ELSS Funds

Benefits of Investing in an ELSS Mutual Fund?

There are several ELSS tax benefits offered to investors from this category such as:

• Tax Advantages

  By investing in ELSS funds, you can save up to ₹1.5 lakh per financial year. These savings come from the long-term capital gains (LTCG) on ELSS funds. The tax deductions available under Section 80C of the Income Tax Act, 1961, help reduce your taxable income.

• Lowest Lock-in Period

  These investments have a lock-in term of three years, which is the shortest of all tax-saving alternatives. During this period, the investments cannot be redeemed. Once the ELSS lock-in period ends, investors have the flexibility to either redeem the funds as a Lumpsum or opt for a Systematic Withdrawal Plan (SWP) according to their financial needs.

• Higher Return Potential

  ELSS funds primarily allocate investments to equities, which have historically offered better returns compared to traditional tax-saving instruments like Public Provident Funds (PPFs) or Fixed Deposits (FDs). The potential for long-term growth in ELSS funds is significant, particularly when investments are maintained over an extended period.

• Systematic Investment Plan (SIP)

  Investing in ELSS funds via SIP allows you to invest a fixed amount regularly, which helps in averaging the investment cost and managing market fluctuations.

List of 3 Best ELSS Funds For SIP 2024

Let us look closely at the 3 Best ELSS Mutual Funds in India to invest in:

1. Bandhan ELSS Tax Saver Fund

   The Bandhan ELSS Tax Saver Fund, launched on December 26, 2008, has an AUM of ₹6,857.69 crore. It has delivered strong average annualized returns of 18.49% over 3 years and 17.21% over 5 years, outperforming benchmarks. The fund targets long-term growth by investing in profitable growing companies, using thorough research and leader engagement. Its diversification and value-buying strategies help manage risk and reduce volatility, ensuring consistent, strong returns.

2. Quant ELSS Tax Saver Fund

   The Quant ELSS Tax Saver Fund, launched on April 1, 2000, has ₹10,490.93 crore in AUM. It delivers strong returns, averaging 25.59% over 3 years and 22.26% over 5 years. The fund actively manages investments, focusing on high-growth sectors and stocks. It uses predictive analysis to find promising stocks early and strategically time’s buys and sells to maximize returns. This approach has consistently yielded strong performance over the past 4 years.

3. Mirae Asset ELSS Tax Saver Fund

   The Mirae Asset ELSS Tax Saver Fund, launched in December 2015, manages ₹24,347.21 crore in assets. It has delivered strong returns averaging 20.22% over 3 years and 19.8% over 5 years. The fund uses a bottom-up approach, focusing on growth-oriented businesses across large-cap, mid-cap, and small-cap stocks to balance risk and growth. With a history of successful active management, it offers flexibility across market sizes and styles to deliver value to investors.

You can use the ELSS SIP Calculator to get estimated returns on your investments.

How to Invest SIP in ELSS Mutual Fund via MySIPonline?  

The steps given below will be your useful step-by-step approach to investing in ELSS Mutual Funds.

Step 1: Log in to MySIPonline

Step 2:  Verify your KYC status and complete Video KYC if necessary.

Step 3: Fill details of PAN card, Aadhaar number, bank details, nominee and signature.

Step 4: Browse top funds from the respective AMC or consult an expert.

Step 5: Choose your preferred ELSS Mutual fund.

Step 6: Add funds to your cart and decide between SIP and lump sum investment.

Step 7: Make a payment using UPI or net banking.

Step 8: Monitor investment daily on the dashboard and use our analysis tools to manage it.

These steps are a simple way to get started, allowing you to invest via SIP for increased portfolio flexibility.