If you are looking for Best ELSS Funds or Tax-Saving Mutual Fund, you must know that ELSS or Equity linked saving scheme not just allows you to save tax but higher returns to beat inflation while earning money. There is no need to make a lumpsum investment on ELSS, as this investment can be made through SIP (Systematic Investment Plan). SIP is a mode of investment enables investor to invest in small amounts, without crashing the monthly budget. Investing in Fixed Deposit offers fixed returns, which would makes beating inflation an impossible target to meet, even if it provides tax saving benefits.
With minimum lock-in period of 3 years and compounded returns, Equity Linked Saving Scheme falls under Section 80C, enabling investor to use the R1.5 lakh and avail tax benefits, & making ELSS Fund an ideal tax saving instrument and one of the Best Tax-Saving Mutual Funds to invest in.
Some of the best ELSS funds 2017 are as follows:
Axis Long Term Equity Fund
This fund comes with a lock-in period of 3 years, which is designed to generate long term returns. This mutual fund has been consistently performing well in past 5 years. Launched in Dec 2009, this fund has generated 21.66% returns in last 5 years. The Axis Long Term Equity Fund targets companies that are capable of growing profits in a sustainable manner and that can generate wealth over a period of three to four years.
Franklin Tax-shield Fund (G)
Franklin India Taxshield is listed among the greatest wealth creators in ELSS mutual funds. This fund from the Franklin Templeton stable is ideal for investors, who are looking for long term capital appreciation with tax benefits. This fund has offered more than 18% of returns consistently in past five years, where it also offered returns of 20.91% in last 3 years.
DSP BlackRock- Tax Saver Reg Fund (G)
The scheme seeks to generate medium to long-term capital appreciation from a diversified portfolio that is substantially constituted of equity and equity related securities. About 31.21% of the fund’s money is allocated to stocks of mid-sized companies, 56.4% to stocks of large sized companies and close to 10.38% to those of small companies. Returns gained in 3 and 5 years are 24% and 20.87% respectively.
Reliance Tax Saver ELSS 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 is 20.6%.
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.