Highlights
- How investing in highest-rated ELSS Funds can help you save taxes and get impressive returns?
- Know about the portfolio composition of these highest-rated ELSS funds!
It’s December already and we are just three months away from the beginning of the new financial year. And as it is closing by, you must be looking for a suitable investment option that could help you in saving taxes. According to most financial experts, the best option remains the ELSS (Equity-linked Saving Schemes) that can help you save tax upto an amount of ₹ 46,800 under section 80C of the Income Tax Act. Also, some of the highest-rated ELSS funds have successfully delivered lucrative 15% to 18% returns to investors across different time zones.
An ELSS fund is primarily a tax saving mutual fund that invests in equity and equity-related instruments for both capital appreciation and tax-saving purposes. Leading rating agencies of India assigns the rating of ELSS funds in 1-5 stars. The performance determines the kind of rating the funds will get. Highest-rated ELSS funds possess features like shorter lock-in periods, higher returns, and flexibility in investment amount. So for your convenience, we have curated some of the top-rated ELSS funds by which you can achieve both investment and tax-saving goals.
| ELSS Mutual Funds | Rating | 1-Year Return | 3-Year Return | 5-Year Return | 10-Year Return |
|---|---|---|---|---|---|
| Mirae Asset Tax Saver | 5- Star | 13.74 | 17.88 | - | - |
| Axis Long Term Equity Fund | 5- Star | 13.71 | 16.26 | 10.98 | - |
| DSP Tax Saver | 4- Star | 15.14 | 12.68 | 10.45 | 13.18 |
| Motilal Oswal Long-term Equity Fund | 4- Star | 11.98 | 13.78 | - | - |
| Kotak Tax Saver Fund | 4- Star | 11.62 | 12.77 | 8.98 | 10.85 |
| Franklin India Taxshield Fund | 3- Star | 5.84 | 9.18 | 7.09 | 12.59 |
What is the Portfolio Composition in all these Highest-Rated ELSS Funds?
| ELSS Mutual Funds | Top Equity Holdings | ||||
|---|---|---|---|---|---|
| Mirae Asset Tax Saver | HDFC Bank, ICICI Bank, Reliance Industries, State Bank of India, Infosys, ITC, Axis Bank, Tata Consultancy Services, Laursen & Toubro, IndusInd Bank | ||||
| Axis Long Term Equity Fund | Bajaj Finance, Kotak Mahindra Bank, HDFC Bank, Avenue Supermarts, Tata Consultancy Services, Bandhan Bank, HDFC, Pidilite Industries, Infoedge (India), Maruti Suzuki India | ||||
| DSP Tax Saver | HDFC Bank, ICICI Bank, Axis Bank, Reliance Industries, Laursen & Toubro, State Bank of India, Bharti Airtel, Asian Paints, HPCL | ||||
| Motilal Oswal Long-term Equity Fund | ICICI Bank, HDFC Bank, Axis Bank, Maruti Suzuki India, HDFC Life Insurance, Laursen & Toubro, Kotak Mahindra Bank, Hindustan Unilever, Asian Paints, Page Industries | ||||
| Kotak Tax Saver Fund | Reliance Industries, HDFC Bank, ICICI Bank, Axis Bank, GSK Consumer Healthcare, Tata Consultancy Services, Laursen & Toubro, SRF, Infosys, AU Small Finance Bank | ||||
| Franklin India Taxshield Fund | Axis Bank, ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Power Grid Corporation, Grasim Industries, Infosys, Hindalco Industries, Mahindra and Mahindra, NTPC |
Note: All the data is sourced from Value Research Online as of December 4, 2019.