It is that time of the year when salaried class tax paying Indians look for suitable options to invest before their final income tax payout is calculated. Of the options that are available, Public Provident Fund (PPF) remains popular with all the investors and Equity Linked Savings Scheme (ELSS) is fast catching up as the alternative.
ELSS has some good funds which come with a 3-year lock in period. The tax benefits from investing in ELSS come under Section 80C of the Income Tax Act. While it is advisable to start investing early in these ELSS funds, as they say better late than never.
The funds listed below give you idea about returns over a period of 3 year, 5 year and 10 years. Based on your apetite for risk and planning choose the fund and invest accordingly.
| ELSS Mutual Fund Options for 3 years: For investors looking for a short-term investment of just 3 years, Mirae Asset Tax Saver Fund – Regular Plan offers the best returns of 21 per cent. Axis Long Term Equity Fund offers the lowest returns if you are investing in ELSS Mutual Fund for a period of 3 years. |
| S No | Fund | Launch | 3-years return | Expense Ratio | Net Assets (In Crore) | Rating |
| 1 | Mirae Asset Tax Saver Fund – Regular Plan | Dec-15 | 21.31 | 2.1 | 1,252 | ***** |
| 2 | HDFC Long Term Advantage Fund | Jan-01 | 17.65 | 2.2 | 1,468 | **** |
| 3 | Principal Tax Savings Fund | Mar-96 | 16.92 | 2.65 | 383 | **** |
| 4 | Quant Tax Plan | Apr-00 | 16.7 | 2.5 | 8 | ***** |
| 5 | Motilal Oswal Long Term Equity Fund – Regular Plan (Erstwhile Motilal Oswal MOSt Focused Long Term Fund) | Jan-15 | 16.22 | 2.12 | 1,159 | ***** |
| 6 | JM Tax Gain Fund | Mar-08 | 15.51 | 2.75 | 30 | **** |
| 7 | Aditya Birla Sun Life Tax Relief 96 | Mar-96 | 15.42 | 1.91 | 7,220 | ***** |
| 8 | L&T Tax Advantage Fund | Feb-06 | 15.23 | 2.14 | 3,208 | **** |
| 9 | DSP Tax Saver Fund | Jan-07 | 15.03 | 2.26 | 4,675 | **** |
| 10 | IDFC Tax Advantage (ELSS) Fund – Regular Plan | Dec-08 | 14.95 | 2.05 | 1,732 | **** |
| 11 | Aditya Birla Sun Life Tax Plan | Feb-99 | 14.77 | 2.39 | 660 | **** |
| 12 | Invesco India Tax Plan | Dec-06 | 14.71 | 2.51 | 686 | **** |
| 13 | Tata India Tax Savings Fund | Mar-96 | 14.67 | 2.14 | 1,555 | **** |
| 14 | Axis Long Term Equity Fund | Dec-09 | 13.61 | 2.08 | 17,852 | ***** |
ELSS Mutual Fund Options for 5 years: Quant Tax Plan fund tops the list if you are investing for 5-year term. The fund offers about 21 per cent returns to investors if they invest in the ELSS fund for a period of 5 years. L and T Tax Advantage Fund offers the lowest returns if you are investing in the ELSS Mutual Fund for 5 years.
