Top Performing ELSS Funds in 10 Years

The table below shows a list of the Top Performing ELSS Funds in 10 Years based on AUM, NAV, and minimum SIP.

Introduction to Top Performing ELSS Funds in 10 Years

SBI Long Term Equity Fund

SBI Long Term Equity Fund is an ELSS mutual fund scheme from SBI Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

SBI Long Term Equity Fund falls under the ELSS category with an AUM of ₹27,527.24 crores, a 5-year CAGR of 28.75%, no exit load, and an expense ratio of 0.95%. The SEBI risk category is Very High. Its asset allocation includes 90.18% in Equity and 9.82% in Cash & Equivalents.

Mirae Asset ELSS Tax Saver Fund

Mirae Asset ELSS Tax Saver Fund is an ELSS mutual fund scheme from Mirae Asset Mutual Fund. This fund has been operational since December 28, 2015.

Mirae Asset ELSS Tax Saver Fund falls under the ELSS category with an AUM of ₹25,617.48 crores, a 5-year CAGR of 25.21%, no exit load, and an expense ratio of 0.58%. The SEBI risk category is Very High. Its asset allocation includes 98.56% in Equity and 1.44% in Cash & Equivalents.

DSP ELSS Tax Saver Fund

DSP ELSS Tax Saver Fund is an ELSS mutual fund scheme from DSP Mutual Fund. This fund has been operational for 11 years and 6 months, having been launched on January 1, 2013.

DSP ELSS Tax Saver Fund falls under the ELSS category with an AUM of ₹17,267.83 crores, a 5-year CAGR of 25.98%, no exit load, and an expense ratio of 0.69%. The SEBI risk category is Very High. Its asset allocation includes 97.64% in Equity, 2.16% in Cash & Equivalents, and 0.19% in Rights.

Quant ELSS Tax Saver Fund

Quant ELSS Tax Saver Fund is an ELSS mutual fund scheme from Quant Mutual Fund. This fund has been operational since January 7, 2013.

Quant ELSS Tax Saver Fund falls under the ELSS category with an AUM of ₹10,527.57 crores, a 5-year CAGR of 39.43%, no exit load, and an expense ratio of 0.71%. The SEBI risk category is Very High. Its asset allocation includes 96.54% in Equity, 3.40% in Cash & Equivalents, and 0.06% in Rights.

Canara Robeco ELSS Tax Saver Fund

Canara Robeco ELSS Tax Saver Fund is an ELSS mutual fund scheme from Canara Robeco Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Canara Robeco ELSS Tax Saver Fund falls under the ELSS category with an AUM of ₹8,875.70 crores, a 5-year CAGR of 25.40%, no exit load, and an expense ratio of 0.51%. The SEBI risk category is Very High. Its asset allocation includes 96.10% in Equity and 3.90% in Cash & Equivalents.

Bandhan ELSS Tax Saver Fund

Bandhan ELSS Tax Saver Fund is an ELSS mutual fund scheme from Bandhan Mutual Fund. This fund has been operational for 11 years and 6 months, having been launched on January 1, 2013.

Bandhan ELSS Tax Saver Fund falls under the ELSS category with an AUM of ₹7,178.74 crores, a 5-year CAGR of 27.06%, no exit load, and an expense ratio of 0.63%. The SEBI risk category is Very High. Its asset allocation includes 97.48% in Equity, 2.50% in Cash & Equivalents, and 0.02% in Rights.

Parag Parikh ELSS Tax Saver Fund

Parag Parikh ELSS Tax Saver Fund is an ELSS mutual fund scheme from Parag Parikh Mutual Fund. This fund has been operational since July 24, 2019.

Parag Parikh ELSS Tax Saver Fund falls under the ELSS category with an AUM of ₹4,016.58 crores, a 5-year CAGR of 26.37%, no exit load, and an expense ratio of 0.62%. The SEBI risk category is Very High. Its asset allocation includes 83.33% in Equity, 9.17% in Cash & Equivalents, 7.38% in Certificates of Deposit, and 0.12% in Treasury Bills.

