An Equity Linked Savings Scheme (ELSS) is an open-ended Equity Mutual Fund that doesn’t just help you save tax, but also gives you an opportunity to grow your money. It qualifies for tax exemptions under section (u/s) 80C of the Indian Income Tax Act.
Along with the tax deductions, an ELSS offers you the following benefits:
- An opportunity to grow your money by investing in the equity market.
- Long-term capital gains from these funds are tax free in your hands.
- The lock-in period is only 3 years.
- You can also opt for a Dividend Payout option, thereby realizing some potential gain during the lock-in period.
- You can invest through a Systematic Investment Plan and bring discipline to your tax planning
Top ELSS funds based on 1 year returns :
(Source: Valueresearchonline)
| Fund | Launch | Expense Ratio (%) | 1-Year Return (%) | Net Assets (Cr) |
| Aditya Birla Sun Life Tax Relief 96 | 29-Mar-96 | 2.27 | 13.89 | 6187 |
| Aditya Birla Sun Life Tax Relief 96 – Direct Plan | 1-Jan-13 | 1.12 | 15.21 | 6187 |
| Axis Long Term Equity Fund | 29-Dec-09 | 1.77 | 16.87 | 17299.43 |
| Axis Long Term Equity Fund – Direct Plan | 1-Jan-13 | 1.24 | 18.1 | 17299.43 |
| Baroda Pioneer ELSS 96 Fund | 31-Mar-96 | 2.8 | 4.66 | 135.93 |
| Baroda Pioneer ELSS 96 Fund – Direct Plan | 1-Jan-13 | 2.09 | 5.63 | 135.93 |
| BNP Paribas Long Term Equity Fund | 5-Jan-06 | 2.63 | 3.84 | 517.66 |
| BNP Paribas Long Term Equity Fund – Direct Plan | 1-Jan-13 | 1.47 | 5.02 | 517.66 |
| BOI AXA Tax Advantage Fund – Direct Plan | 1-Jan-13 | 1.65 | 20.36 | 182.73 |
| BOI AXA Tax Advantage Fund – Regular Plan | 25-Feb-09 | 2.67 | 18.81 | 182.73 |
| Canara Robeco Equity Tax Saver Fund – Direct Plan | 2-Jan-13 | 1.3 | 14.32 | 891.74 |
| Canara Robeco Equity Tax Saver Fund – Regular Plan | 31-Mar-93 | 2.13 | 13.4 | 891.74 |
| DHFL Pramerica Long Term Equity Fund – Direct Plan | 11-Dec-15 | 1.1 | 10.19 | 269.59 |
| DHFL Pramerica Long Term Equity Fund – Regular Plan | 11-Dec-15 | 3.05 | 8.03 | 269.59 |
| DSP BlackRock Tax Saver Fund | 18-Jan-07 | 2.07 | 6.47 | 4217.59 |
| DSP BlackRock Tax Saver Fund – Direct Plan | 1-Jan-13 | 1.3 | 7.61 | 4217.59 |
| Edelweiss Long Term Equity Fund (Tax Savings) – Direct Plan | 21-Jan-13 | 1.28 | 9.27 | 72.91 |
| Edelweiss Long Term Equity Fund (Tax Savings) – Regular Plan | 30-Dec-08 | 2.58 | 8.06 | 72.91 |
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