Top Performing ELSS Funds in 5 Years

The table below shows a list Of the Best ELSS funds Based on AUM, NAV and minimum SIP.

Introduction to Top Performing ELSS Funds in 5 Years

Mirae Asset ELSS Tax Saver Fund

Mirae Asset ELSS Tax Saver Fund Direct-Growth is an ELSS mutual fund scheme from Mirae Asset Mutual Fund. This fund has been in existence for 8 years and 9 months, having been launched on 20/11/2015.

Mirae Asset ELSS Tax Saver Fund as an Equity-Linked Savings Scheme, manages assets valued at ₹25617.49 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 24.72%. This fund has no exit load and an expense ratio of 0.58%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  98.56%, No Debt and Other at 1.44%.

DSP ELSS Tax Saver Fund

DSP ELSS Tax Saver Direct Plan-Growth is an ELSS mutual fund scheme from DSP Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

DSP ELSS Tax Saver Fund as an Equity-Linked Savings Scheme, manages assets valued at ₹17488.27 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 25.73%. This fund has no exit load and an expense ratio of 0.69%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  98.44%, No Debt and Other at 1.56%.

Nippon India ELSS Tax Saver Fund

Nippon India ELSS Tax Saver Fund Direct-Growth is an ELSS mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Nippon India ELSS Tax Saver Fund as an Equity-Linked Savings Scheme, manages assets valued at ₹16547.11 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 22.46%. This fund has no exit load and an expense ratio of 1.01%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  98.97%, No Debt and Other at 1.03%.

HDFC ELSS Tax saver

HDFC ELSS Tax Saver Direct Plan-Growth is an ELSS mutual fund scheme from HDFC Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

HDFC ELSS Tax saver as an Equity-Linked Savings Scheme, manages assets valued at ₹16145.24 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 23.98%. This fund has no exit load and an expense ratio of 1.09%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  91.88%, Debt – 0.31% and Other at 7.8%.

ICICI Pru ELSS Tax Saver Fund

ICICI Prudential ELSS Tax Saver Direct Plan-Growth is an ELSS mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

ICICI Pru ELSS Tax Saver Fund as an Equity-Linked Savings Scheme, manages assets valued at ₹14907.37 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 22.09%. This fund has no exit load and an expense ratio of 1.06%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  95.49%, No Debt and Other at 4.5%.

Quant ELSS Tax Saver Fund

Quant ELSS Tax Saver Fund Direct-Growth is an ELSS mutual fund scheme from Quant Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Quant ELSS Tax Saver Fund as an Equity-Linked Savings Scheme, manages assets valued at ₹11124.71 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 37.84%. This fund has no exit load and an expense ratio of 0.65%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  88.05%, No Debt and Other at 11.95%.

Canara Rob ELSS Tax Saver Fund

Canara Robeco ELSS Tax Saver Direct-Growth is an ELSS mutual fund scheme from Canara Robeco Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Canara Rob ELSS Tax Saver Fund as an Equity-Linked Savings Scheme, manages assets valued at ₹8875.70 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 25.18%. This fund has no exit load and an expense ratio of 0.51%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  96.1%, No Debt and Other at 3.9%.

Bandhan ELSS Tax Saver Fund

Bandhan ELSS Tax Saver Fund Direct Plan-Growth is an ELSS mutual fund scheme from Bandhan Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Bandhan ELSS Tax Saver Fund as an Equity-Linked Savings Scheme, manages assets valued at ₹7234.92 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 26.33%. This fund has no exit load and an expense ratio of 0.63%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  97.78%, Debt at 0.01% and Other – 2.21%.

Franklin India ELSS Tax Saver Fund

Franklin India ELSS Tax Saver Fund Direct-Growth is an ELSS mutual fund scheme from Franklin Templeton Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Franklin India ELSS Tax Saver Fund as an Equity-Linked Savings Scheme, manages assets valued at ₹7143.11 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 23.74%. This fund has no exit load and an expense ratio of 0.99%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  97.56%, No Debt and Other at 2.44%.

