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ELSS Mutual Funds
ELSS Mutual Funds, or Equity Linked Savings Schemes, are the only mutual fund schemes that help investors save tax while aiming for long-term capital growth. These funds primarily invest in equities and also qualify for tax deductions under Section 80C of the Income Tax Act. Know more about ELSS Mutual Funds in the article below.
Investment Plans
-
Guaranteed Tax Savings
Under sec 80C & 10(10D) -
₹1 Crore
Invest ₹10k per month* -
Zero LTCG Tax
Top performing plans˜ with High Returns**
Invest ₹10K/month & Get ₹1 Crore returns*
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Mutual Fund
- ELSS Mutual Funds
Best SIP Funds
Payment Mode
Invest
₹ 10,000
Invest for
Instant tax receipt
Large Cap Equity Fund
AUM (Cr)
₹2,780
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 21.36 %
Instant tax receipt
Instant tax receipt
Accelerator Mid-Cap Fund II
AUM (Cr)
₹5,888
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 20.77 %
Instant tax receipt
Opportunities Fund
AUM (Cr)
₹38,561
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 22.35 %
Instant tax receipt
Diversified Equity Fund
AUM (Cr)
₹3,683
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 17.55 %
Instant tax receipt
Frontline Equity Fund
AUM (Cr)
₹4,489
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 20.48 %
Instant tax receipt
Grow Money Plus Fund
AUM (Cr)
₹454
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 17.39 %
Instant tax receipt
Instant tax receipt
Instant tax receipt
Large Cap Equity Fund
AUM (Cr)
₹2,780
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 21.36 %
Diversified Equity Fund
AUM (Cr)
₹3,683
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 17.55 %
Frontline Equity Fund
AUM (Cr)
₹4,489
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 20.48 %
Grow Money Plus Fund
AUM (Cr)
₹454
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 17.39 %
Growth Super Fund
AUM (Cr)
₹13,662
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 16.87 %
Accelerator Mid-Cap Fund II
AUM (Cr)
₹5,888
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 20.77 %
Opportunities Fund
AUM (Cr)
₹38,561
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 22.35 %
Growth Opportunities Plus Fund
AUM (Cr)
₹1,025
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 19.82 %
Classic Opportunities Fund
AUM (Cr)
₹13,991
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 18.56 %
Opportunities Fund
AUM (Cr)
₹3,493
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 19.9 %
Equity Top 250 Fund
AUM (Cr)
₹557
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 16.83 %
Whole Life Income Fund
AUM (Cr)
₹849
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 6.03 %
Individual Preserver Pension Fund
AUM (Cr)
₹140
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 5.52 %
Whole Life Aggressive Growth Fund
AUM (Cr)
₹912
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 20.06 %
Save N Grow Money Fund
AUM (Cr)
₹65
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 10.61 %
Asset Allocation Fund II
AUM (Cr)
₹297
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 12.07 %
Multi Cap Balanced Fund
AUM (Cr)
₹2,027
Estimated Value
₹
After 5 years
Returns (p.a.)
+ 12.65 %
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What are ELSS Mutual Funds?
ELSS Mutual Funds are equity-oriented mutual funds. This means that at least 80% of the scheme’s corpus is invested in equity and equity-related instruments. These funds primarily focus on generating long-term capital growth through equity investments. Investors can claim a tax deduction of up to ₹1.5 lakh per financial year under Section 80C of the Income Tax Act. Apart from tax benefits, ELSS also offers potential returns that are market-linked. Additionally, the returns earned after the three-year lock-in period are treated as Long Term Capital Gains (LTCG) and taxed at 10% if they exceed ₹1 lakh.
Key Features of ELSS Mutual Funds
Mutual funds offer various benefits to investors. The features of ELSS Mutual Funds are:
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Shortest Lock-in: 3-year mandatory lock-in period—shorter than other tax-saving options like PPF or NSC.
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Growth Potential: Invests in equities, which have the potential to beat inflation and deliver higher returns over time.
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Low Entry Point: You can start investing with just ₹500.
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ELSS mutual funds Tax Benefits: Deduction of up to ₹1.5 lakh under Section 80C, helping you save up to ₹46,800 in taxes (based on your tax slab).
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Diversified Portfolio: Funds are spread across sectors and market caps (large, mid, and small), helping reduce risk.
