ELSS Mutual Funds - Best Way to Save Tax at the last minute
The financial year is soon going to end in March 2017, and you must be in the urgent need to save on the taxes before you are too late. Under such a situation, the best solution as recommended by the fund analysts is to invest in the ELSS or Equity Linked Mutual Funds. These funds offer tax exemption up to 1.5 lakh under section 80C of Income Tax Act, 1961, along with several additional benefits such as tax-free dividends, non-taxable capital gain, etc. In this blog, we have provided you with all that you wish to know about the best ELSS schemes for your portfolio.
Furthermore, here are the three top ELSS mutual fund schemes which can earn you huge profits if you invest in them before the financial year ends. Go through the list below to know about them:
1. DSP BR Tax Saver Fund
This scheme is an open-ended equity linked savings scheme whose objective is to generate medium to long-term capital appreciation from a diversified portfolio that constitutes equity and equity-related securities of various sectors and corporate houses to enable the investors to get a tax deduction from total income as permitted under the Income Tax Act,1961. The annualised returns of this scheme have been 19.9% over the span of five years.
It was launched in 2006 and has NIFTY 500 as its benchmark. It has an asset size of Rs. 1,420.48 crore. Moreover, it holds rank one in the CRISIL rating under the ELSS category. Furthermore, this scheme has top holdings in the equities of companies which include SBI, ICICI Bank, HDFC Bank, Tata Motors, Yes Bank, and several others.
2. Reliance Tax Saver Fund
Launched in 2005, this open-ended scheme has been ranked third in the ELSS category as per the CRISIL rating for the quarter which ended on December 31, 2016. The main objective of this scheme is to generate long-term capital appreciation from a portfolio that mainly invests in the equity and equity-related instruments. Its asset size as on December 31, 2016, has been calculated as Rs. 5,579.17 crore. Moreover, it holds a benchmark as S&P BSE 100 against which its performance is evaluated. The scheme has offered annualised returns of 20.3% over the term of five years.
The asset allocation of this scheme are in the sectors such as Banking/Finance, Technology, Automotive, etc., and the holdings are in the equities of corporates including TVS Motor, Tata Steel, SBI, Infosys, HDFC Bank, and many others.
3. Franklin India Tax Shield Fund
Launched in 1999, this mutual fund scheme holds rank 3 in ELSS category of the CRISIL rating. The main aim of this scheme is to provide medium to long-term growth of capital along with income tax rebate. It holds an asset size of Rs. Rs. 2,196.18 crore. If you are aiming to make an investment in this scheme, then you can start with an SIP or a lump cum payment. Moreover, this scheme has offered annualised returns of 17.7% within the span of five years.
In addition to this, the scheme’s major holdings are in the equities of the companies such as HDFC Bank, Infosys, Yes Bank, M&M, IndusInd Bank, Axis Bank and others as well.
Accordingly, at this point of time when the finacial year is ending soon, the ELSS investment funds can help you in reducing your tax liability for the year 2016-2017. The schemes mentioned above are among the top-rated ones and would definitely enhance your earnings in the long run, providing tax exemption alongside.
With MySIPonline, you would be able to know about the best mutual funds to invest in so as to save on the taxes. We have a dedicated team of fund analysts who can guide you on building an effective portfolio that will surely earn you high returns in the future. So, avail our investment services today and secure your coming years.
- LTCG Tax Is Not As Negative As it Seems; Here’s Why?42874 min read Jan 01, 1970
- Sensex Plunges Over 1000 Points; Should You Buy or Hold Your Investments for Correction?43783 min read Jan 01, 1970
- Sensex Dives Nearly 840 Points: Things to Consider and Experts’ Take44763 min read Jan 01, 1970