ELSS mutual funds is a mutual fund category which invests predominantly in equity and equity-related securities. These funds park at least 65% of the total assets in the equity shares and securities across the market cap. As per the Section 80C of the Income Tax Act, 1961, several investment instruments are being listed out which provides a deduction from the total taxable income of the assessees. The ELSS Funds is one of those listed instruments in Section 80C that aims to provide the same benefits to the investors. By investing in these tax saving mutual funds, one can claim a deduction from the total taxable income of an amount up to Rs.1.5 lakh.
ELSS - Tax Saving Mutual Funds Providing Capital Growth
Investing in ELSS funds is one of the best tax saving options providing tax deduction under Section 80C of the Income Tax Act. The tax saving plans are the best mutual fund investment plans which provide higher returns on the invested capital along with saving income up to Rs. 1.5 lakh to avail reduction in the tax liability. With a lock-in period of three years and investments made in the equity-related securities, These funds tend to provide the maximum benefits of earning wealth over time. Due to the maturity period of three years, the invested capital gets enough time to get enriched. To gain better understanding and know how ELSS funds provides higher earnings, read the content further.
Best 10 ELSS Tax Saving Funds to Invest:
Axis Long Term Equity Fund
Franklin India Taxshield Fund
DSP Tax Saver Fund
Reliance Tax Saver Fund
ICICI Pru Long Term Equity Fund
Aditya Birla Sun Life Tax Relief ‘96 Fund
Invesco India Tax Plan
Principal Tax Savings Fund
Tata India Tax Saving Fund
IDFC Tax Advantage Fund
Why to Invest in ELSS Mutual Funds
Equity Investments Providing Capital Growth - Being a category in the equity asset class, ELSS funds provide the benefits of equity investments in the long run. As we know that equities generate tremendous growth for the investors, in the long term, the funds also provides the same benefit. It helps in earning huge wealth for the investors and appreciates the capital in order to attain the long-term investment goals. After beating market volatility, the schemes in the tax saving plans generate higher returns.
Tax Savings Under Section 80C - The Income Tax Act provides tax deduction under Section 80C, and the best Equity Linked Savings Scheme Funds helps in attaining the same. One can easily avail the deduction up to Rs.1.5 lakh on the total income, and reduce taxes up to Rs.43650 in a financial year.
Lowest Lock-In Period - There are various tax saving options in India, but ELSS has the least lock-in of three years as compared to other alternatives. Accordingly, the money of the investors does not get blocked for a longer tenure, rather can be redeemed anytime after three years. In some other tax saving plans, the maturity is even up to fifteen years.
No Capital Gain Tax - The ELSS investments also provide the benefit of tax exemption on the income earned in the form of capital gain. This way, the investors need not pay any money to the taxman in terms of earnings from the sale of these funds.
Dividend & Growth Option - The investors have the option to invest their money either in the dividend or growth option plan through SIP or lumpsum. The dividend plans are those wherein the investors earn dividend or income regularly, while in the case of growth option, these provide the capital appreciation after a period of time.
How to Select the Best Tax Saving Mutual Fund
Tax saving funds are the ones that mainly tend to provide the benefit of claiming a deduction on the income. While selecting these schemes, one needs to be extra careful as several provisions and factors need to be kept in mind. Your must have an in-depth study of each and every tax saving option available to you. Don’t just go by mouth publicity. The reason being is that the ELSS mf suitable for one person may not have the same efficiency for the other. Thus, it is essential that before investing, one must carefully study the market position of all the tax saver schemes. The expert's team of MySIPonline shall provide you with the best benefit for the same. They will guide you about which ELSS scheme is best suited to your requirement and why you should opt for them.
Comparison of various investment avenues under section 80C based on the following parameters:
Investment Under 80C
Tax on Produced Returns
Last Year Returns
15% to 18%
Public Provident Fund (PPF)
7% to 8%
6% to 7%
7% to 7.7%(Last 1-Yr)
National Pension Scheme (NPS)
8% to 10%
Withdrew After Retirement
40% is Taxable
National Saving Certificate (NSC)
7% to 8%
ELSS under Section 80C of Income Tax Act, 1961 is proposed to provide tax saving benefits to an individual and HUFs (Hindu Undivided Families). If the income is invested in defined avenues, then they can get a claim up to Rs 1.5 lakh as a deduction from the total income in a financial year depending upon their tax slabs. With investment in defined investment/expenditure, an individual and HUF can reduce the total taxable income and the total payable tax. Section 80C has a long list of options such as ULIP, Life Insurance, Annuity Plan, PPF, NSC, Post office term deposit of 5-years, fixed deposits for 5-years and Senior Citizen Savings Schemes. For the investors, how to save tax query has been resolved with such a list of options offering tax deduction benefits. At present, most of the investors are considering tax saving mutual funds (ELSS) online as the best tax saving option as it provides comparatively higher returns with lowest lock-in period among all other options falling under Section 80C.
