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I'm planning to invest money to save taxes on my income. I heard about ELSS MF that will provide tax benefit.

Do any one know which ELSS MF is best to invest which secure and returns more?

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answered by (19.8k points)

Equity Linked Savings Scheme (ELSS) Mutual Funds are one of the popular 80C tax saving options for savvy investors. 

ELSS is a diversified equity mutual fund which has a majority of the corpus invested in equities.

There is a lock in period of 3 years from the date of investment. You can remain invested even after 3 years and can withdraw anytime after that lockin.

Returns are based on returns from Equity Markets. Returns from ELSS Schemes are tax free. Based on previous returns, some of the funds has grown 3 times in 5 years.

There is no limit of investment in ELSS Funds, but you can claim Tax deduction upto Rs 1.50 Lakh under Section 80C of Income Tax Act. 


It is always better to invest

via SIP mode rather than lumpsum (for cost averaging) 

in GROWTH Option (for wealth accumulation)

in DIRECT Plan ( to save costs & higher returns) 


Top 5 Best ELSS or Tax Saving Mutual Funds to invest in 2016


1) Axis Long Term Equity Fund-This is the fund which is catching intention of many investors. I noticed that few invested in this fund because it has provided good returns since 5 years.

2) Birla Sunlife Tax Plan-The fund is in the market since 1999. Its results are very consistent.

3) Franklin India Tax Shield-This is one my favorite fund, which is in top since its launch in 1999 

4) ICICI Prudential Long Term Equity Fund-This is the one more fund, which I suggested last year, along with Franklin India Taxshield Fund and I again recommend this fund.

5) DSP BlackRock Tax Saver Fund-This is the fund which is in the market since 2007 and consistently performed well. Hence, I included this fund in my list.

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