Top ELSS Mutual Funds For Tax Saving Before March 2019
With financial year about to end in just less than 3 months, an increased interest in tax planning is seen among people. But, this year a change of behavior is observed in investors, as a lot of people who were using conventional methods of tax savings such as FDs, RDs, NSC, etc., have started moving towards ELSS Funds. The two major reasons for this shift are higher returns and lower lock-in period. Now, a common query among the investors is, which scheme to choose so as a high growth in future can be ensured. Below are the 5 best funds of the ELSS category from which you can make a choice to enjoy a growth even better than your expectations.
Aditya Birla Sun Life Tax Relief 96’ Fund (G)
| Basic Details | |
|---|---|
| Description | ABSL Tax Relief 96 Fund |
| Category | Equity : ELSS |
| Benchmark | S&P NSE 200 TRI |
| Launch Date | Mar 29, 1996 |
| Asset Size | Rs. 6,984 crore (As on Nov 30, 2018) |
| 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%. But have 3 years lock-in |
Aditya Birla Sun Life Tax Relief 96’ Fund is one of the oldest and most consistent players of the ELSS category. As can be seen from the above table, since inception, the fund has provided average annualized returns of 24.49%, which is one of the best not only in the category but the overall MF industry. The scheme currently has investments in 50 stocks, diversified across 13 equity sectors, making it a perfect choice for investors who want a moderately diversified portfolio. Also, the scheme has 48.26% investment in mid caps and 11.12% in small caps, which enhance the growth factor associated with the scheme, but also the fluctuations it shows during the volatile market conditions. So, only invest if you have a moderately high risk appetite and an investment horizon of at least 5 years.
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Axis Long Term Equity Fund (G)
| Basic Details | |
|---|---|
| Description | Axis Long Term Equity Fund |
| Benchmark | S&P BSE 200 TRI |
| Launch Date | Dec 29, 2009 |
| Asset Size | Rs. 17,626 crore(As on Nov 30, 2018) |
| Expense Ratio | 2.08%(As on Oct 31, 2018) |
| Minimum Lumpsum | Rs. 500 |
| Minimum SIP | Rs. 500 |
| Return Since Inception | 17.36% |
| Exit Load | 0%. But have 3 years lock-in |
Axis Long Term Equity Fund has also been a consistent performer of the ELSS category but gained an extreme fame in the last 1 year by providing positive returns, even when all the other equity schemes were showing an extreme fall. The scheme follows a focused investment style and currently has investments in 35 stocks with major investment in finance and automobile sector. Also, it has more than 70% investment in the large cap space, making it an optimal choice for moderate risk investors, who want a stable growth and have an investment horizon of 7 years and more.
DSP Tax Saver Fund (G)
| Basic Details | |
|---|---|
| Description | DSP Tax Saver Fund |
| Benchmark | NIFTY 500 TRI |
| Launch Date | 18-Jan-07 |
| Asset Size | Rs. 4,329 crore (As on Nov 30, 2018) |
| Expense Ratio | 2.08%(As on Oct 31, 2018) |
| Minimum Lumpsum | Rs. 500 |
| Minimum SIP | Rs. 500 |
| Return Since Inception | 13.23% |
| Exit Load | 0%. But have 3 years lock-in |
DSP Tax Saver Fund has been an optimal long-term performer and has consistently maintained a ranking among the top 5 in terms of providing long-term growth. The scheme follows a blend of value & growth investing, and a diversified portfolio (currently has 68 stocks), which helps it in providing an optimal growth in long-term. As of now, it has a high allocation in the finance, technology, construction, healthcare, and energy sector which is really great as per the current market trends. One important thing is that at present the scheme has a Standard Deviation and Beta higher than benchmark as well as category, which means during the market volatility, the fluctuations it shows is really high, so only invest if you have a high risk appetite and a flexible investment tenure.
L&T Tax Advantage Fund (G)
| Basic Details | |
|---|---|
| Description | L&T Tax Advantage Fund |
| Benchmark | S&P BSE 200 TRI |
| Launch Date | Feb 27, 2006 |
| Asset Size | Rs. 3,221 crore(As on Nov 30, 2018) |
| Expense Ratio | 2.15%(As on Oct 31, 2018) |
| Minimum Lumpsum | Rs. 500 |
| Minimum SIP | Rs. 500 |
| Return Since Inception | 13.79% |
| Exit Load | 0%. But have 3 years lock-in |
L&T Tax Advantage Fund is a scheme which is being managed by one of the best fund managers of India, Mr. Soumendra Nath Lahiri. He is the brain behind the success of several other top schemes of this fund house, the top among which are L&T Emerging Businesses Fund and L&T Midcap Fund. Under his management, this fund has consistently beaten the benchmark as well as category returns in the long-term. It is following a diversified style of investing and currently has investments in 65 stocks. Also, it invests across market cap and at present has 54.79% investment in large caps, 33.61% in mid caps, and 11.60% in small cap companies. A good choice for investors with a moderately high risk appetite and an investment horizon of 7 years and more.
Invesco India Tax Plan (G)
| Basic Details | |
|---|---|
| Description | Invesco India Tax Plan |
| Benchmark | S&P BSE 200 TRI |
| Launch Date | Dec 29, 2006 |
| Asset Size | Rs. 668 crore (As on Nov 30, 2018) |
| Expense Ratio | 2.61% (As on Oct 31, 2018) |
| Minimum Lumpsum | Rs. 500 |
| Minimum SIP | Rs. 500 |
| Return Since Inception | 14.07% |
| Exit Load | 0%. But have 3 years lock-in |
Invesco India Tax Plan has recently been added to the list of ELSS recommendations, on the basis of consistency in returns it has been showing from a long time. In the past 10 years, the scheme has provided annual average returns of 20.65%, securing the 2nd rank in the category. This scheme follows a focused style of investing and currently has investments in 39 stocks, picked across from 12 equity sectors. The stock picking is large-cap oriented and a major inclination is towards growth stocks, so stability can be maintained in returns. A great choice for investors who have a moderate risk appetite and an investment horizon of 7-10 years.
- 100% Paperless
- No Transaction Charges
- Easy to Invest
- Safe & Secure
So, these were the schemes that you can invest right now to not only enjoy tax saving benefits if up to Rs. 46,350*, but to also experience high growth of your investments. From the above list, make a choice as per your risk profile and investment tenure. Now, if you haven’t done tax planning, then you can use this Online Tax Calculator to know what is the amount that you have to pay as taxes on your income and the investment amount through which you can save the maximum tax. With this, we end the discussion for today. In case you have any query regarding the above or any other mutual fund schemes, feel free to submit them in the form mentioned below.
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