Bank of India ELSS Tax Saver Fund

Bank of India ELSS Tax Saver Fund is an ELSS mutual fund scheme from Bank of India Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Bank of India ELSS Tax Saver Fund falls under the ELSS category with an AUM of ₹1,484.56 crores, a 5-year CAGR of 30.90%, no exit load, and an expense ratio of 0.96%. The SEBI risk category is Very High. Its asset allocation includes 99.59% in Equity, 0.38% in Cash & Equivalents, and 0.04% in Treasury Bills.

SBI LT Advantage Fund-VI

SBI LT Advantage Fund-VI is an ELSS mutual fund scheme from SBI Mutual Fund. This fund has been operational for 3 years and 1 month, having been launched on August 12, 2021.

SBI LT Advantage Fund-VI falls under the ELSS category with an AUM of ₹305.37 crores, a 5-year CAGR of 27.43%, no exit load, and an expense ratio of 0%. The SEBI risk category is Very High. Its asset allocation includes 97.66% in Equity and 2.34% in Cash & Equivalents.

JM ELSS Tax Saver Fund

JM ELSS Tax Saver Fund is an ELSS mutual fund scheme from JM Financial Mutual Fund. This fund has been operational for 11 years and 6 months, having been launched on January 1, 2013.

JM ELSS Tax Saver Fund falls under the ELSS category with an AUM of ₹173.45 crores, a 5-year CAGR of 27.00%, no exit load, and an expense ratio of 1.13%. The SEBI risk category is Very High. Its asset allocation includes 97.32% in Equity, 2.37% in Cash & Equivalents, and 0.31% in Rights.

What Are ELSS Funds?

ELSS (Equity Linked Savings Scheme) Funds are tax-saving mutual funds that primarily invest in equity and equity-related securities. They offer tax deductions under Section 80C of the Income Tax Act while providing the potential for capital appreciation through equity market exposure.

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 diversified equity market exposure.

Features Of Top Performing ELSS Funds in 10 Years

The main features of Top Performing ELSS Funds in 10 Years include consistent long-term returns, tax benefits, equity market exposure, professional management, and the potential for wealth creation. These funds have demonstrated strong performance over an extended period.

• Consistent Returns: These funds have shown the ability to generate consistent returns over a 10-year period, outperforming their benchmarks and peers.

• 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.

• Equity Exposure: These funds primarily invest in equity and equity-related securities, offering the potential for capital appreciation over the long term.

• Professional Management: Top-performing ELSS funds are managed by experienced fund managers with a proven track record in navigating different market cycles.

• Wealth Creation: With a 10-year track record of strong performance, these funds have demonstrated their potential for long-term wealth creation.

Best Performing ELSS Funds in 10 Years

The table below shows the Best Performing ELSS Funds in 10 Years based on the lowest to highest expense ratio.

Top Performing ELSS Funds in 10 Years In India

The table below shows the Top Performing ELSS Funds in 10 Years In India based on the Highest 3Y CAGR.

Top Performing ELSS Funds in 10 Years 

The table below shows the Top Performing ELSS Funds in 10 Years based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Factors To Consider When Investing In Top Performing ELSS Funds in 10 Years

The main factors to consider when investing in Top Performing ELSS Funds in 10 Years include historical performance, fund manager expertise, expense ratio, investment strategy, and risk-adjusted returns. These factors can significantly impact your investment outcomes.

• Historical Performance: Evaluate the fund’s performance over different market cycles, comparing it with both its benchmark and peer funds over the 10-year period.

• Fund Manager Expertise: Research the fund manager’s experience and track record in managing ELSS funds, particularly their ability to generate consistent long-term returns.

• Expense Ratio: Compare expense ratios across different ELSS funds. Lower expense ratios can lead to better long-term returns.

• Investment Strategy: Understand the fund’s investment approach, including its focus on large-cap, mid-cap, or multi-cap stocks, and how it has evolved over time.

• Risk-Adjusted Returns: Assess the fund’s risk-adjusted returns using metrics like the Sharpe ratio to understand how well the fund balances risk and returns.

How To Invest In Top Performing ELSS Funds in 10 Years?

