ELSS vs SIP

Differentiating between ELSS and SIP can be challenging because they serve complementary roles in an investor's portfolio. ELSS focuses on tax-saving and potential wealth creation through equity exposure, while SIP provides a disciplined approach to investing, ensuring consistency. When used together, ELSS through SIPs offers investors a powerful tool for tax-efficient wealth creation while creating financial discipline.

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SIP Plan Benefits
Start SIP with as low as ₹1000
Start SIP with as low as ₹1000
No hidden charges
No hidden charges
Save upto ₹46,800 in Tax
Save upto ₹46,800 in Taxunder section 80C^
Zero LTCG Tax
Zero LTCG Tax
Disciplined & worry-free investing
Disciplined & worry-free investing

Payment Mode
Invest
₹ 10,000
Invest for
AUM (Cr)

₹10,554

NAV

116.45

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 28.6 21.1 17.8 %

Instant tax receipt
AUM (Cr)

₹2,693

NAV

72.37

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 21.15 16.06 15.45 %

Instant tax receipt
AUM (Cr)

₹3,282

NAV

71.27

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 21.11 16.44 15.26 %

Instant tax receipt
AUM (Cr)

₹5,681

NAV

82.2

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.99 12.88 14.99 %

Instant tax receipt
AUM (Cr)

₹36,935

NAV

77.31

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 22.26 14.98 14.74 %

Instant tax receipt
AUM (Cr)

₹433

NAV

68.98

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.84 13.72 14.51 %

Instant tax receipt
AUM (Cr)

₹4,390

NAV

69.19

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.88 14.95 14.43 %

Instant tax receipt
AUM (Cr)

₹3,552

NAV

41.8

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 18.02 13.46 14.23 %

Instant tax receipt
AUM (Cr)

₹7,241

NAV

156.14

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.8 13.46 14.05 %

Instant tax receipt
AUM (Cr)

₹235

NAV

50.12

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.51 14.99 13.97 %

Instant tax receipt
AUM (Cr)

₹2,693

NAV

72.37

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 21.15 16.06 15.45 %

AUM (Cr)

₹3,282

NAV

71.27

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 21.11 16.44 15.26 %

AUM (Cr)

₹433

NAV

68.98

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.84 13.72 14.51 %

AUM (Cr)

₹4,390

NAV

69.19

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.88 14.95 14.43 %

AUM (Cr)

₹3,552

NAV

41.8

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 18.02 13.46 14.23 %

AUM (Cr)

₹7,241

NAV

156.14

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.8 13.46 14.05 %

AUM (Cr)

₹235

NAV

50.12

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.51 14.99 13.97 %

AUM (Cr)

₹104

NAV

56.2

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.53 14.67 13.69 %

AUM (Cr)

₹2,935

NAV

69.15

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 16.99 13.12 13.41 %

AUM (Cr)

₹13,106

NAV

82.27

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.28 12.87 13.19 %

AUM (Cr)

₹10,554

NAV

116.45

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 28.6 21.1 17.8 %

AUM (Cr)

₹5,681

NAV

82.2

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.99 12.88 14.99 %

AUM (Cr)

₹36,935

NAV

77.31

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 22.26 14.98 14.74 %

AUM (Cr)

₹2,211

NAV

63.11

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 27.04 21.38 20.21 %

AUM (Cr)

₹1,021

NAV

74.01

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.07 14.65 14.93 %

AUM (Cr)

₹13,589

NAV

69.6

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 19.01 13.69 13.48 %

AUM (Cr)

₹3,406

NAV

60.12

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.26 13.48 12.96 %

AUM (Cr)

₹1,125

NAV

53.53

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 19.1 12.84 12.63 %

AUM (Cr)

₹528

NAV

57.86

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.24 11.99 11.77 %

AUM (Cr)

₹831

NAV

40.64

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 6.16 7.96 7.71 %

AUM (Cr)

₹1,034

NAV

42.45

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 6.1 8.03 7.57 %

AUM (Cr)

₹488

NAV

38.29

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.84 8.01 7.52 %

AUM (Cr)

₹144

NAV

34.78

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.62 7.56 7.33 %

AUM (Cr)

₹71

NAV

40.91

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.65 7.41 7.22 %

AUM (Cr)

₹123

NAV

29.5

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 6.12 7.08 7.19 %

AUM (Cr)

₹198

NAV

46.95

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.08 7.44 7.13 %

AUM (Cr)

₹19,241

NAV

49.7

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.61 7.32 7.04 %

AUM (Cr)

₹7,540

NAV

32.17

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.17 7.09 7.03 %

AUM (Cr)