Kotak ELSS Tax Saver Fund

Kotak ELSS Tax Saver Fund Direct-Growth is an ELSS mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Kotak ELSS Tax Saver Fund as an Equity-Linked Savings Scheme, manages assets valued at ₹6334.74 crores. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 24.51%. This fund has no exit load and an expense ratio of 0.52%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises Equity at  97.5%, No Debt and Other at 2.5%.

What Are ELSS Funds?

ELSS (Equity-Linked Savings Schemes) are mutual funds that primarily invest in equities. They are designed to offer investors both capital appreciation and tax benefits under Section 80C of the Income Tax Act, making them a popular investment choice.

These funds come with a mandatory lock-in period of three years, during which investors cannot withdraw their money. This lock-in encourages long-term investing, allowing the fund to capitalize on equity market growth over time.

ELSS funds provide the potential for high returns due to their equity investments but also come with market risk. They are suitable for investors looking to combine tax savings with the possibility of significant capital growth.

Features Of Top Performing ELSS Funds in 5 Years

The main features of top-performing Equity-Linked Savings Schemes (ELSS) over five years include tax benefits, high growth potential, diversified equity investments and lock-in periods. These features make ELSS funds an attractive option for long-term capital growth and tax saving.

• Tax Benefits: ELSS funds offer tax deductions under Section 80C of the Income Tax Act, allowing investors to reduce their taxable income. This benefit is particularly valuable for individuals seeking to maximize tax savings while investing in equities.
• High Growth Potential: Top-performing ELSS funds invest primarily in equities, which provide high growth potential compared to fixed-income instruments. Over five years, these funds can deliver substantial returns, benefiting from the overall growth of the stock market.
• Diversified Equity Investments: ELSS funds typically diversify their investments across various sectors and companies. This diversification reduces risk and enhances potential returns, as the fund is not overly reliant on the performance of any single stock or sector.
• Lock-in Periods: ELSS funds come with a mandatory lock-in period of three years, which encourages long-term investment. This period helps investors stay committed to their investment strategy, potentially leading to better returns as equity markets grow over time.

Best Performing ELSS Funds in 5 Years

The table below shows the Best-performing ELSS funds Based on the highest to lowest expense ratio.

Top Performing ELSS Funds in 5 Years In India

The table below shows the Best ELSS funds Based on the Highest 3Y CAGR.

Top Performing ELSS Funds in 5 Years List 

The table below shows Best Performing ELSS funds In India Based on Exit Load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Factors To Consider When Investing In Top Performing ELSS Funds in 5 Years

The main factors to consider when investing in top-performing ELSS funds over five years include fund performance history, expense ratio, portfolio diversification and tax implications. Evaluating these factors helps ensure you choose a fund that aligns with your investment goals and risk tolerance.

• Fund Performance History: Assess the fund’s historical performance to gauge its ability to deliver strong returns. Consistent past performance can indicate effective fund management, but remember that it’s not a guarantee of future results, so consider other factors as well.
• Expense Ratio: Examine the expense ratio to understand the costs associated with the fund. A lower expense ratio means more of your investment returns are preserved, while higher costs can erode your gains over time. Choose a fund with a reasonable expense ratio.
• Portfolio Diversification: Check the fund’s portfolio diversification to ensure it spreads investments across various sectors and companies. Diversification reduces risk and enhances potential returns by not relying too heavily on any single stock or industry.
• Tax Implications: Consider the tax benefits and implications of investing in ELSS funds. They offer tax deductions under Section 80C, but understanding how these benefits fit into your overall tax strategy is crucial for maximizing your tax savings while investing effectively.

How To Invest In Top Performing ELSS Funds in 5 Years?

To invest in top-performing ELSS funds over five years, start by researching various funds through financial news, reviews and ratings. Compare their performance, expense ratios and portfolio diversification to identify those with consistent, strong returns.

Open an account with Alice Blue which offers ELSS funds. Complete the necessary documentation and choose your preferred fund based on your research. You can invest via lump sum or systematic investment plans (SIPs), depending on your financial goals and investment strategy.

Monitor your investment periodically to ensure it aligns with your financial objectives. Review fund performance, market conditions and any changes in fund management to make informed decisions about continuing or adjusting your investment strategy.

