Best ELSS Mutual Funds for Tax Saving Under 80C

Here are a few reasons why ELSS is a preferred tax-saving tool:

• Tax Benefit: Investments up to ₹1.5 lakh in ELSS funds are eligible for tax deductions.
• Shortest Lock-in Period: Only 3 years, compared to 5 years in FD and PPF.
• High Returns Potential: As these funds invest in equities, they have the potential to offer higher returns compared to traditional 80C options.
• SIP Option Available: You can invest a fixed amount each month, promoting disciplined investing.

Key Highlights:

• 3-Year Return: ~30% CAGR
• Expense Ratio: Moderate
• Risk Profile: High
• Lock-in: 3 years (as with all ELSS)

Why Consider Quant ELSS Tax Saver Fund?

Quant ELSS Tax Saver Fund has become one of the top-performing funds in recent years. It employs an aggressive investment style, frequently shifting sectors in response to market trends. The fund manager chooses stocks with high potential and makes strategic investments to capitalize on short- to medium-term opportunities. This active strategy has helped the fund deliver higher returns compared to many of its peers.

Ideal for: Investors with a high risk tolerance and a long-term horizon who seek high-growth opportunities.

Key Highlights:

• 3-Year Return: ~16% CAGR
• Expense Ratio: Low to Moderate
• Risk Profile: Moderate
• AUM: One of the largest among ELSS funds

Why Consider Axis Long Term Equity Fund?

Axis Long Term Equity Fund has built a reputation as a quality-focused, stable performer over the years. The fund invests in companies with strong fundamentals, growth potential, and robust corporate governance, primarily in the large-cap space.

Ideal for: Conservative investors seeking steady long-term returns with relatively lower volatility compared to other ELSS funds.

Key Highlights:

• 3-Year Return: ~18% CAGR
• Expense Ratio: Competitive
• Risk Profile: Moderate to High
• Fund Strategy: Diversified equity focus

Why Consider Mirae Asset Tax Saver Fund?

Mirae Asset Tax Saver Fund provides an excellent risk-reward balance, investing across large and mid-cap stocks. It is known for its bottom-up stock picking strategy and solid risk-adjusted returns.

Ideal for: Investors looking for a balanced exposure to equities and aiming for long-term wealth accumulation, along with tax savings.

Canara Robeco Equity Tax Saver Fund - Key Highlights:

• 3-Year Return: ~17% CAGR
• Expense Ratio: Low
• Risk Profile: Low to Moderate
• Fund Philosophy: Conservative and quality-oriented

Why Consider Canara Robeco Equity Tax Saver Fund?

Canara Robeco Equity Tax Saver Fund has gained traction due to its consistent performance with lower risk, thanks to its focus on high-quality large-cap stocks. It's managed conservatively, making it less volatile during market corrections.

Ideal for: Risk-averse investors who prefer capital preservation with moderate returns over aggressive growth.

DSP Tax Saver Fund - Key Highlights:

• 3-Year Return: ~15% CAGR
• Expense Ratio: Moderate
• Risk Profile: Moderate
• Diversification: Across market caps and sectors

Why Consider DSP Tax Saver Fund?

DSP Tax Saver Fund offers a diversified portfolio and follows a disciplined investment process. The fund manager emphasizes stock selection based on growth at a reasonable price (GARP), which helps balance valuation and growth.

Ideal for: Investors who prefer a well-diversified, moderately risky investment approach for long-term tax savings.

Note: Past years' performance is not indicative of future results, but the current market can be. Always consider your clear financial goals and risk tolerance before investing.

When choosing an ELSS mutual fund, you should consider the following factors or consult an experienced mutual fund advisor:

• Fund Performance: Analyze long-term (3 to 5 years) returns.
• Fund Manager's Track Record: A skilled fund manager plays a critical role in performance.
• Expense Ratio: A lower expense ratio means better net returns.
• Portfolio Quality: Look at the underlying stock selection and sector allocation.

Tax Implications:

• Investment Tax Benefit: Up to ₹1.5 lakh deduction under Section 80C.
• Capital Gains Tax: Gains above ₹1 lakh are taxed at 10% after the 3-year lock-in.