Jun 06, 2017 3 min read

Tax Savings & Capital Growth! Five ELSS Funds to Consider

Find the best trending ELSS mutual funds in India to invest in 2017 for tax savings.
We all wish to save taxes, and for that, we desire to have an investment that can provide us with greater relief. Have you ever wondered that there is a scheme which can offer you capital appreciation and tax savings simultaneously? Yes, the mutual funds provide such an amazing benefit to the investors.

The equity-linked savings scheme, also know as ELSS funds are the open-ended and diversified schemes falling in the equity mutual fund category which provides the dual benefits of reducing taxes and earning riches.

If you are among those investors who are desirous of gaining substantial growth in your income while saving taxes, then ELSS is the perfect solution for you. The unique feature of this scheme is that it offers the tax benefits under section 80C of the Income Tax Act, according to which the investors can avail deduction up to an amount of Rs.1.5 lakh. The best ELSS funds recommended by our experts are the following:

1. Reliance Tax Saver Fund (G)

2. Axis Long Term Equity Fund (G)

3. Birla Sun Life Tax Relief 96 Fund (G)

4. DSP Blackrock Tax Saver Fund (G)

5. L&T Tax Advantage Fund (G)

Let’s elaborate the benefits offered by such schemes to the investors.

Minimum Lock-In Period of Three Years - Among the various tax-saving instruments providing the Section 80C deduction, the ELSS funds have the least lock-in period of three years. This means that the investors need not put their money in the schemes and forget it for a longer duration, rather can redeem their money just after three years.

Capital Appreciation From the Equity Market - The investments of the funds in the ELSS are made in the equity stocks and securities and fetch exceptional returns as per the market movements. With this, the investors gain the advantage of earning returns from the market as per its performance during different phases.

Tax-Free Returns And Capital Gain - The best part in ELSS schemes is that the returns which are fetched by such plans are completely tax-free. One enjoys the full benefit of such earnings without paying any sum to the taxman. Moreover, the capital gain earned by the investors by selling such schemes is again away from the tax bracket. So, ELSS provides three different tax-saving benefits to the investors.

Tax Savings Up to Rs.46,350 - By reducing the total taxable income by an amount of up to Rs.1.5 lakh, the investors can reduce their tax liability by Rs.46,350. Hence, it is simple to reduce the tax burden in a financial year.

Why Invest in Our Recommended ELSS Funds?

We have well analysed the major ELSS funds of various AMCs by considering the risk and return factors. The annual returns, trail returns, SIP returns, as well as the performance of schemes in different market scenarios, have been well-evaluated by our experts after which we have come with the above recommendations. To view the complete report for the same, you can visit the “Performance & Risk Analysis” page of ELSS funds. Our experts keep on analysing the funds to make the perfect suggestion to the investors to help them achieve their goals. So you can be sure about your goals regarding tax saving and wealth creation with these funds.

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