ELSS Funds are among the best tax saving investment solutions. When it comes to saving tax, investors seek investment solutions that not just offer them tax benefits, but also provide higher returns. With mutual funds gaining increasing attention, investors can now choose from a selection of tax saving instruments. Some of the best elss funds to invest in are:
DSP Blackrock Tax Saver Fund
This fund has invested its corpus primarily in stocks that belong to Banking, Oil & Gas and Auto sectors. Almost 70% of the fund’s corpus has been invested in Large cap stocks and around 20% in Mid-cap Company Stocks. The returns generated by this fund during last 5 year and 10 year period are 20.6% and 15.6% respectively.
Birla Sun life Tax Relief ’96
The fund’s portfolio has stocks from these top 3 sectors – Banking, Auto & Pharmaceuticals. The portfolio has higher allocation (around 57%) to Mid & Small cap stocks. This fund generally follows multi-cap strategy. The returns generated by this fund during last 5 & 10 years are 20.1% and 12.6% respectively.
Axis Long Term Equity Fund
The fund’s performance has not been up to the mark in this Financial year (2016-17). But, may be it is too early to drop this fund from the top ELSS Funds list. Let’s give it some more time…! The fund is still one of the best consistent performers during the last 5 year period. Banking, Auto and Engineering are the top 3 sectors in this Fund’s portfolio.
Birla Sunlife Tax Plan
The top sectors chosen by this ELSS fund are Auto, Banking and Pharmaceuticals. You can consider this fund as a typical Mid-cap oriented fund, as around 57% of its fund corpus has been allocated to mid & small cap stocks. The returns generated by this fund during last 5 and 10 years are 19% and 12% respectively.
Franklin India Taxshield Fund
Banking, Auto and Technology sectors have been given importance by this fund in its portfolio allocation. Based on its portfolio allocation, we can consider this fund as a typical Large cap oriented fund. Around 80% of the fund corpus is in Large Cap Stocks. This fund has been one of the most consistent ELSS funds for the last many years.