Hello Readers!

Are you also among those who are habituated of filing their taxes at the end? And now you are breathing out of your neck to get it done as soon as possible?

Well, if you are finding the last-minute answer for your tax troubles, then I will suggest this is the time you need to think about the tax-saving mutual fund schemes, ELSS (Equity Linked Saving Scheme).

ELSS or Equity Linked Saving Schemes, are Equity mutual fund schemes, made specifically, for those investors who want to generate wealth through investment, and at the same time, they also want tax-saving returns.

As per SEBI (Security Exchange Board of India) and Section 80C of The Income Tax Act, investment up to Rs 1.5 lakh per annum in ELSS mutual funds offer tax saving returns to its investors.

If you are thinking that investing in ELSS fund will save our tax, but what about the risk associated with the mutual fund investments. Well, you need not worry, risk in mutual funds are manageable, and with proper investment strategy, one can reduce the risk from their mutual fund portfolio.

How to Choose the Right ELSS Funds?

Let us know about the features that one should know before selecting the right ELSS mutual funds to invest in.

  • The fund should have invested a large percentage of their portfolio in equity
  • The lock-in period is 3 years (which is the shortest amongst all tax saving instruments).
  • You can reap the benefits of both capital appreciation from investments in equity along with saving tax.
  • You have the option of dividend payouts or choose growth options for capital appreciation.

Well, for you we have prepared a list of top 5 ELSS mutual funds, that you can consider investing in 2020. Let us know about these top ELSS funds.

1. Axis Long Term Equity Fund-Growth (ELSS)

This is an open-ended ELSS Fund scheme, run and managed by Axis Mutual Fund. This fund allows it, investors, to invest in a mix of large caps and select mid-caps, thus providing a good diversification. Being an Equity mutual fund, it has the potential to beat inflation and generate wealth in the long-term.

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

2. Aditya Birla Sun Life Tax Relief 96 – ELSS

It is also an open-ended ELSS fund run and managed by ABSL mutual fund, whose objective is to create long-term wealth through a portfolio with a target allocation of 80% in Equity, and 20% in Debt.

Before investing in it you should be aware that this scheme is slightly riskier and is prone to higher volatility, as it is managed with an aggressive strategy, by distributing 55% of its portfolio in mid-caps and small caps.

3. Tata India Tax Savings Fund – Growth (ELSS)

Another ELSS fund among the list of Top 5 Funds is Tata India Tax Savings Fund. This fund has its investment as 75.88% in large-cap stocks, 8.14% in mid-cap stocks, and 4.87% small-cap stocks.

This fund issues medium to long-term capital gains to its investors along with tax savings feature and pays special attention to the importance of capital appreciation. But at the same time, it is associated with high-risk and doesn’t give any guarantee on returns.

4. DSP Tax Saver Fund – Growth 

This fund is also an open-ended ELSS fund scheme run and managed by DSP mutual fund. This fund’s main agenda is to generate medium to long-term capital appreciation from a vast portfolio which consists of equity and equity-related securities of corporates.

This fund has its investment as 59.41% in large-cap stocks, 16.55% in mid-cap stocks, and 9.28% small-cap stocks.

5. Invesco India Tax Plan-Growth

 This is another open-ended ELSS scheme, run and managed by Invesco Mutual Fund. Its prime objective is to generate long-term capital appreciation from a wide range of equity and equity-related instruments.

This fund has its investment as, 57.09% in large-cap stocks, 18.09% in mid-cap stocks, and 4.6% in small-cap stocks. This fund is suitable for investors who are looking to invest money for at least 3 years and looking for additional benefits of income tax saving apart from higher returns expectations.

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).