What are Some of the Highest-Rated ELSS Funds Available Now?
Last Updated : Dec. 6, 2019, 3:58 p.m.
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.