₹93

NAV

38.64

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 5.5 7.41 7.02 %

AUM (Cr)

₹892

NAV

98.49

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 20.06 16.07 15.5 %

AUM (Cr)

₹363

NAV

48.08

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.53 11.14 10.78 %

AUM (Cr)

₹5,648

NAV

40

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.63 10.06 10.28 %

AUM (Cr)

₹492

NAV

103.76

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.45 10.12 10.27 %

AUM (Cr)

₹66

NAV

60.34

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 10.95 9.78 10.26 %

AUM (Cr)

₹22,609

NAV

72.91

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 11.21 9.94 10.1 %

AUM (Cr)

₹286

NAV

31.51

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.42 9.48 9.98 %

AUM (Cr)

₹7,725

NAV

110.33

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.02 10.12 9.97 %

AUM (Cr)

₹839

NAV

39.21

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 12.44 10.09 9.93 %

AUM (Cr)

₹1,978

NAV

43.61

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 13.09 9.78 9.8 %

AUM (Cr)

₹1,321

NAV

81.46

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 18.97 13.18 14.01 %

AUM (Cr)

₹7,241

NAV

155.14

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 17.64 13.26 13.96 %

AUM (Cr)

₹2,935

NAV

69.1

Estimated Value

After 5 years After 7 years After 10 years
Returns (p.a.)

+ 16.82 12.75 13.39 %

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What are ELSS Funds?

ELSS, or Equity Linked Saving Scheme, are a type of funds in India that offer tax benefits along with the potential for high returns. They are essentially investment products that pool money from multiple investors and invest it in various stocks and equity-related instruments.

Features and Benefits:

  • Tax benefits: Investments in ELSS funds qualify for tax deductions under Section 80C of the Income Tax Act, 1961. This allows you to reduce your taxable income and potentially save a significant amount of tax.

  • Equity investment: ELSS funds primarily invest in equities, which offer the potential for higher returns compared to other tax-saving instruments like fixed deposits or Public Provident Fund (PPF).

  • Lock-in period: ELSS funds come with a lock-in period of 3 years.

  • Potential for high returns: ELSS funds have the potential to generate higher returns compared to other tax-saving instruments over the long term.

  • Disciplined investing: The lock-in period of 3 years encourages disciplined investing and helps you stay invested for the long term, which is crucial for maximizing returns in equity markets.

  • Insurance Companies
  • Mutual Funds
Returns
Fund Name 5 Years 7 Years 10 Years
High Growth Fund Axis Max Life
Rating
28.6% 21.1%
17.8%
View Plan
India Consumption Fund Tata AIA Life
Rating
27.04% 21.38%
20.21%
View Plan
Accelerator Mid-Cap Fund II Bajaj Allianz
Rating
20.99% 12.88%
14.99%
View Plan
Opportunities Fund HDFC Life
Rating
22.26% 14.98%
14.74%
View Plan
Opportunities Fund ICICI Prudential Life
Rating
20.26% 13.48%
12.96%
View Plan
Multiplier Birla Sun Life
Rating
22.86% 14.91%
15.79%
View Plan
Virtue II PNB MetLife
Rating
21.11% 16.44%
15.26%
View Plan
Equity II Fund Canara HSBC Life
Rating
16.91% 10.52%
10.92%
View Plan
Balanced Fund LIC India
Rating
10.95% -
-
View Plan
Equity Fund SBI Life
Rating
17.07% 12.13%
12.1%
View Plan
Fund rating powered by
Last updated: Aug 2025
Compare more funds

  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: August 2025

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Buying the Dip Results in Higher ReturnsBuying the Dip Results in Higher Returns

What are SIPs?

SIP stands for Systematic Investment Plan. It's a popular method for investing in various financial instruments like ULIPs, mutual funds, stocks, and retirement accounts. Here's how it works:

  • Regular investments: Instead of investing a lump sum, you contribute a fixed amount at specific intervals, usually weekly, monthly, or quarterly.

  • Disciplined approach: SIPs encourage regular saving, building financial discipline and consistency.

  • Flexibility: You can start with a small amount and adjust the investment amount as your financial situation changes.

  • Potential benefits: SIPs offer the potential benefits of:

    • Rupee-cost averaging: By investing at different market points, you average out the cost per unit, potentially reducing the impact of market volatility.

    • Compounding: As your investments grow, you earn returns on the returns, leading to accelerated growth over time.