- Insurance Companies
- Mutual Funds
| Returns | ||||
|---|---|---|---|---|
| Fund Name | 5 Years | 7 Years | 10 Years | |
| High Growth Fund Axis Max Life | 32.5% | 21.1% |
18.6%
View Plan
|
|
| Top 200 Fund Tata AIA Life | 30.5% | 21% |
18.2%
View Plan
|
|
| Accelerator Mid-Cap Fund II Bajaj Allianz | 20.77% | 12.18% |
13.48%
View Plan
|
|
| Opportunities Fund HDFC Life | 22.35% | 14.28% |
13.41%
View Plan
|
|
| Equity II Fund Canara HSBC Life | 16.54% | 9.58% |
9.52%
View Plan
|
|
| Grow Money Plus Fund Bharti AXA | 17.39% | 12.97% |
13.01%
View Plan
|
|
| Multiplier Birla Sun Life | 22.67% | 13.96% |
14.35%
View Plan
|
|
| Equity Top 250 Fund Edelwiess Life | 16.83% | 11.21% |
10.5%
View Plan
|
|
| Opportunities Fund ICICI Prudential Life | 19.9% | 12.78% |
11.61%
View Plan
|
|
| Balanced Fund LIC India | 10.4% | - |
-
View Plan
|
|
Fund rating powered by
Last updated:
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| Returns | ||||
|---|---|---|---|---|
| Fund Name | 3 Years | 5 Years | 10 Years | |
| Active Fund QUANT | 23.92% | 31.48% |
21.87%
|
|
| Flexi Cap Fund PARAG PARIKH | 20.69% | 26.41% |
19.28%
|
|
| Large and Mid-Cap Fund EDELWEISS | 22.34% | 24.29% |
17.94%
|
|
| Equity Opportunities Fund KOTAK | 24.64% | 25.01% |
19.45%
|
|
| Large and Midcap Fund MIRAE ASSET | 19.74% | 24.32% |
22.50%
|
|
| Flexi Cap Fund PGIM INDIA | 14.75% | 23.39% |
-
|
|
| Flexi Cap Fund DSP | 18.41% | 22.33% |
16.91%
|
|
| Emerging Equities Fund CANARA ROBECO | 20.05% | 21.80% |
15.92%
|
|
| Focused fund SUNDARAM | 18.27% | 18.22% |
16.55%
|
|
Last updated: June 2025
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How Do ELSS Mutual Funds Work?
When you invest in an ELSS fund, your money is pooled with that of other investors and allocated primarily into equity markets. Experienced fund managers select stocks based on research, aiming for long-term returns. You can invest a lump sum or start a Systematic Investment Plan (SIP) to invest small amounts regularly.
Once invested, your funds are locked for 3 years, after which you can redeem them or continue staying invested for more growth.
Why Should You Invest in ELSS Funds?
ELSS Mutual Funds is one of the best investment options that offer multiple advantages that go beyond just saving tax:
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Help you save taxes while growing your money over time.
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Come with a shorter 3-year lock-in period compared to other 80C options like PPF or NSC.
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Have the potential to deliver higher returns than traditional tax-saving instruments like fixed deposits.
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Ideal for long-term goals such as buying a house, funding your children’s education, or planning your retirement.
How to Invest in ELSS Mutual Funds?
You can invest in ELSS Mutual Funds through:
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Online investment platforms
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Your bank or demat account
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Mutual fund websites or apps
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SIP or lump-sum, as per your convenience
Choosing the Right ELSS Mutual Fund
Consider the following when selecting an ELSS fund:
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Risk Appetite: Aggressive investors may go for small/mid-cap heavy funds
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Past Performance: Look at 5-year or 10-year returns (but don’t rely on past returns alone).
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Fund Manager’s Track Record
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Consistency: Choose funds that deliver stable returns across market cycles.
ELSS vs Other 80C Investments
Find out how ELSS Mutual Funds compare with other popular tax-saving investment options:
| Investment Option | Returns (Approx.) | Lock-in Period | Tax on Returns |
| PPF | 7–8% | 15 years | Tax-free |
| NSC | 7–8% | 5 years | Taxable |
| FD (5-Year) | 5–6% | 5 years | Taxable |
| ELSS | 12–18% | 3 years | LTCG Tax @10% over ₹1L |
List of Top 10 ELSS Mutual Funds
The list of top 10 ELSS Mutual Funds are:
| S.No | ELSS Mutual Funds |
Annualised Returns |
||
| 5 Year | 10 Year | Since Inception | ||
| 1. | HDFC ELSS Tax Saver | 25.37% | 13.47% | 18.39% |
| 2. | SBI Long Term Equity Fund | 26.43% | 14.25% | 12.43% |
| 3. | Bandhan ELSS Tax saver Fund | 24.94% | 14.00% | 17.84% |
| 4. | DSP ELSS Tax Saver Fund | 24.14% | 15.44% | 15.33% |
| 5. | Quant Elss Tax Saver Fund Direct-growth | 31.89% | 21.31% | 20.50% |
| 6. | DSP ELSS Tax Saver Fund Direct Plan Growth | 25.31% | 16.54% | 18.18% |
| 7. | Motilal Oswal ELSS Tax Saver Fund | 26.84% | 16.61% | 17.33% |
| 8. | Franklin India ELSS Tax Saver Fund | 24.87% | 13.03% | 20.96% |
| 9. | Bank of India ELSS Tax Saver Fund | 23.63% | 15.17% | 18.46% |
| 10. | ICICI Prudential ELSS Tax Saver | 21.37% | 12.92% | 19.08% |
Conclusion
ELSS Mutual Funds are ideal for taxpayers with a long-term outlook and moderate to high risk appetite. You can start with just ₹500, making them easily accessible. Under Section 80C, investments of up to ₹1.5 lakh qualify for tax deductions. ELSS comes with a 3-year lock-in—the shortest among 80C options—and being market-linked, it has historically delivered higher returns than traditional instruments like FDs or NSC.
FAQs
-
What is an ELSS Mutual Fund?
An equity mutual fund that helps you save tax under Section 80C and grow wealth over time. -
Is ELSS safe?
ELSS carries market risk as it invests in equities. It’s not risk-free but suitable for long-term investors. -
When can I withdraw ELSS funds?
After the 3-year lock-in period, SIPs have individual lock-ins per installment. -
What is the minimum investment in ELSS Mutual Funds?
You can make investments as low as ₹500 and start an ELSS SIP. -
Are ELSS returns taxable?
Returns above ₹1 lakh in a year are taxed at 10% as Long-Term Capital Gains (LTCG)
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
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