These ELSS Funds Have Provided the Highest Returns in 5 Years!
Last Updated : July 26, 2019, 3:03 p.m.
Equity-linked Savings Scheme (ELSS) is a part of equity mutual funds that invest predominantly in stocks of different companies. The USP of this product is the tax saving benefits of up to ₹1.5 lakh in a financial year under Section 80C of the Income Tax Act. Yes, there’s a 3-year lock-in period but is shorter than what’s the case with its competing products such as tax saver fixed deposits, public provident fund (PPF), national savings certificate (NSC), etc. Apart from tax savings, ELSS investments can help you raise your capital significantly over time. Which are those ELSS funds that have raked in best returns for investors in 5 years? Want to have a look at it? See it in this post.
Which ELSS Funds Have Generated Maximum Returns in a 5-year Period?
Check out the table below showing a list of top performers in ELSS category in 5 years, take a look.
| ELSS Funds | 5-year Return | Rating | |||
|---|---|---|---|---|---|
| Axis Long Term Equity Fund | 12.92% | 5 Star | |||
| DSP Tax Saver Fund | 11.64% | 4 Star | |||
| IDFC Tax Advantage (ELSS) Fund | 10.99% | 4 Star | |||
| Franklin India Taxshield Fund | 10.71% | 3 Star | |||
| Principal Tax Savings Fund | 9.96% | 3 Star | |||
| ICICI Prudential Long Term Equity Fund | 9.61% | 3 Star |
Note – The data is sourced from Value Research as on July 23, 2019, and pertains to the regular plan of the schemes shown above.
How to Invest in ELSS Funds Online?
You can invest in ELSS funds via SIP or lump sum. A Systematic Investment Plan (SIP) is a disciplined approach to investing in mutual funds at predetermined intervals – monthly, quarterly, half-yearly or annually. On the other hand, lump sum investments are made one time. What’s also different is the concept of lock-in period concept across these modes of investment.
A lump sum investment can be redeemed in full after the completion of three years. Whereas, in the case of an SIP, the investment will be redeemed in 3 years from the starting day of installment and so on. If you start investing ₹5,000 via SIP dated 25th July 2019, the redemption for the same would be 3 years later. Similarly, the redemption of the next month installment can be made a month later to that of the first installment. The redemption would thus pan out this way if you invest via SIP in an ELSS fund.
How to Invest in ELSS Funds at Wishfin?
You can invest in ELSS funds at Wishfin, a neutral financial marketplace that brings to you the best of mutual fund schemes to subscribe for. Below are the steps that you should follow to invest in ELSS funds.
- Go to www.wishfin.com
- Click on ‘Mutual Funds’
- Click on Login/Register
If you are a new investor, you need to register first.
Registration Process
- Provide your mobile number
- Click on ‘Next’
- Enter the One-time Password (OTP) received on your mobile number in the prescribed space
- Click on ‘Verify and Continue’
- Mention your name, email ID, the city you live in
- Create a password in line with the requirements laid down in terms of alphabets, numeric and special characters
- Click on Sign Up
The login access can thus be created.
Post Login
- Go to ‘Explore Mutual Funds’
- Click on ‘Save Tax’ icon
- A number of ELSS funds will appear on the screen
- Choose the ELSS fund you want to invest in
- Click on ‘Invest’ below the name of the chosen fund
Disclaimer – “Mutual fund investments are subject to market risks. Please read the scheme document carefully before investing”.