Advantages Of Investing In Top Performing ELSS Funds in 5 Years

The main advantages of investing in top-performing ELSS funds over five years include tax savings, the potential for high returns, diversification and long-term growth. These benefits make ELSS an appealing choice for both tax planning and wealth accumulation.

• Tax Savings: ELSS funds offer tax deductions under Section 80C, allowing investors to reduce their taxable income by investing up to a specified limit. This benefit is especially valuable for those seeking to lower their tax liability while investing in equities.
• Potential for High Returns: Top-performing ELSS funds are equity-oriented and have the potential to deliver significant returns over five years. Equity investments generally offer higher growth compared to traditional savings instruments, making them suitable for capital appreciation.
• Diversification: ELSS funds typically invest in a diversified portfolio of stocks across various sectors. This diversification helps mitigate risk by spreading investments, reducing the impact of poor performance in any single stock or sector.
• Long-Term Growth: With a mandatory lock-in period of three years, ELSS funds encourage a long-term investment approach. This extended investment horizon aligns with equity markets’ growth potential, potentially leading to substantial wealth accumulation over time.

Risks Of Investing In Top Performing ELSS Funds in 5 Years

The main risks of investing in top-performing ELSS funds over five years include market risk, volatility, lock-in period constraints and fund-specific risks. Understanding these risks helps investors make informed decisions and manage potential downsides associated with equity investments.

• Market Risk: ELSS funds invest primarily in equities, which are subject to market fluctuations. Economic downturns or market volatility can impact fund performance, leading to potential losses. Investors must be prepared for market risk and potential declines in fund value.
• Volatility: Equity markets can be highly volatile, causing significant price swings in ELSS funds. This volatility can affect short-term performance and may lead to unpredictable returns, which can be challenging for investors with lower risk tolerance.
• Lock-in Period Constraints: ELSS funds come with a mandatory lock-in period of three years. This restriction limits access to your investment during the lock-in, which may be inconvenient if you need liquidity or wish to adjust your investment strategy.
• Fund-Specific Risks: Individual ELSS funds carry specific risks based on their management, investment strategy and portfolio. Poor fund management or concentration in underperforming sectors can negatively affect returns, making it essential to evaluate the fund’s strategy and track record.

Importance of ELSS Funds

ELSS funds are important for tax planning as they offer deductions under Section 80C of the Income Tax Act, allowing investors to reduce their taxable income. This tax benefit makes them a valuable tool for maximizing tax savings while investing.

Additionally, ELSS funds provide exposure to equities, offering the potential for high long-term returns. Their mandatory lock-in period encourages disciplined investing, helping investors benefit from the growth potential of the stock market over time while accumulating wealth.

How Long to Stay Invested in ELSS Funds?

You should stay invested in ELSS funds for at least the mandatory lock-in period of three years to benefit from tax deductions. This period allows your investment to grow, leveraging the potential for higher returns from equities over time.

For optimal long-term growth, consider holding your investment beyond the three-year lock-in. Equity markets generally require time to realize their full potential and extended investment horizons can enhance returns, aligning with your financial goals and allowing for wealth accumulation.

Tax Implications of Investing in ELSS Funds

Investing in ELSS funds offers tax benefits under Section 80C of the Income Tax Act, allowing investors to claim deductions up to a specified limit. This reduces taxable income and can result in significant tax savings for eligible investors.

However, returns from ELSS funds are subject to capital gains tax. Long-term capital gains exceeding ₹1 lakh are taxed at 10% without indexation benefits. Short-term gains, if redeemed before three years, are taxed at 15%, affecting overall returns and tax planning.

Future of ELSS Funds

The future of ELSS funds is likely to involve greater adoption of digital platforms and enhanced fund management techniques. Innovations in technology and data analytics may improve investment strategies and provide investors with more tailored and efficient options.

Additionally, evolving regulatory changes and economic conditions could impact ELSS fund structures and tax benefits. Investors should stay informed about policy updates and market trends to adapt their strategies, ensuring that ELSS funds continue to meet their financial and tax planning needs.

Top Performing ELSS Funds in 5 Years FAQs  

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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.