 "Top performing ELSS funds with 25-33 percent returns in 3 years")
Direct plans of as many as 13 ELSS Mutual Funds have given over 23% annualised returns in the last three years. The regular plans of these schemes have also given over 23% annualised returns in this duration.
Equity-Linked Savings Scheme (ELSS) is an equity mutual fund investment that invests at least 80 per cent of its assets in equity and equity-related instruments. ELSS can be open-ended or close ended. Investments in an ELSS qualify for tax deductions under Section 80C of the Income Tax Act within the overall limit of Rs 1.5 lakh. The amount you invest in ELSS is deducted from your taxable income, which helps you lower the amount of income tax you are liable to pay. Investments in ELSS are subject to a three-year lock-in period.
ELSS fund has the shortest lock-in period among all tax-saving investment options. The units are free for redemption after 3 years.
Here are the best perfoming ELSS mutual funds as per Association of Mutual Funds in India and Value Research
1. Quant Tax Plan
The direct plan of Quant Tax Plan has given 35.48% returns while the regular one has given 33.07% returns in 3 years. The scheme tracks NIFTY 500 Total Return Index, which has given 22.81% returns in the same period.
Difference between direct and regular plan
In a Direct Plan, an investor has to invest directly with the AMC, with no distributor to facilitate the transaction. In a Regular Plan, the investor invests through an intermediary such as distributor, broker or banker who is paid a distribution fee by the AMC, which is charged to the plan.
In a Direct Plan, an investor has to invest directly with the AMC, with no distributor to facilitate the transaction. In a Regular Plan, the investor invests through an intermediary such as distributor, broker or banker who is paid a distribution fee by the AMC, which is charged to the plan.
Therefore, the direct plan has a lower expense ratio as there is no distribution fee involved, while the regular plan has a slightly higher expense ratio to account for the commission paid to a distributor to facilitate the transaction.
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2.Bandhan Tax Advantage (ELSS) Fund
The direct plan of Bandhan Tax Advantage (ELSS) Fund has given 31.05% returns while the regular plan has given 29.56% returns in 3 years. The scheme tracks S&P BSE 500 Total Return Index, which has given 23.04% returns in three years.
3.Franklin India Taxshield Fund
The direct plan has given a return of 26.64 percent return, while the regular plan has given 25.56 percent returns in 3 years. The scheme tracks NIFTY 500 Total Return Index, which has given 22.81% returns in three years.
4.Mahindra Manulife ELSS Fund
The direct plan of Mahindra Manulife ELSS Fund has given 26.59% returns while the regular plan has given 24.48% returns in 3 years. The scheme tracks NIFTY 500 Total Return Index, which has given 22.81% returns in three years.
5. Nippon India Tax Saver (ELSS) Fund
5. Nippon India Tax Saver (ELSS) Fund
The direct plan has given 26.10% returns while the regular plan has given 25.21% returns in 3 years. The scheme tracks NIFTY 500 Total Return Index, which has given 22.81% returns in three years.
6. SBI Long term Equity Fund
The direct plan of SBI Long Term Equity Fund has given 25.90% returns while the regular plan has given 25.10% returns in 3 years. The scheme tracks S&P BSE 500 Total Return Index, which has given 23.04% returns in three years.6. SBI Long term Equity Fund
7. Motilal Oswal Long Term Equity Fund
The direct plan of Motilal Oswal Long Term Equity Fund has given 25.47% returns while the regular plan has given 23.90% returns in 3 years. The scheme tracks NIFTY 500 Total Return Index, which has given 22.81% returns in three years.
8 PGIM India ELSS Tax Saver Fund
The direct plan has given 25.27% returns while the regular plan has given 23.63% returns in 3 years. The scheme tracks NIFTY 500 Total Return Index, which has given 22.81% returns in three years.
9 JM Tax Gain Fund
The direct plan of JM Tax Gain Fund Fund has given 25.76% returns while the regular plan has given 24.69% returns in 3 years. The scheme tracks S&P BSE 500 Total Return Index, which has given 23.04% returns in three years.
10. Kotak Tax Saver Fund
The direct plan of JM Tax Gain Fund Fund has given 25.76% returns while the regular plan has given 24.69% returns in 3 years. The scheme tracks S&P BSE 500 Total Return Index, which has given 23.04% returns in three years.
10. Kotak Tax Saver Fund
The direct plan of Kotak Tax Saver Fund has given 25.59% returns while the regular plan has given 23.93% returns in 3 years. The scheme tracks NIFTY 500 Total Return Index, which has given 22.81% returns in three years