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Top Tax Saving Mutual Funds

Top Tax Saving Mutual Funds
Tax Saving | October 29

A tax saving mutual fund (Equity Linked Savings Scheme) is one of our most preferred source of tax saving instrument. An ELSS is a mutual fund that invests in equity markets.

The features of ELSS are the following –

·        Investment upto Rs 1,50,000  under Section 80C that directly saves Rs 45,000 in taxes

·        Average returns of ~ 15% over a long term period that is much higher than other investment options like PPF, PF and others

·        Lock-in of 3 years

 

We have written multiple blogs comparing multiple investment options that are available. The blogs can be found below –

https://www.finchikitsak.com/blog/equity-linked-savings-scheme-elss-vs-provident-fund-pf_1019

https://www.finchikitsak.com/blog/how-should-you-manage-your-tax-saving-investments_13

https://www.finchikitsak.com/blog/comparison-of-investment-options-under-section-80c_1

 

We continuously review the fund performances to ensure that the best funds are selected for our clients. Though the equity markets have seen a decline of almost 20% in the last few months, we would like to iterate that equity markets by their very nature exhibit high volatility. Our almost 30+ years of experience in the markets has thought us that these times create opportunities for long term investors like us.

We have evaluated various ELSS fund performance after the recent decline in the stock market and. Even after the recent decline, some funds have been able to deliver good returns as shown below. During our periodic analysis, we usually consider funds having atleast 3 years of performance history along with assets under management, fund house and concentration index amongst other factors. The top tax saving mutual funds can be found below -


Name

AUM (Crore)

3-Yrs Ret (%)

5-Yrs Ret (%)

10-Yrs Ret (%)

Since Launch (%)

L&T Tax Advantage Fund-Growth

3,181

9.9

16.1

18.6

13.6

HDFC Long Term Advantage Fund - Growth

1,476

9.9

15.4

17.9

21.3

IDFC Tax Advantage (ELSS) Fund-Growth

1,615

9.5

16.7

-

17.8

Aditya Birla Sun Life Tax Relief 96 - Growth

6,628

9.1

18.9

19.1

10.2

Tata India Tax Savings Fund-Growth

1,417

8.3

-

-

11.2

Invesco India Tax Plan – Growth

609

8.2

17.8

20.2

13.6

DSP Tax Saver Fund - Growth

4,373

8.1

16.4

18.4

12.7

Axis Long Term Equity Fund - Growth

16,999

7.7

19.8

-

16.6

ICICI Prudential Long Term Equity Fund (Tax Saving) – Growth

5,386

7.2

16.2

20.3

20.1

Category Average

-

6.8

15.3

16.8

11.7

NIFTY 200 TRI

-

8.5

13.3

16.7

13.6

 

The above list provides you with a Top 10 Tax Saving Mutual Funds.


To have a detailed review of the fund, please visit the link –

https://www.finchikitsak.com/mutual-funds/category-returns-detail.aspx?Category=8

Do let us know in case of any questions.

Happy investing

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Kamal Jeet GuptaFounder

Kamal Jeet Gupta is the founder of FinChikitsak.

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