10 Best Tax-Saving ELSS Mutual Fund In 2022

Are you interested in multiplying your income while saving tax? If yes, the Equity Linked Savings Scheme, ELSS, is your perfect plan. Of course, one can opt for various mutual funds savings plans to get a good return. But, the ELSS program is your best bet. So why invest in ELSS? Simple answer? Tax saving. Before investing, let us look into the top ELSS funds you must know about.

Why invest in ELSS funds?

Like any other mutual fund plan, the ELSS funds are also subject to market risk. Thus, it is also possible to incur losses while investing. So then, why go for investing in ELSS funds?

Compared to other schemes, the ELSS can offer you higher returns on your investment. This is because these schemes invest in stocks, which yield a higher output in the long term. Also, unlike most investment plans, the ELSS has the least period for locking in. For example, the lock-in period for a public provident fund is fifteen years.

The minimum lock-in period of ELSS is three years. Returns are much better in the longer run. When it comes to investors, most generally add a principal amount for three years. Then, after five or seven years, they add more money when they start seeing returns. This can also be a good option for you.

10 Best Tax-Saving ELSS Mutual Funds

Here are the top ELSS funds that you must know about.

DSP tax saver fund

The DSP tax-saving ELSS funds will help you save money on taxes. The fund manager is free to invest in any possibility the market may present. This is because the fund does not need any particular investing strategy. As a result, the fund has a better churn ratio than most of its competitors. You must invest in these ELSS mutual funds.

Quant tax plan direct growth

This is the first recommendation if you want to invest in a top ELSS fund. The scheme helps to gain funds by investing in equity shares. Not only this, but the quant tax plan’s direct growth also gives out dividends to its investors. What’s more? The exit load for this mutual fund is 0%. The only disadvantage is the three-year lock-in period.

Bank of India tax advantage direct growth

The Bank of India launched this ELSS mutual funds scheme. This scheme creates a diversified portfolio. It consists of various company shares with well-functioning business models. This stock has good returns on the three-year and five-year plans. Yet, the return for the first year is lower than the average percentage by fifty-two point nine. This will be ideal if you are looking for the best tax-saving plan.

ICICI Prudential Long-Term Equity Fund

This portfolio comprises a mix of direct, midsize, and small-cap equities. The elements that the fund manager considers when investing in equities are – 

• fundamentals of the firm 
• the industry structure 
• the calibre of management 
• the company’s sensitivity to economic conditions
• the company’s financial stability
• Primary drivers of earnings are all

Invesco India Tax Plan

The Invesco India Tax Plan has proved itself in the past years in the ELSS funds. This fund invests in large-cap stocks. Over 65% of its stores are large-cap in nature.

Mirae asset tax saver fund direct growth

The Mirae asset tax saver fund direct growth is excellent. The main motto of this scheme is to generate long-term revenue for its investors. It operates with the help of a diversified portfolio of equity and related plans. As a result, it has a much lower expense ratio, at 56%.

IDFC tax advantage plan

The IDFC mutual funds launched this ELSS plan. Their ideology was to diversify their investments in companies that have reasonable valuations. The fund also has an investment strategy that favours growth at fair prices. The fund manager adopts an aggressive investment strategy. It is suitable for high-risk investors. About 48% of the portfolio invests in small/mid-cap firms. 

Canara Robeco equity tax saver direct growth plan

This plan wishes to achieve success through long-term valuation. It invests in equities. It sponsors primary, secondary, and overseas markets. The higher alpha value of this plan is 5.28.

Kotak tax saver fund

The fund invests according to the growth at a fair price philosophy. Harsha Upadhyaya is the fund manager. He is positioning the fund to profit from India’s economic recovery. He concentrates investment efforts on businesses that are strong candidates for rerating. But, the fund is still biased toward large caps. About 58% of the portfolio is invested in large-cap equities.

Nippon India tax saver scheme

The scheme uses an internal quant-based structure. It aims to support its growth at a fair price strategy. The portfolio seeks to exhibit a large cap bias. This happens while maintaining quality. Along with tactical exposures to mid-caps depend on a more significant price-value differential. As a result, it has a long-term tendency. Still, portfolio turnover may be more prominent when modifications occur. This is because they are made under the direction of the Quant Model.

Conclusion

An equity-linked savings scheme helps you multiply your hard-earned money. At the same time, it allows you to pocket a more significant amount by allowing you to save money on taxes. These schemes have an outstanding possibility to provide you with greater returns. So why are you still waiting? If you need help with finances, you can always reach out to experts such as Piramal Finance to help you find the best solutions to understand savings schemes, personal loans, or tax saving schemes better. Get expert help to save more money today!

Also Read: Benefits of Buying Government Bonds