top ELSS Mutual Fund
The table below shows the Top ELSS Mutual Funds Based on the Highest 3Y CAGR.
| Name | CAGR 3Y (Cr) | Minimum SIP (Rs) |
| SBI Long Term Equity Fund | 24.24 | 500 |
| HDFC ELSS Tax saver | 21.83 | 500 |
| Motilal Oswal ELSS Tax Saver Fund | 21.74 | 500 |
| DSP ELSS Tax Saver Fund | 18.62 | 500 |
| Parag Parikh ELSS Tax Saver Fund | 18.29 | 1,000 |
| Franklin India ELSS Tax Saver Fund | 18.09 | 500 |
| HSBC ELSS Tax saver Fund | 16.44 | 500 |
| Quant ELSS Tax Saver Fund | 16.18 | 500 |
| Nippon India ELSS Tax Saver Fund | 16.02 | 500 |
| Kotak ELSS Tax Saver Fund | 15.44 | 500 |
ELSS Mutual Funds List
The table below shows the ELSS Mutual Funds List Based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.
| Name | AMC | Exit Load (%) |
| Axis ELSS Tax Saver Fund | Axis Asset Management Company Ltd. | 0 |
| SBI Long Term Equity Fund | SBI Funds Management Limited | 0 |
| Mirae Asset ELSS Tax Saver Fund | Mirae Asset Investment Managers (India) Private Limited | 0 |
| DSP ELSS Tax Saver Fund | DSP Investment Managers Private Limited | 0 |
| HDFC ELSS Tax saver | HDFC Asset Management Company Limited | 0 |
| Aditya Birla SL ELSS Tax Saver Fund | Aditya Birla Sun Life AMC Limited | 0 |
| Nippon India ELSS Tax Saver Fund | Nippon Life India Asset Management Limited | 0 |
| ICICI Pru ELSS Tax Saver Fund | ICICI Prudential Asset Management Company Limited | 0 |
| Quant ELSS Tax Saver Fund | Quant Money Managers Limited | 0 |
| Canara Rob ELSS Tax Saver | Canara Robeco Asset Management Company Limited | 0 |
ELSS Mutual Funds Returns
The table below shows ELSS Mutual Funds Returns Based on 1Y return
| Name | Absolute Returns – 1Y (%) | Minimum SIP (Rs) |
| DSP ELSS Tax Saver Fund | 9.93 | 500 |
| HSBC ELSS Tax saver Fund | 8.96 | 500 |
| Parag Parikh ELSS Tax Saver Fund | 8.92 | 1,000 |
| Motilal Oswal ELSS Tax Saver Fund | 7.66 | 500 |
| HDFC ELSS Tax saver | 6.73 | 500 |
| SBI Long Term Equity Fund | 6.4 | 500 |
| Axis ELSS Tax Saver Fund | 5.98 | 500 |
| Tata ELSS Tax Saver Fund | 5.82 | 500 |
| UTI ELSS Tax Saver Fund | 5.15 | 500 |
| Invesco India ELSS Tax Saver Fund | 5 | 500 |
Historical Performance Of Best ELSS Mutual Funds
The table below shows the Historical Performance Of the Best ELSS Mutual Funds Based on 5Y return
| Name | CAGR 5Y (Cr) | Minimum SIP (Rs) |
| Quant ELSS Tax Saver Fund | 32.73 | 0 |
| SBI Long Term Equity Fund | 26.28 | 0 |
| Parag Parikh ELSS Tax Saver Fund | 24.83 | 0 |
| HDFC ELSS Tax saver | 24.47 | 0 |
| Bandhan ELSS Tax Saver Fund | 23.99 | 0 |
| DSP ELSS Tax Saver Fund | 23.23 | 0 |
| Franklin India ELSS Tax Saver Fund | 22.37 | 0 |
| Mirae Asset ELSS Tax Saver Fund | 21.93 | 0 |
| Motilal Oswal ELSS Tax Saver Fund | 21 | 0 |
| Nippon India ELSS Tax Saver Fund | 20.55 | 0 |
Factors To Consider When Investing In ELSS Mutual Funds
When investing in ELSS Mutual Funds, consider the fund’s historical performance, expense ratio, fund manager’s expertise, investment strategy and risk tolerance. These factors can significantly impact the fund’s performance and suitability for your investment portfolio.
1. Historical Performance: Evaluate the fund’s performance over different market cycles, comparing it with both its benchmark and peer funds.