| S No | Fund | Launch | 5-Years Return % | Expense Ratio | Net Assets (In Crore) | Rating |
| 1 | Quant Tax Plan | Apr-00 | 20.76 | 2.5 | 8 | ***** |
| 2 | Axis Long Term Equity Fund | Dec-09 | 19.09 | 2.08 | 17,852 | ***** |
| 3 | Aditya Birla Sun Life Tax Relief 96 | Mar-96 | 18.96 | 1.91 | 7,220 | ***** |
| 4 | Aditya Birla Sun Life Tax Plan | Feb-99 | 18.17 | 2.39 | 660 | **** |
| 5 | Tata India Tax Savings Fund | Mar-96 | 17.97 | 2.14 | 1,555 | **** |
| 6 | Invesco India Tax Plan | Dec-06 | 17.84 | 2.51 | 686 | **** |
| 7 | JM Tax Gain Fund | Mar-08 | 17.37 | 2.75 | 30 | **** |
| 8 | DSP Tax Saver Fund | Jan-07 | 17.26 | 2.26 | 4,675 | **** |
| 9 | Principal Tax Savings Fund | Mar-96 | 16.9 | 2.65 | 383 | **** |
| 10 | IDFC Tax Advantage (ELSS) Fund – Regular Plan | Dec-08 | 16.09 | 2.05 | 1,732 | **** |
| 11 | HDFC Long Term Advantage Fund | Jan-01 | 16.02 | 2.2 | 1,468 | **** |
| 12 | L&T Tax Advantage Fund | Feb-06 | 15.86 | 2.14 | 3,208 | **** |
| 13 | Mirae Asset Tax Saver Fund – Regular Plan | Dec-15 | – | 2.1 | 1,252 | ***** |
| 14 | Motilal Oswal Long Term Equity Fund – Regular Plan (Erstwhile Motilal Oswal MOSt Focused Long Term Fund) | Jan-15 | – | 2.12 | 1,159 | ***** |
ELSS Mutual Fund Options for 10 years: For investors looking to stay invested for a period of 10-year Invesco India Tax Plan fund offers 20 per cent returns. Aditya Birla Sun Life Tax Relief 96 offers almost similar returns. Quant Tax Plan which offers the highest returns for a period of 5 years, offers lowest returns of 13 per cent to investors investing in the ELSS Mutual Fund for a 10-year period.
| S No | Fund | Launch | 10-Year Return | Expense Ratio | Net Assets (In Crore) | Rating |
| 1 | Invesco India Tax Plan | Dec-06 | 20.12 | 2.51 | 686 | **** |
| 2 | Aditya Birla Sun Life Tax Relief 96 | Mar-96 | 20.02 | 1.91 | 7,220 | ***** |
| 3 | HDFC Long Term Advantage Fund | Jan-01 | 19.55 | 2.2 | 1,468 | **** |
| 4 | DSP Tax Saver Fund | Jan-07 | 19.51 | 2.26 | 4,675 | **** |
| 5 | Tata India Tax Savings Fund | Mar-96 | 19.22 | 2.14 | 1,555 | **** |
| 6 | Aditya Birla Sun Life Tax Plan | Feb-99 | 18.9 | 2.39 | 660 | **** |
| 7 | L&T Tax Advantage Fund | Feb-06 | 18.9 | 2.14 | 3,208 | **** |
| 8 | IDFC Tax Advantage (ELSS) Fund – Regular Plan | Dec-08 | 18.25 | 2.05 | 1,732 | **** |
| 9 | Principal Tax Savings Fund | Mar-96 | 17.53 | 2.65 | 383 | **** |
| 10 | JM Tax Gain Fund | Mar-08 | 15.18 | 2.75 | 30 | **** |
| 11 | Quant Tax Plan | Apr-00 | 12.87 | 2.5 | 8 | ***** |
| 12 | Axis Long Term Equity Fund | Dec-09 | – | 2.08 | 17,852 | ***** |
| 13 | Mirae Asset Tax Saver Fund – Regular Plan | Dec-15 | – | 2.1 | 1,252 | ***** |
| 14 | Motilal Oswal Long Term Equity Fund – Regular Plan (Erstwhile Motilal Oswal MOSt Focused Long Term Fund) | Jan-15 | – | 2.12 | 1,159 | ***** |
So if you are looking for ELSS funds to invest in to save your income tax liability, look no further. Check the list of best Mutual Funds above and invest. For fiscal year 2019-20, start investing early and save yourself from the last minute running around.
(Data Source: Value Research Online)