Top 7 Best ELSS Tax Saving Mutual Funds to invest

Mutual fund investments especially ELSS funds are currently among the most popular investment options available to an individual investor who is seeking to make their capital grow. However, not all tax savings mutual funds are created equal and thus it is important to know which the best tax saver funds are. Such a list is designed to help investors make an informed decision and make the most of their tax saving investments. The following in no particular order is a short list of the 7 best ELSS funds to help you grow your investments faster.

Check here: Best ELSS Mutual funds 2020 - Top 10 Tax Saving Mutual Funds in India

DSP BlackRock Tax Saver Fund

DSP BlackRock Tax Saver Fund has been making waves ever since it underwent a management change in 2015. In the past year, this scheme has provided over 26% ROI, one of the highest in the category, which makes it rank among the best ELSS funds currently available for investment in India.

Axis Long Term Equity Fund

The Axis Long Term Equity Fund is by far the most popular tax saver mutual fund currently available in the market. In recent times, this mutual fund investment has provided relatively lower ROI as compared to many of its peers, but with annual returns of over 20% annually, it is still a popular investment option with potentially high future returns.

Reliance Tax Saver Fund (ELSS)

The Reliance Tax Saver Fund (ELSS) has consistently beaten its peers as well as its benchmark almost every year since its inception. Even in a tough year for equities like we observed in 2016, this Reliance AMC fund makes it on the best ELSS funds list having garnered returns in excess of 29% annually in FY 2016-2017.

Birla Sun Life Tax Relief 96

The Birla Sun Life Tax Relief 96 fund was first introduced for investment in 1996 and since then it has managed to hold its own through multiple market booms and busts. Having followed a multi-cap investment strategy in the past few years, the fund has shown robust growth with an ROI exceeding 23% in the past year.

Birla Sun Life Tax Plan

Odd though it may seem, Birla Sun Life Mutual Fund AMC is one of the few fund houses that has managed to produce not one but 2 of the best ELSS funds out there. The returns of the Birla Sun Life Tax Plan for the previous year exceeded 23%, which makes it one of the best performing tax saver mutual funds out there.

Franklin India Tax Shield

It would be plain impossible to create a best mutual fund list even a best ELSS funds list without at least one product of Franklin India Mutual Fund AMC appearing on it. The Franklin India Tax Shield is the premium tax saver fund available in India right now an even though 2016 might have been a tough year for this open-ended fund, we expect it to perform much better than its previous year’s 23% ROI in the coming years.

Mirae Asset Tax Saver

Mirae Asset Management AMC is the veritable new kid on the block and its ELSS tax saver fund was launched pretty recently in December 2015. However in less than 2 years, this mutual fund has distinguished itself by providing an annual ROI in excess of 38% in the past year. Even though this fund deserves inclusion in the best ELSS funds list based on just its past year’s returns, its aggressive strategy of high exposure to mid and small cap mutual funds might actually be a problem in the long term.

Conclusion

The above best ELSS funds list is meant to be short and designed to serve as a guideline only. Once must always remember that mutual fund investments are subject to a degree of risk especially because they are market-linked investments and prone to uncertainty. However, more often than not, a fund that has performed well in the past tends to perform almost equally in the future too unless there is a marked change in strategy or a change in fund management. If You Enjoyed This Post Please Take 5 Seconds To Share It.