Features of ELSS Funds
  • Best tax saving instrument u/s 80C
  • Help in building wealth 
  • Least lock-in period of 3 years 
  • Initiated with a small amount
Invest Now
Top funds 3Y Return 5Y Return
Axis Long Term Equity Fund (G) 13.81% 15.3% Invest
DSP Tax Saver Fund (G) 13.53% 13.51% Invest
Invesco India Tax Plan (G) 13.08% 13.7% Invest
Aditya Birla Sun Life Tax Relief 96 (G) 12.2% 14.55% Invest
L&T Tax Advantage Fund (G) 12.25% 11.89% Invest
View All Funds
Nov 29, 2018 10 min read

How to Pick the Best ELSS Fund?

Read this blog to know the best tips that can help you pick an ideal ELSS scheme for yourself.

ELSS Fund and its Importance

Being one from the equity category, ELSS funds are the set of mutual funds that help in saving taxes which come with a mandatory lock-in of 3 years. The right route to invest in this investment avenue is either via SIP or lumpsum. The monthly investment can be started with a small amount of Rs 500.

Being from the equity category, such funds are for people who are willing to invest in for a long-term horizon and a have high risk appetite with a hope to attain good returns.


Invest in the Best Mutual Funds
  • 100% Paperless
  • No Transaction Charges
  • Easy to Invest
  • Safe & Secure

Points to Check While Picking an ELSS Scheme

  • Don’t Blindly Go for the Chart Toppers
    No matter which category of mutual fund it is, investors often end up choosing schemes which are offering the highest of returns or the ones seen as the chart toppers. This action is taken despite the bold disclaimers which state that the past performance is not indicative of future returns because investors find it hard to control the lure.
  • Returns Should Not Be the Sole Reason to Pick
    It is easy to get swayed with the high value of returns that a fund has delivered, however, the performance should be checked in conjunction with the fund manager’s investment style and pattern.
    Consider a time of the market where the mid cap stocks are rallying. In such a situation, a fund with the highest or most of the allocation in mid cap stocks is bound to perform well. Such time doesn’t indicate good investment style. However, if there is situation where all the mid cap funds are showing a downturn, like in the year 2018, and there exits a fund which was capable of maintaining the risk by capping losses, then it can be considered as a good mid cap fund.
  • Look for Fund’s Concentration
    ELSS funds are basically diversified equity mutual funds. This means that when you choose to invest in an ELSS scheme, then you are actually investing across the sectors, themes, and even market caps. While there are equity mutual funds which have clearly defined their investment in large caps, mid caps, multi caps, and small caps, ELSS funds could be little biased towards the mid caps with moderate investment in large-caps as well.
    While ELSS fund selection, it’s important you match your risk profile with that of the fund that you planning to invest in. If you are aggressive investor, then pick an ELSS scheme which leans towards mid caps. However, if you are a conservative investor, then opt for a fund whose portfolio is oriented towards the large cap stocks.
  • Invest in the Growth Option of ELSS
    Investment in a dividend option might seem to be tempting when you invest in ELSS as there’s no lock-in for it. This way, investors get regular dividends before completion of three years lock-in period.
    But if you would like to go with the advise of a financial expert, then he/she will definitely suggest you to pick a growth option. This is because here your profits are reinvested and you can reap the benefit of tax saving along with good wealth creation.
    Earlier people invested in the dividend option of ELSS as the dividends were tax-free. But now, after the announcement of Union Budget 2018, there’s a dividend distribution tax on all equity schemes. So, it is better to choose the growth option. Besides, never invest in an ELSS fund for the sole purpose of tax saving.

Top ELSS (Tax Saving) Funds with the Most Consistent Performance

Whenever looking for the best ELSS mutual fund, check the information ratio of the top ones from the chart. The second important characteristic that should be analysed is the consistency of returns. At times, risk-adjusted returns could be swayed by funds

performance in a short term, therefore it is important to check how many times the fund outperformed its benchmark as well as the category.

Considering this, there are five funds which are filtered out by the experts at MySIPonline which were successful in offering the best of returns on a consistent basis. Read to the end to find out who they are.

Aditya Birla Sun Life Tax Relief 96’ Fund

ABSL Tax Relief 96’ Fund is one such scheme which has proved its will with a 3-star rating for years and now in the recent time, it climbed to a five-star rating. Being consistently overweight in the mid cap stocks, it follows the multi-cap and bottom up investment strategy. Let’s check more of its basic details.

