Top 3 ELSS Tax Saving Mutual Funds to Invest in 2017
Equity-linked saving schemes(ELSS) have proved beneficial for those in the high tax bracket who wish to save on the income tax and earn higher returns. Above all, they are transparent, offer tax-free gains and high liquidity, have very low charges and have given good returns. If you are an investor who is looking forward to investing in the ELSS Tax Saving Mutual Funds, then you are definitely at the right place.
In this blog, we have listed out the top three ELSS Tax Saving Mutual Funds which can prove beneficial for investors in the long run. Read further to get a comprehensive overview of the same:
1. Reliance Tax Saver Fund (G): It is an open-ended equity linked savings scheme with growth investment plan which came into being on January 01, 2013. By investing in this scheme, investors can generate long-term capital appreciation from a portfolio that is invested substantially in equity and equity-related instruments.
Our finance advisors highly recommend the investors to opt for this fund. Moreover, this scheme has acquired the top position on our list due to the reasons mentioned below:
- It holds an asset size of Rs.286.90 crore for the quarter ended in September 2016.
- Investors can start with an initial investment of Rs.500 in this scheme.
- Its portfolio holdings include corporates like TVS Motors, Tata Steel, ICICI Bank, Honeywell Autom, Ramco Cements, Larsen and others.
- Reliance Tax Saver Fund has been consistently giving higher returns. Over time, it has offered 20% returns in the last one year, and 21% annualised returns in the past five years compared to S&P BSE 100 benchmark annualised returns of 12.2%.
2. DSP BlackRock Tax Saver Fund (G): Launched on November 27, 2006, it is an open-ended scheme which has been ranked first in the ELSS category by CRISIL for the quarter ended in September 2016. The primary objective of this Tax Saver Fund is to generate medium to long-term capital appreciation from a diversified portfolio that mainly comprises of equity and equity-related securities of corporates. It also aims to enable investors to avail a deduction from total income, as permitted under the income tax act.
As suggested by our financial experts, investors are recommended to stay invested if they already have put their money in it. Also, below are a few reasons because of which DSP BlackRock Tax Saver Fund stands second on our list:
- It holds an asset size of Rs 1,342.95 crore for the quarter ended in September 2016.
- Investors can start with a minimum investment of Rs.500.
- Its portfolio holdings are from diversified categories and include some of the well-known corporates like Tech Mahindra, SBI, Lupin, Infosys, Tata Motors, Hindalco, Power Grid Corp, HPCL, etc., among several others.
- It is a consistent performing tax saver fund and has generated 24% returns in the past one year, and 20% annualised returns in the last five years compared to NIFTY 500 benchmark annualised returns of 13%.
3. Axis Long Term Equity Fund (G): This scheme was launched on December 21, 2009, and is ranked third by CRISIL for quarter ended in September 2016. It focuses on generating income and long-term capital appreciation from a diversified portfolio of equity and equity-related securities.
If you have invested in this tax saver fund, then our financial experts suggest you to hold it and watch out its performance. Moreover, listed below are the points which make it the best suited ELSS Tax Saving Mutual Fund:
- It holds an asset size of Rs 9,518.03 crore for the quarter ended in September 2016.
- Investors can start with a minimum investment of Rs.500 in this scheme.
- Its portfolio holdings are from diversified categories and include Kotak Mahindra, Sun Pharma, Pidilite Ind, Bajaj Finance, HDFC Bank, Maruti Suzuki, and others.
- This Tax Saver Fund has been performing well and has generated 11.6% returns in the past year, and 22% annualised returns in five years compared to S&P BSE 200 benchmark of 12.7%.
The above-mentioned list is the result of our in-depth research and analysis of the top performing ELSS Tax Saving Mutual Funds in the country. MySIPonline.com is entirely dedicated to providing you with the best investment solutions and financial advisory services so that you can earn high profits in the future. Our certified fund advisors are always there to clear your doubts. So, if you are finding it difficult to choose between the different tax saving fund schemes, then you can take professional assistance regarding the same from our team.