2. Expense Ratio: Lower expense ratios can lead to better long-term returns. Compare ratios across different ELSS funds.
3. Fund Manager Expertise: Research the fund manager’s experience and track record in managing equity funds, particularly ELSS funds.
4. Investment Strategy: Understand the fund’s investment approach, including its focus on large-cap, mid-cap, or multi-cap stocks.
5. Risk Tolerance: Assess your risk tolerance and ensure it aligns with the fund’s risk profile, as ELSS funds invest primarily in equities.
How To Invest In ELSS Mutual Funds?
To invest in ELSS Mutual Funds, start by researching and selecting funds that align with your investment goals and risk tolerance. Consider factors like historical performance, expense ratio and fund manager expertise. Determine the amount you wish to invest, keeping in mind the ₹1.5 lakh limit for tax deduction under Section 80C.
Open an account with Alice Blue. Complete the necessary KYC (Know Your Customer) procedures. Choose your preferred ELSS fund and decide whether you want to invest via lump sum or through a Systematic Investment Plan (SIP).
If opting for SIP, set up automatic transfers from your bank account. Remember, each SIP instalment will have its 3-year lock-in period. Keep track of your investments and review their performance periodically. Consider increasing your investments if your financial situation allows.
Impact Of Market Trends On Top ELSS Mutual Funds
Market trends significantly impact Top ELSS Mutual Funds as these funds primarily invest in equity markets. Economic conditions, policy changes, global events and sector-specific developments can all influence the performance of ELSS funds, affecting their returns and NAV.
During bull markets, ELSS funds often perform well, potentially delivering higher returns. In bear markets, they may experience volatility and temporary declines. However, the mandatory 3-year lock-in period helps investors ride out short-term market fluctuations.
How Top ELSS Mutual Funds Perform In Volatile Markets?
Top ELSS Mutual Funds can experience significant volatility during turbulent market conditions, as they primarily invest in equity markets. However, their performance during volatile periods can vary based on the fund manager’s strategy and the specific stocks in the portfolio.
During high volatility, some ELSS funds may outperform by focusing on quality stocks or defensive sectors. The mandatory 3-year lock-in period can be beneficial during volatility, as it prevents panic selling and allows time for potential market recovery.
ELSS Mutual Fund Benefits
The main benefits of ELSS Mutual Funds include tax savings, the potential for high returns, equity market exposure, professional fund management and the shortest lock-in period among tax-saving instruments. These features make ELSS an attractive option for tax-efficient wealth creation.
1. Tax Savings: ELSS funds offer tax deductions up to ₹1.5 lakh under Section 80C of the Income Tax Act, reducing your overall tax liability.
2. High Return Potential: Being equity-oriented, ELSS funds have the potential to generate higher returns compared to traditional tax-saving options over the long term.
3. Equity Exposure: These funds provide exposure to equity markets, offering the opportunity to participate in the growth of the Indian economy.
4. Professional Management: ELSS funds are managed by experienced fund managers who make informed investment decisions based on market research and analysis.
5. Short Lock-in Period: The 3-year lock-in period for ELSS is the shortest among all tax-saving instruments under Section 80C, providing relatively quicker access to funds.
Risks Of Investing In ELSS Mutual Funds
The main risks of investing in ELSS Mutual Funds include market risk, volatility, potential for capital loss, concentration risk and liquidity constraints due to the lock-in period. Investors should be aware of these risks before allocating funds to ELSS.
1. Market Risk: As equity-oriented funds, ELSS are subject to market fluctuations, which can lead to potential losses, especially in the short term.
2. Volatility: Equity markets can be highly volatile, leading to significant fluctuations in the fund’s NAV and returns.
3. Capital Loss: There’s a risk of capital loss if the market value of the fund’s holdings decreases significantly.
4. Concentration Risk: Some ELSS funds may have concentrated portfolios, increasing risk if those specific sectors or stocks underperform.
5. Liquidity Constraints: The mandatory 3-year lock-in period limits liquidity, which could be problematic if you need funds urgently.
Contribution Of ELSS Mutual Funds To Portfolio Diversification
ELSS Mutual Funds can contribute significantly to portfolio diversification by providing exposure to equity markets within a tax-saving framework. These funds typically invest across various sectors and market capitalizations, offering a diversified equity portfolio through a single investment.
By including ELSS in a portfolio, investors can potentially enhance their overall returns while managing risk. The equity exposure provided by ELSS can complement other investments like fixed deposits or debt funds, creating a balanced portfolio aligned with long-term financial goals.
Who Should Invest In ELSS Mutual Funds?
