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Best ELSS Mutual Funds to Invest in India 2018

 August 15, 2018  /  Comments Off on Best ELSS Mutual Funds to Invest in India 2018

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Entering into the second half of the financial year, it is important for taxpayers to start planning which tax saving investment would deliver you with the greatest benefit. Tax-saving investment options include Tax Saver Fixed Deposits, Public Provident Fund, etc. With these investment options providing returns which are unable to beat current inflation, investors are looking out for alternatives. For such investors, tax saving mutual funds or ELSS is the best investment option available.

Equity Linked Savings Scheme is one of the best tax-saving instruments which are eligible for deduction under Section 80C of the Income Tax Act, 1961. ELSS comes with a lock-in period of only 3 years, which is the lowest among all the other tax saving investment choices available under Section 80C for deduction. The high rate of return makes them the best investment option available to meet a long-term financial goal. Following are the 5 best ELSS investment options available that you can go for this year.

Top ELSS Mutual Fund Investments in 2018

*Returns data as recorded on 8th August 2018 and subject to change. AUM data as recorded on 31st July 2018.

Axis Long Term Equity Fund

Axis Long Term Equity Fund is the best mutual fund online which has shown a growth rapidly. This fund was launched on December 29, 2009, and has the largest assets under management (AUM). This tax saver ELSS fund invests in companies which have a strong potential of generating wealth over 3-4 years. This mutual fund scheme has maintained a large-cap orientation, which has helped it to control losses during previous phases. Axis Long Term Equity Fund comes with 0% exit load and a minimum investment value of Rs. 500. This mutual fund investment is a large-cap oriented fund with approx. 70% of its investments in giant and large cap space.

*AUM data as recorded on 31st July 2018.

Franklin India Taxshield Fund

Franklin India is one of the most established ELSS schemes in India which is generating 24% (CAGR) return from its inception. This fund was launched on April 10, 1999, and has now been able to beat its benchmark for most of the years. Franklin India Taxshield Fund invests in stocks with attractive valuations and strong growth view, which has enabled this fund to perform better and deal with sudden market fluctuations. With 80% of its investments in giant and large-cap companies, this mutual fund in India is a good investment choice for investors looking for consistent long-term returns from their Equity Linked Saving Schemes.

*AUM data as recorded on 31st July 2018.

DSP BlackRock Tax Saver Fund

DSP BlackRock Tax Saver Fund is an open-ended equity linked saving scheme (ELSS) mutual fund. It is managed by DSP Blackrock which is the largest asset management companies in India. It is a large-cap oriented fund which comes with approx. 68% of the investments in large-cap companies. This fund has constantly been able to beat the benchmark. It has been able to provide a return of 14.43% return since its launch on January 18, 2007. DSP BlackRock Tax Saver Fund is a perfect mutual fund scheme that investor can add to their portfolio to earn higher returns from their investments and availing tax benefits as well.

*AUM data as recorded on 31st July 2018.

Reliance Tax Saver Fund

Reliance Tax Saver Mutual Fund is one of the largest mutual fund AMCs which are currently operating in India. Unlike most of the best ELSS funds, Reliance Tax Saver Fund focuses on mid cap and small cap companies. Currently, 55% of its portfolio is invested in small and mid-cap stocks. This is one of the primary reasons for this mutual fund scheme’s outperformance during the last couple of years. Reliance Tax Saver Fund has provided 14.43% returns since its launch date of September 21, 2005. It comes with a minimum investment amount of Rs. 500 and 0% exit load.

*AUM data as recorded on 31st July 2018.

ICICI Prudential Long Term Equity Fund

ICICI Prudential Long Term Equity Fund invests in companies with good valuation and growth potential. This allows it to outperform peer ELSS mutual funds during the initial bull market phases. This fund has been able to provide 20.94% return since its launch on August 19, 1999. The fund has been able to outperform its benchmark for most of the previous years.

*AUM data as recorded on 31st July 2018.

Conclusion

To conclude, you should carefully analyze your risk appetite before investing in mutual funds online. You can also use a mutual fund calculator as it will help you analyze the best mutual fund available in India. Although, the past performance of these tax saver mutual funds or ELSS cannot guarantee their future performance, at least give an idea of how they have reacted to the market fluctuations. Also, you should compare the performance of your chosen ELSS fund with its benchmark index and its peer ELSS mutual funds for the last 3 and 5 year period before finally investing in that mutual fund.

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