SIP Calculator

I want to invest Pro Tip
Financial experts suggest that a person should invest 10-15% of their monthly income for long-term financial growth
/Month
I want to invest for Pro Tip
Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively
Years
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Expected return Pro Tip
Top 25% of investors consistently generate more than 12% return
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Total Wealth ₹22.4 L
View Plans
I want to save
I want to invest for Pro Tip
Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively
Years
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Expected return Pro Tip
Top 25% of investors consistently generate more than 12% return
% Annually
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Monthly Investment ₹22.4 L
View Plans
Top Funds with High Returns (Past 7 Years)
High Growth Fund
17.8%
High Growth Fund
India Consumption Fund
20.21%
India Consumption Fund
Accelerator Mid-Cap Fund II
14.99%
Accelerator Mid-Cap Fund II
Global Equity Index Funds Strategy
15.24%
Global Equity Index Funds Strategy
Opportunities Fund
12.96%
Opportunities Fund
Multiplier
15.79%
Multiplier
Virtue II
15.26%
Virtue II
Equity II Fund
10.92%
Equity II Fund
Accelerator Fund
13.97%
Accelerator Fund
Pension Dynamic Equity Fund
11.52%
Pension Dynamic Equity Fund
Frontline Equity Fund
14.43%
Frontline Equity Fund
Equity Pension
12.6%
Equity Pension
Equity Top 250 Fund
11.77%
Equity Top 250 Fund
Growth Opportunities Plus Fund
14.93%
Growth Opportunities Plus Fund
Future Apex Fund
13.69%
Future Apex Fund
US Equity Fund
13.87%
US Equity Fund

What are the Benefits of ELSS?

  • Tax Benefits: ELSS qualifies for tax deductions under Section 80C of the Income Tax Act, allowing deductions of up to ₹1.5 lakh, thus reducing tax liability significantly.

  • Short Lock-in Period: With just a three-year lock-in period, ELSS offers quicker access to funds compared to alternatives like PPF or fixed deposits.

  • Lower Long-Term Capital Gains Tax: ELSS investments enjoy lower tax rates, with gains up to ₹1 lakh exempt from tax and any exceeding amount taxed at 10%.

  • Potential for High Returns: Investing in the stock market, ELSS offers the potential for higher returns, beneficial for long-term wealth creation.

  • Compounding Advantage: Regular investments in ELSS leverage compounding, accelerating growth over time.

start-an-sip-today-watch-your-money-grow start-an-sip-today-watch-your-money-grow

What are the Benefits of SIPs?

  • Discipline and Consistency: SIPs foster financial discipline and consistency by encouraging regular saving.

  • Rupee-Cost Averaging: By investing fixed amounts at regular intervals, SIPs help average out unit costs, reducing the impact of market volatility.

  • Affordable Investment: SIPs allow starting with small amounts and increasing investment gradually with income growth.

  • Compounding Power: Regular contributions to SIPs benefit from compounding, accelerating long-term growth.

  • Convenience: Automating the investment process, SIPs eliminate the need for timing the market or manual investments, allowing focus on other financial planning aspects.

ELSS vs SIP

While often compared, ELSS and SIPs are not directly comparable. Instead, they work together to offer a comprehensive investment strategy:

ELSS is a type of fund that invests primarily in stocks. SIP is a method of investing that allows you to invest a fixed amount at regular intervals.

The key takeaway:

  • You can invest in ELSS through SIPs, allowing you to:

    • Start with a small initial investment and gradually increase over time.

    • Benefit from tax deductions offered by ELSS.

    • Leverage the compounding power of regular investments.

This combination of tax savings, discipline, and growth potential makes ELSS with SIP a powerful tool for long-term wealth creation.

start-small-&-build-your-wealth-for-a-brighter-tomorrow start-small-&-build-your-wealth-for-a-brighter-tomorrow

How to Calculate Returns on Your ELSS SIP?

You can easily estimate your potential returns using a SIP calculator. An SIP calculator is an online tool that helps you estimate the potential returns on your investments made through SIPs. By inputting the relevant details into the SIP calculator, investors can get a clear picture of the projected returns over time, helping them make informed investment decisions and plan their financial goals effectively.

Conclusion

Combining ELSS with SIP offers investors a potent strategy for tax-efficient wealth growth and disciplined investing. ELSS provides tax benefits and equity exposure, while SIP ensures consistency and mitigates market risks. Together, they allow for gradual investment increase, small initial investments, and long-term wealth accumulation, highlighting the value of diversified investment approaches for achieving financial goals.

SIP Hub

˜Top plans are based on annualized premium, for bookings made through https://www.policybazaar.com in FY 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
Disclaimer:#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. All SIPs listed here are of insurance companies’ funds. The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^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.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).

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