Greeting To Our Readers! 

ELSS, or Equity Linked Saving Scheme, simply an efficient financial tool that helps you create wealth along with saving tax on your investment. That means a dual benefit, WEALTH CREATION + TAX SAVING!

Financial tools that are listed in Section 80C of the Income Tax Act, like ELSS, FD (Fixed deposit), PPF (Public Provident Fund), and many others help an individual save taxes. However, among all ELSS is taken as the most efficient way to save taxes!

ELSS is preferred Because of the following reasons:

• Tax-Free Returns- ELSS would attract Long Term Capital Gains (LTCG). Investors would be taxed at 10% (with no indexation) under the long-term Capital Gain tax. However, gains up to INR 1 lakh are free of tax., above that will be taxable at 10%.
• Minimum Investment Amount- Investors can invest via SIP (Systematic Investment Plan) in ELSS funds, that is they can even start investing with as low as Rs 500 per month.
• Least Lock-In Period- It has the least lock-in period that is only 3 years among all the section 80C financial tools.
• Equity Returns- ELSS invests in equity-related instruments the money you invest grows as the stock market grows. So, the gains are high in ELSS Funds.

Well, if you are planning to invest with the prominent objective to save your taxes then do plan it in the ELSS fund and enjoy the dual benefits, that is wealth creation along with tax saving!

Below, we are discussing some of the best ELSS Mutual Funds where one can plan their investments, do have a look!

Axis Long Term Equity Fund – Growth

An ELSS category equity mutual fund, run and managed Axis Mutual Fund House. The fund has 97.28% investment in Indian stocks, out of which 65.92% is in large-cap stocks, 18.35% is in mid-cap stocks, 4.09% in small-cap stocks.

The fund size (Asset Under Management) of the scheme is around Rs 30,520 crores and it charges a total expense ratio of around 1.66%. Fund has a lock-in period of three years, which means investors cannot withdraw their investment before 3 years of investment.

If the investors invest in ELSS mutual funds via SIP, then each SIP installment in his ELSS investment is locked for three years right from the date of its payment and cannot be redeemed before three years.

The prime objective of the fund is to generate income and long-term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity-related securities.

This fund is best recommended to investors looking to invest money for at least 3 years and looking for additional benefits of income tax saving apart from higher returns expectations.

Also, investors are made aware of the three-year lock-in period and the possibility of moderate losses during their investment in ELSS funds.

Aditya Birla Sun Life Tax Relief 96 - Regular Plan-Growth

An ELSS category equity mutual fund, run and managed Aditya Birla Sun Life Mutual Fund House. The fund has 99.84% investment in Indian stocks, out of which 37.17% is in large-cap stocks, 40.74% is in mid-cap stocks, 9.51% in small-cap stocks.

The fund size (Asset Under Management) of the scheme is around Rs 14,044 crores and it charges a total expense ratio of around 1.79%. Fund has a lock-in period of three years, which means investors cannot withdraw their investment before 3 years of investment.

If the investors invest in ELSS mutual funds via SIP, then each SIP installment in his ELSS investment is locked for three years right from the date of its payment and cannot be redeemed before three years.

The prime objective of the fund is long-term growth of capital through a portfolio with a target allocation of 80% equity, 20% debt, and money market securities.

This fund is best recommended to investors looking to invest money for at least 3 years and looking for additional benefits of income tax saving apart from higher returns expectations. Also, investors are made aware of the possibility of moderate losses during their investment in ELSS funds.

IDFC Tax Advantage (ELSS) Fund - Regular Plan-Growth

An ELSS category equity mutual fund, run and managed by IDFC Mutual Fund House. The fund has 97.39% investment in Indian stocks, out of which 48.09% is in large-cap stocks, 13.97% is in mid-cap stocks, 29.1% in small-cap stocks.

The fund size (Asset Under Management) of the scheme is around Rs 3,295 crores and it charges a total expense ratio of around 1.9%. Fund has a lock-in period of three years, which means investors cannot withdraw their investment before 3 years of investment.

If the investors invest in ELSS mutual funds via SIP, then each SIP installment in his ELSS investment is locked for three years right from the date of its payment and cannot be redeemed before three years.

The prime objective of the fund is to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities.

This fund is best recommended to investors looking to invest money for at least 3 years and looking for additional benefits of income tax saving apart from higher returns expectations. Also, investors are made aware of the possibility of moderate losses during their investment in ELSS funds.

To get more details about the fund you can refer to the fund fact sheet or you can get in touch with us. Call us on- 0612-6604453 or mail us at [email protected]

For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.

Happy Investing!

(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).