To invest in Top Performing ELSS Funds in 10 Years, start by researching funds with a strong long-term track record. Consider factors like consistent performance, fund manager expertise, and expense ratios. 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 installment will have its own 3-year lock-in period. Regularly review your investment’s performance and consider increasing your investment amount if your financial situation allows.

Advantages Of Investing In Top Performing ELSS Funds in 10 Years?

The main advantages of investing in Top Performing ELSS Funds in 10 Years include a proven track record, potential for high returns, tax benefits, equity market exposure, and professional management. These funds offer a combination of tax savings and wealth creation potential.

• Proven Track Record: These funds have demonstrated consistent performance over a long period, indicating their ability to navigate various market cycles successfully.

• High Return Potential: With a focus on equity markets, these funds offer the potential for higher returns compared to traditional tax-saving options.

• Tax Benefits: ELSS funds provide tax deductions up to ₹1.5 lakh under Section 80C, offering immediate tax savings.

• Equity Exposure: Investors gain exposure to equity markets, potentially benefiting from the long-term growth of the Indian economy.

• Professional Management: Experienced fund managers make informed investment decisions based on in-depth market research and analysis.

Risks Of Investing In Top Performing ELSS Funds in 10 Years?

The main risks of investing in the Top Performing ELSS Funds in 10 Years include market risk, potential for underperformance, concentration risk, liquidity constraints due to lock-in, and the possibility of change in fund management or strategy over time.

• Market Risk: As equity-oriented funds, ELSS are subject to market fluctuations, which can lead to potential losses, especially in the short term.

• Underperformance Risk: Past performance doesn’t guarantee future results. Even top-performing funds may underperform in certain market conditions.

• Concentration Risk: Some ELSS funds may have concentrated portfolios, increasing risk if those specific sectors or stocks underperform.

• Liquidity Constraints: The mandatory 3-year lock-in period limits liquidity, which could be problematic if you need funds urgently.

• Management Changes: Over a 10-year period, there’s a possibility of changes in fund management or strategy, which could impact future performance.

Importance of ELSS Funds

The main importance of ELSS Funds lies in their ability to offer tax benefits, provide equity market exposure, promote disciplined investing, offer the potential for high returns, and serve as a gateway to equity investing for many investors.

• Tax Benefits: ELSS funds offer tax deductions up to ₹1.5 lakh under Section 80C, helping investors reduce their tax liability while investing for the future.

• Equity Exposure: These funds provide an opportunity to invest in equity markets, potentially benefiting from the long-term growth of the economy.

• Disciplined Investing: The 3-year lock-in period encourages investors to stay invested, promoting a disciplined approach to long-term investing.

• 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.

• Investment Education: For many investors, ELSS serves as an introduction to equity investing, helping them understand market dynamics and investment principles.

How Long to Stay Invested in ELSS Funds?

While ELSS funds have a mandatory lock-in period of 3 years, it’s generally advisable to stay invested for a longer duration, ideally 5-7 years or more. This longer investment horizon allows investors to potentially benefit from the power of compounding and ride out short-term market volatility.

Staying invested for a longer period also aligns with the equity-oriented nature of ELSS funds. It gives the investment time to grow and potentially deliver better returns. However, the exact duration should depend on your financial goals and risk tolerance.

Tax Implications of Investing in ELSS Funds

Investments in ELSS funds offer tax deductions up to ₹1.5 lakh under Section 80C of the Income Tax Act. This provides immediate tax savings in the year of investment. 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, if any, 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.

Future of ELSS Funds

The future of ELSS funds looks promising as they continue to offer a unique combination of tax savings and equity market exposure. With increasing financial awareness and the need for tax-efficient investing, ELSS funds are likely to remain popular among investors looking to save taxes while aiming for long-term wealth creation.

As the mutual fund industry evolves, we may see more innovative ELSS products, potentially including those focusing on specific themes or sectors. The emphasis on financial inclusion and digital investing may also lead to increased accessibility and adoption of ELSS funds.

Top Performing ELSS Funds in 10 Years – FAQs  

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.