Dec 13, 2016 3 min read

Top 5 ELSS Mutual Fund Schemes to Save Tax in March 2017

The financial year 2016-17 is on the verge of ending soon. Here are the top ELSS funds you should invest in to save your taxes in March 2017.
The year 2017 is approaching fast, and we all are setting our moods to enjoy the new year celebrations. But apart from that, one must not forget that the financial year 2016-17 is on the verge of ending in March 2017, which would be the time to file tax returns. Have you planned your taxes for this year or still looking for alternatives to opt from? Well, now is the absolute time to manage your investment in order to save on taxes!

Whenever it comes to tax savings, the best option available is ELSS Mutual Funds. These funds fall under the EEE(Exempt-Exempt-Exempt) model of the Income Tax Act. Investing in these funds provides tax exemption up to Rs.1,50,000 under section 80C of Income Tax Act, in a particular financial year. So if you have not planned your investments yet in order to avail this benefit, then you must give it a start now.

Here are the best-performing ELSS Mutual Fund schemes recommended by our experts which would help in saving on taxes and generate considerable returns over a period of time.

1. Reliance Tax Saving ELSS Fund (G)

Fund House: Reliance Mutual Fund
Objective: To produce long-term capital appreciation along with tax saving.
NAV: Rs.48.55 as on December 09, 2016
CRISIL Ranking: ‘Third’ in ELSS Category
Asset Size: Rs.6,026 crore as on October 31, 2016
Annualised Returns for Three-Year Investment: 26%
Investment Options: SIP & Lump Sum

2. Axis Long-Term Equity Fund (G)
Fund House: Axis Mutual Fund
Objective: To enhance investors’ wealth with a diversified portfolio and provide tax exemptions under Section 80C.
NAV: Rs.31.028 as on December 09, 2016
CRISIL Ranking: Ranked ‘Second’ in ELSS Category
Asset Size: Rs.10,999 crore as on October 31, 2016
Annualised Returns for Three-Year Investment: 22.21%
Investment Options: SIP & Lump Sum

3. DSP BlackRock Tax Saver Fund (G)
Fund House: DSP BlackRock Mutual Fund
Objective: To generate medium- to long-term capital growth from a diversified portfolio and to enable investors to avail deduction from total income under Section 80C of the Income Tax Act,1961.
NAV: Rs.36.683 as on December 09, 2016
CRISIL Ranking: Ranked ‘Second’ in ELSS Category
Asset Size: Rs.1,458 crore as on November 30, 2016
Annualised Returns for Three-Year Investment: 22.50%
Investment Options: SIP & Lump Sum

4. Birla Sun Life Tax Relief 96 (G)
Fund House: Birla Sun Life Mutual Fund
Objective: To offer long-term growth of capital through a portfolio with a target allocation of 80% in equity, and 20% debt and money market securities.
NAV: Rs.22.630 as on December 09, 2016
CRISIL Ranking: Ranked ‘First’ in ELSS Category
Asset Size: Rs.2,358 crore as on November 30, 2016
Annualised Returns for Three-Year Investment: 21.5%
Investment Options: SIP & Lump Sum

5. Franklin India Tax Shield (G)
Fund House: Franklin Templeton Mutual Fund
Objective: To offer medium to long-term growth of capital along with income tax rebate under Indian tax regime.
NAV: Rs.447.181 as on December 09, 2016
CRISIL Ranking: Ranked ‘Second’ in ELSS Category
Asset Size: Rs.2,442 crore as on October 31, 2016
Annualised Returns for Three-Year Investment: 20.50%
Investment Options: SIP & Lump Sum

Planning in advance has proved to be beneficial in every parlance as it generates favourable results. At present, when we are awaiting the new year and expecting some amazing experiences, we must make certain plans for saving our taxes for this year so that we could manage our finances well in the future and enhance our wealth. These ELSS Funds are among the best schemes to help you avail Section 80C benefits and reduce the tax liability.

If you further need advice on planning your finances and need tax-saving solutions, you must avail the financial advisory services by our experts who would help you in making a worthwhile investment plan as per your needs and preferences. MySIPonline and its team are available at your service 24/7.

Disclaimer:- MySIPonline vouches for the integrity, certainty, reliability and accuracy of any content published via articles, handles, papers, charts, or in any other form or manner on its website, or the information contained, published or exhibited on any other website which in any manner is linked with MySIPonline, and clarifies that all the data or figures available on the website are solely for illustrative and educational purpose. The recommendations or fund suggestions are incidental or ancillary to the mutual fund distribution which are made in good faith in reference to the prevailing trends of the financial or securities market. The information and suggestions provided by MySIPonline through its articles or other content postings are for informative purpose only and in no context related to an investment, financial or tax advice. MySIPonline intends to abide by the current SEBI guidelines and requirements and hence, holds no intention of bestowing financial advice.