Aditya Birla Sun Life Tax Relief 96 Fund
Category Equity : ELSS
Benchmark S&P BSE 200 TRI
Launch Date 29-Mar-96
Asset Size Rs. 6,480 crore(As on Oct 31, 2018)
Fund Manager Mr. Ajay Garg
Expense Ratio 1.92%(As on Oct 31, 2018)
Minimum Lumpsum Rs. 500
Minimum SIP Rs. 500
Return Since Inception 24.49%
Exit Load 0


Axis Long Term Equity Fund

Axis Long Term Equity Fund is one of the most appreciated ELSS mutual funds in India which follows the investment strategy focuses on buying quality growth stocks. While selecting the stocks for investment, the fund manager looks for scalable and quality businesses to seek a high return on capital and secular growth.

Being a late entrant, it has managed to skip the period of crash in 2008, thus it is yet to be tested in the severe market downfall. Let’s find out more about this gem from the table below before investing in it.

Axis Long Term Equity Fund
Category Equity : ELSS
Benchmark S&P BSE 200 TRI
Launch Date 29-Dec-09
Asset Size Rs. 16,467 crore(As on Oct 31, 2018)
Fund Manager Mr. Jinesh Gopani
Expense Ratio 2.08%(As on Oct 31, 2018)
Minimum Lumpsum Rs. 500
Minimum SIP Rs. 500
Return Since Inception 17.31%
Exit Load 0


L&T Tax Advantage Fund

This is again one of the chart toppers in the ELSS mutual funds category which is known to offer long-term capital growth from a diversified portfolio particularly equity and related instruments. L&T Tax Advantage Fund’s distinct style of investing makes it stand out among its peers, but this also adds a bit of risk making it an ideal option for moderately aggressive investor.

Here are its other details:

L&T Tax Advantage Fund
Category Equity : ELSS
Benchmark S&P BSE 200 TRI
Launch Date 27-Feb-06
Asset Size Rs. 3,176 crore(As on Oct 31, 2018)
Fund Manager Mr. Saumendra Nath Lahiri
Expense Ratio 2.15%(As on Oct 31, 2018)
Minimum Lumpsum Rs. 500
Minimum SIP Rs. 500
Return Since Inception 13.97%
Exit Load 0


Invesco India Tax Plan

A consistent performer of the Equity Linked Savings Schemes’ category which has managed to beat its benchmark seven out of nine times in total since its inception. The fund manager prefers investing in quality businesses which offer healthy growth. A good choice for all those investors who are looking for more of a conservative option in this category. Look at the table below to find out more details about Invesco India Tax Plan.

Invesco Tax India
Category Equity : ELSS
Benchmark S&P BSE 200 TRI
Launch Date 29-Dec-06
Asset Size Rs. 620 crore(As on Oct 31, 2018)
Fund Managers Mr. Amit Ganatra and Mr. Dhimant Kothari
Expense Ratio 2.61%(As on Oct 31, 2018)
Minimum Lumpsum Rs. 500
Minimum SIP Rs. 500
Return Since Inception 14.09%
Exit Load 0


DSP Tax Saver Fund

DSP Tax Saver Fund - Growth Plan is a tax saving scheme which seeks to generate medium to long-term capital appreciation from a diversified portfolio. It is not following a single investment style and follows a blended approach to select stocks. The fund manager believes in taking tactical calls to capitalize market opportunities and running trends. Listed below are the basic details of the scheme.

DSP Tax Saver Fund
Category Equity : ELSS
Benchmark S&P BSE 200 TRI
Launch Date Janurary 18, 2007
Asset Size Rs. 4,329 crore(As on Oct 31, 2018)
Fund Manager Mr.Rohit Singhania
Expense Ratio 2.08%(As on Oct 31, 2018)
Minimum Lumpsum Rs. 500
Minimum SIP Rs. 500
Return Since Inception 13.33%
Exit Load 0

Also Read: Best ELSS Funds to Invest in 2018-19

Invest in the Best Mutual Funds
  • 100% Paperless
  • No Transaction Charges
  • Easy to Invest
  • Safe & Secure

Last But Not Least

Based on all the aforementioned criterion, we have shared some of the best tips along with the schemes to help you choose the most ideal ELSS fund for yourself. In case you still feel trouble selecting the right one, don’t hesitate to connect with us. You can even shoot any of your query regarding regular plans of mutual funds through the link provided below. Happy Investing!

Must Read:

We will call you on the specified preferred time