5 Best ELSS Mutual Funds India 2022

ELSS mutual funds, or Equity Linked Savings Scheme mutual funds, are a type of tax saving fund in India. They offer investors the opportunity to save on taxes while investing in equities, or stocks. ELSS funds are one of the best ways to save money on taxes in India and offer a number of benefits over other types of tax saving investments. In this article, we will discuss the five best ELSS mutual funds in India.

What is ELSS Fund?

ELSS funds invest at least 80% of their assets in equities, making them a popular choice for investors looking for long-term growth potential. ELSS funds also have a lock-in period of 3 years, which means that investors must hold onto the fund for a minimum of three years before they can withdraw their investments.

Importance of Investing in ELSS Funds?

ELSS funds offer investors the opportunity to save on taxes through Section 80C of the Income Tax Act. Investments up to 1.5 lakh rupees per financial year in ELSS funds can be claimed as a deduction from taxable income, offering significant tax savings potential for investors.

Additionally, ELSS funds have the potential for higher returns compared to other tax saving instruments such as PPF or ELSS tax saver Fixed deposits. ELSS funds also have a shorter lock-in period of only three years, compared to the 15 year lock-in period for PPF.

1. Canara Robeco Equity Tax Saver Direct- Growth

Canara Robeco Equity Tax Saver Direct is a medium-sized fund of its category that has been in existence for 9 yrs, launched in 01/01/2013. The AUM currently stands at ₹4182 crores and it’s expected to grow by 10% annually until 2020 when they expect an additional growth rate of 8%. This mutual fund charges 0%, which makes them competitive amongst other common ELSS funds available today – however, their ability to deliver returns consistently matches up well against these competitors as well!

2. Mirae Asset Tax Saver Fund Direct-Growth

Mirae Asset Tax Saver Fund Direct-Growth is a mutual fund that invests in stocks. It is from Mirae Asset Mutual Fund and has been around for 6 years and 11 months. As of September 30, 2022, it had assets worth ₹12,925 Crores.

This fund charges less than most other ELSS funds. The fund has delivered returns of -3.46% in the last year. In the last 3 years, the fund has doubled the money invested in it every 3 years on average. The fund’s ability to deliver returns consistently is in line with most other funds in its category.

3. IDFC Tax Advantage (ELSS) Direct Plan-Growth

IDFC Tax Advantage (ELSS) Direct Plan-Growth is a tax-saving fund. The scheme offers tax benefits under section 80C of the Income Tax Act. 

  • The scheme provides an opportunity to invest in a diversified portfolio of large cap stocks
  • The scheme’s investment objective is to provide long term capital appreciation by investing predominantly in equity and equity-related securities. 
  • The scheme is suitable for investors seeking long-term capital appreciation and tax benefits. 
  • The scheme is benchmarked against the Nifty 50 Index. 
  • The fund has a tracking error of 2%. 
  • The scheme has an annual return of 17.7%. The scheme has been in existence for 9 years and 9 months. As on 30th September 2022, the scheme had assets under management (AUM) of ₹3,808 Crores. The expense ratio of the scheme is 0.74%.

4. Kotak Tax Saver Fund Direct-Growth

The Kotak Tax Saver Fund Direct-Growth is a great option for investors looking for a tax-saving mutual fund. The fund has been in existence for over 9 years and has delivered strong returns, averaging 15.54% per year since launch.

The fund’s top 5 holdings are in ICICI Bank Ltd., State Bank of India, Reliance Industries Ltd., Infosys Ltd., Axis Bank Ltd., all large, established companies. The expense ratio of 0.67% is quite low compared to other similar funds. This makes the Kotak Tax Saver Fund Direct-Growth a very attractive option for investors looking to save on taxes.

5. UTI Long Term Equity Fund Direct-Growth

ELSS funds are a great way to save on taxes. They have a lock-in period of 3 years, after which you can withdraw your money. returns from these funds are also exempt from tax. UTI Long Term Equity Fund Direct-Growth is one such fund that has been in existence for 9 years now.

The fund has delivered 14.17% average annual returns since its inception and has doubled the money invested in it every 3 years. The fund’s top 5 holdings are ICICI Bank Ltd., HDFC Bank Ltd., Infosys Ltd., Axis Bank Ltd., and Bharti Airtel Ltd. The fund has an expense ratio of 1.02%, which is close to what most other ELSS funds charge. So, if you are looking for a good tax saving option, UTI Long Term Equity Fund Direct-Growth is worth considering.

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StockIPO

I am the founder of StockIPO website, has a 6+ years experience in stock market industry. Expertise in financial investments, personal finance and IPO. My main aim of this journey too build awareness on personal finance among the young investors.

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