Best ELSS Funds for Tax Saving – Check & Compare Tax Saving Mutual Fund Online. Know the Schemes, Returns, NAV, AUM, SIP Investment Options.
Tax saving have become a real problem today. One way through which you can save your tax is ELSS. ELSS is equity linked savings scheme which is a mutual fund product via which investors invest their money in mutual fund market and save tax.
When you invest in ELSS Funds, you are doing two things simultaneously, First is the capital appreciation and the other is tax saving under Section 80C.
Under section 80C, a deduction of Rs 1,50,000 can be claimed from your total income. In simple terms, you can reduce up to Rs 1,50,000 from your total taxable income through section 80C. This deduction is allowed to an Individual or an HUF. i.e a maximum of ₹ 1,50,000/- can be claimed in a financial year.
Also, no tax is levied on the long-term capital gains from these funds. Moreover, compared to other tax saving options, ELSS has the shortest lock-in period of three years.
ELSS Fund Lock in Period
ELSS comes with a lock in period of 3 years. Within this 3 years period, one can withdraw money. After the initial period of 3 years, ELSS investment becomes open-ended and investors can withdraw it in lumpsum or in part transactions. According to the experts, these types of scheme should be withdrawn immediately after 3 years. Investor should keep some of the points in mind before jumping on to any conclusion or taking their money out of Mutual Funds. One of these main pointer is the performance of the scheme. One should carefully review the performance and then decide whether to switch or redeem the money.
Many fund houses are introducing 10-year closed ended fund as NFOs such as UTI Long Term Advantage Fund & BOI AXA Midcap Tax Fund- Series 1.
Investors should consider keeping their money for a longer period in ELSS. According to experts, it reduces the risk of negative capital appreciation.
Below are some of the best ELSS Funds based on the NAV, AUM & Returns in past 5 years.
|SCHEME NAME||FUND HOUSE||AUM (In Rs. Cr)||NAV||RETURNS (In %)|
|1 Year||3 Years||5 Years|
|Aditya Birla SL Tax Relief 96 – G||Aditya Birla||4266.07||30.92||38.77||16.39||22.48|
|DSP BlackRock Tax Saver – G||DSP BlackRock||3461.73||47.27||30.36||15.08||21|
|Axis Long Term Equity – G||Axis||15222.85||40.49||31.34||12.61||22.87|
|ICICI Pru Long Term Equity (Tax Saving) – G||ICICI||4753.1||349.27||22.46||9.2||18.24|
|Franklin India Taxshield – G||Franklin Templeton||3367.16||554.36||25.53||11.5||19.02|
Investing in ELSS via SIP
SIP stands for Systematic Investment Plan which offers the convenience of investing money in small amounts rather than lumpsums. SIP Investment can be done with a minimal amount of ₹ 500/-. All open-ended ELSS schemes allow investors to make investments through SIPs. Some fund houses allow you to choose any day of the month for the SIP . Investors just need to fill an application form along with SIP and ECS mandates, and submit it to the fund house. With the help of rupee cost averaging & power of compounding you can increase the value of your investment.
DISCLAIMER – Mutual Fund investments are subject to market risks. Please read all the scheme related documents carefully before investing.