Who Should Invest in ELSS Funds?
As per the income tax slab, the assessees having income more than Rs.2,50,000 are required to pay taxes as per the rate applicable to them. Accordingly, the investors who come under the taxable slab and want to reduce their tax liability, should park their money in the ELSS funds. Furthermore, if you need to calculate your taxability, then you can use our ‘Tax Calculator’ which will help you in computing the exact sum payable for taxes and will also help you in planning how to reduce it. Investments in ELSS Scheme can be initiated with just Rs.500 and thus, investors have the benefit of starting SIP with a small sum of money and gain tremendous income.
ELSS Mutual Funds Online - Modes of Investment
The online investment is the best way to start investing in the best elss funds. We provide a wide range of online tools and solutions that will help you in making simplified investment. You can opt for the tax calculator, tax planning, best ELSS Mutual Funds and other solutions to make the right choice and start online investment in mf. The online SIP is further an additional solution that will simplify your investment journey and let you make better earnings with tax savings.
I recently invested in the best ELSS funds through this portal to get tax benefits. I would like to share my experience of investing through this portal, i.e., MySIPonline. Absolutely fantastic, and effortless. As this team always says that ‘simplifying investments’ they really mean it. I am experiencing an amazing journey of investing in MFs. Thanks to the owner of this platform to bring such an excellent medium for investment. Great Job!!! Aakash Kalra
I do not have a healthy approach to the financial fundamentals, but still, I am availing tax-benefits through tax saving funds (ELSS) efficiently. Furthermore, I am earning excellent profits on my investments. All these are possible because of the supportive team of MySIPonline; they helped me at every level to get me the best exposure in the investment world. They also have up-to-date content on their website which is self-explanatory and provides updated information. Thanks to the entire team. Keep the good work doing. Santosh Divakar
I was paying heavy taxes every year when my boss asked me to invest in the ELSS mutual funds. I was surfing for the plans online for investing when I came across this website. The portal is offering the best services in the industry as well as simplify my investments. The team understood my requirements as well as financial status and offered me the best schemes to save taxes. Thank you, Guys! Sachin Dave
I always pay a large amount of my income as taxes. But then my colleague suggested me to invest in ELSS funds as well as this investment platform. I connect with them via online chat, told them about my goals. They contacted me within a few hours and understood my background, future goals as well as risk appetite. They offered me the best funds that came under this category who are
performing well. I invested in one scheme, who is offering me good returns. Thank you MySIPonline!
I am so happy to have found the schemes under ELSS category as it has not only helped me save tax but also provided reasonable returns. The best part is the lock-in period which is only three years. For me, it has proved to be the most suitable tax saving option and investing through MySIPonline was like a cherry on top. Such simple investment process and so helpful financial experts, Thank You team. Keep up the good work! Shantanu Goyal
I have registered at this portal after seeing its four-star ratings and invested in ELSS funds. I downloaded its app from google play store for more efficiency. It is awesome!!! Offers great services, and suggestions to the investors like me. It’s just been two months that I had registered here and started investing. So I don’t have much to say anything about investing and my profits. But, I can definitely say about the services they provide. They are incomparable. Thanks! Kriti Raj Chouhan
2 years back I started my first job and in the first year was unaware that how much tax I have to pay without a proper tax planning. After realizing my mistake I started searching for options which can help me save tax. While searching I came across an article on How ELSS is better than your conventional tax saving method, which motivated me to start my investments. Currently I am saving around Rs 10000 per year through these and also making decent profits on my investments. Suresh Verma
Happy & easy life, even in the season of March. By investing in ELSS
mutual funds, I make my life tension free during the year-end. It helps me saving an excellent amount of money from my taxable income. It is nothing less than a gift that it allows a claim of up to Rs. 1.5 lakh each financial year. I got the second surprise when I came to know about its equity benefits. I was a fool that I never knew before about the long-term equity benefits of my tax saving investment. Thanks again to MySIPonline to let me know this fact. Now I am sure to continue my investment for long term. Kaviraj Shekhawat