Oct 30, 2017 3 min read

Best Tax Saving Mutual Funds to Invest in 2017-2018

Invest in these schemes to save more taxes while earning high returns.
Every individual wants to save more on their income tax, but least know the amazing way of doing the same by investing in the tax-savings mutual funds, i.e., Equity Linked Savings Scheme (ELSS). You too might be building strategies for availing various tax benefits as the year-end is approaching.

But we suggest you to choose the best way out which is investing in ELSS schemes to get the deduction of up to Rs. 1.5 lakh under section 80C of the Income Tax Act of India, 1961.

Here are some of the best ELSS schemes to invest in 2017-18

  1. Reliance Tax Saver Fund Growth Plan : Being one of the best choices for tax-saving investments, it has managed to showcase an amazing performance in the recent past. It follows a mixed investment style which targets the achievement of both value and growth over the time. It has consistently beaten its benchmark, i.e., S&P BSE 100, and category over three, five, seven, and ten years returns. As it invests in the mix of large, mid and small-cap stocks, it contains moderately high risk and moves aggressively to attain growth in the long term.    

    This scheme of Reliance Mutual Fund was launched in the year 2005, and since then it started moving toward the attainment of the high growth. But, the crisis of 2008 affected the moves of the entire market in which this scheme has also faced a downward move. After the fall of 2008, it regained its value in the subsequent year and remained a consistent performer for years. An exceptional growth has been tracked by this scheme in the last four years. Its current NAV is recorded at Rs. 64.98 as on October 25, 2017.  

    Trailing returns of the Reliance Tax Saver Fund, category, and the benchmark as on October 25, 2017.
    Reliance Tax Saver
  2. DSP BlackRock Tax Saver Fund Growth Plan : It is one of the best schemes of DSP BlackRock Mutual Funds under the ELSS category. It helps the investors to avail the tax benefits u/s 80C. Being an equity scheme, it invests in the stocks of various companies out of which more than 51% are the large-cap ones. It is a moderately risky fund which prominently targets toward the high growth in the long-term period. To be more clear, it can be a suitable choice for a conservative equity investor.  

    This scheme of DSP BR MF was launched in the year 2007, and within a very short-term period, i.e., one year, it has almost doubled the capital of the investors by making a jump in its NAV value from Rs. 10 at the time of launch to Rs. 19.65 as on January 03, 2008. Not imposed that, if mutual funds are known to be a safe investment, they will always provide you profits. Therefore, the hits of the economic crisis in 2008, also made an impact on the performance of this scheme. The expert fund manager managed to recover the value of the fund very quickly in the following years. It has been a consistent performer since then and has been showcasing attracting performance since the last four years.
    Trailing returns of the DSP BlackRock Tax Saver Fund, category, and the benchmark as on October 25, 2017.
    DSP BlackRock Tax Saver
  3. Aditya Birla Sun Life Tax Relief 96 Fund : For the investors who want to reap the benefits of aggressive equity investment while attaining the advantages of tax savings, this scheme of ABSL MF is one of the best choices. It is highly aggressive toward attaining high capital appreciation in the long term as it invests more than half of its total assets in the stocks of small and mid-cap companies.  

    This scheme was launched in the year 1996 and has managed to provide good returns to its investors in the long-term period. It has faced many ups & downs of the market and in spite that the investment in this scheme always proved to be rewarding in the long run.  

    Trailing returns of the ABSL Tax Relief 96 Fund, category, and the benchmark as on October 25, 2017.

Henceforth, all the three schemes mentioned above are among the best options for the ones who want to invest to reap both the benefits, i.e., tax-savings and capital appreciation in the long run. The schemes as mentioned above are also recommended by the experts of MySIPonline.