ELSS Mutual Funds are suitable for investors looking to save taxes while also aiming for long-term wealth creation through equity markets. They are ideal for individuals in higher tax brackets who haven’t exhausted their ₹1.5 lakh limit under Section 80C and are comfortable with equity-related risks.
These funds are best suited for investors with a long-term investment horizon (at least 5-7 years beyond the mandatory 3-year lock-in) and a moderate to high-risk tolerance. First-time equity investors can also consider ELSS as an entry point into equity markets.
ELSS Mutual Funds Taxation
ELSS Mutual Funds offer tax benefits at the time of investment, with deductions up to ₹1.5 lakh under Section 80C. At the time of redemption, long-term capital gains (LTCG) exceeding ₹1 lakh per financial year are taxed at 10% without indexation benefit.
Short-term capital gains are not applicable due to the mandatory 3-year lock-in period. Dividends from ELSS funds are taxable in the hands of investors at their applicable income tax slab rates. It’s advisable to consult a tax professional for personalized advice.
Impact Of Fund Manager Expertise On ELSS Mutual Funds Performance
Fund manager expertise significantly impacts ELSS Mutual Funds performance. Skilled managers can potentially generate better returns through effective stock selection, sector allocation, and market timing. Their ability to navigate different market cycles and identify growth opportunities is crucial for long-term fund performance.
Experienced managers may also better manage risks associated with equity investments, potentially leading to more consistent returns over time. Their expertise in understanding tax implications and managing the fund within ELSS guidelines is also vital for optimizing returns while maintaining tax efficiency.
FAQs – Best Performing ELSS Mutual Funds
An ELSS (Equity Linked Savings Scheme) mutual fund is a type of equity fund that primarily invests in stocks and equity-related instruments. It offers tax benefits under Section 80C of the Income Tax Act and has a mandatory lock-in period of three years.
Best ELSS Mutual Funds #1: Axis ELSS Tax Saver Fund
Best ELSS Mutual Funds #2: SBI Long-Term Equity Fund
Best ELSS Mutual Funds #3: Mirae Asset ELSS Tax Saver Fund
Best ELSS Mutual Funds #4: DSP ELSS Tax Saver Fund
Best ELSS Mutual Funds #5: HDFC ELSS Tax saver
These funds are listed based on the Highest AUM.
The top ELSS mutual funds based on expense ratio are Quant ELSS Tax Saver Fund, Canara Rob ELSS Tax Saver, Mirae Asset ELSS Tax Saver Fund, Parag Parikh ELSS Tax Saver Fund and Bandhan ELSS Tax Saver Fund. These funds provide tax benefits while offering diversified equity exposure for long-term growth.
ELSS Mutual Funds can be redeemed after the completion of the 3-year lock-in period. To redeem, log into your account with Alice Blue or the fund house, select the ELSS fund, specify the number of units or amount to redeem and process the redemption request.
The highest return ELSS mutual funds based on 3-year returns are SBI Long Term Equity Fund, Quant ELSS Tax Saver Fund, HDFC ELSS Tax Saver, DSP ELSS Tax Saver Fund and Nippon India ELSS Tax Saver Fund. These funds offer strong growth potential with attractive tax-saving benefits.
ELSS Mutual Funds invest primarily in equity markets. They offer tax deductions up to ₹1.5 lakh under Section 80C. Each investment has a 3-year lock-in period. Returns are subject to market performance and are taxed as long-term capital gains.
The main difference between ELSS (Equity Linked Savings Scheme) and regular mutual funds is that ELSS offers tax benefits under Section 80C of the Income Tax Act, with a mandatory 3-year lock-in period, whereas other mutual funds do not provide tax exemptions.
To invest in ELSS Mutual Funds, research and select a suitable fund. Open an account with Alice Blue, complete KYC requirements and start investing through lump sum or SIP options. Remember the ₹1.5 lakh limit for tax deduction under Section 80C.
ELSS Mutual Funds invest in equity markets and carry associated risks. While they offer the potential for high returns, they can be volatile. They are considered relatively safe for long-term investors who can tolerate short-term market fluctuations.
ELSS Mutual Funds offers tax deductions up to ₹1.5 lakh under Section 80C. Long-term capital gains exceeding ₹1 lakh per year are taxed at 10%. Dividends are taxable at the investor’s income tax slab rate. Consult a tax professional for personalized advice.
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Disclaimer: Please note that mutual fund performances are subject to market risks, and it’s always essential to review the latest scheme-related documents and consult with a financial advisor before making any investment decisions.
