Equity-linked saving schemes or ELSS serve as a lucrative form of mutual fund that allows investors to invest in equity and related instruments. Being almost similar to a normal equity Mutual Fund, ELSS offers equity exposure, delivers taxation benefits under section 80C, and helps investors earn substantial returns from their investments. Various Asset management companies have their own dedicated ELSS Mutual Funds that investors can select based on their preferences. Following is a list of the top 5 ELSS mutual funds which are known for their considerable Assets Under Management, low expense ratio, and High CAGR:
- Motilal Oswal ELSS Tax Saver Fund – Growth:
Ranked as one of the top ELSS Mutual Funds in India, the Motilal Oswal ELSS tax saver fund is known for its high returns and diversification across multi-cap equities. With an AUM of ₹55.9, the ELSS fund is categorized under the growth plan where dividends received are reinvested for better growth and returns for the investors. Trent Ltd., Zomato, Kalyan Jewellers, and various companies with a strong growth trajectory are included within the fund. Analysing the fund’s performance, the absolute returns for the past year are around 47.73%. Also, with a CAGR of 26%, the tax saver fund is a perfect investment option for investors looking for good equity exposure and aiming toward a long-term investment.
- SBI Long-Term Equity Fund:
Another reliable ELSS fund that investors can select is the SBI long-term equity fund. With more than ₹28,000 crores under management, the fund has offered great returns to its investors since its inception. The 3-year CAGR is around 25% which when compared to other funds in the same category is considerably high. Moreover, with diversification across large, mid, and small cap equity, the fund offers balance and therefore serves as a perfect investment option for investors looking for safety and high growth.
- Sundaram Long Term Tax Advantage Fund – Series 3
Known for its low volatility, and better-adjusted returns, the Sundaram long-term tax advantage fund is another equity-linked saving scheme mutual fund that investors can select for their investment portfolio. With an AUM of ₹39.21 crores and NAV of ₹27.9, the fund has delivered returns of more than 68.6% in the last 2 years and 79.03% over the past 3 years. Also, out of the total investment outlay, more than 50% is invested in small-cap stocks offering immense growth opportunities to the investors.
- Sundaram Long Term Tax Advantage Fund – Series 4
The Sundaram Long Term Tax Advantage Fund – Series 4 growth ELSS fund also serves as a perfect investment option for investors looking for stability, better returns, and overall growth. Managed by the best researchers under the Sundaram Asset Management Company, the fund has more than 96% of its investment outlay invested in equity with 57% in small-cap stocks. Moreover, the fund has generated absolute returns of 69.52% overall in the last 2 years.
- SBI Long Term Advantage Fund – Series 3:
With a current NAV of ₹45.24, the SBI long-term advantage fund is a growth fund that investors can select under the ELSS investment scheme. The fund has a total of ₹78.66 crores under management delivering 27.9%, 20.36%, and 26.14% returns in the past 1, 3, and 5 years. Helping investors to grow their investments over the long term, the ELSS fund offers capital appreciation and taxation benefits.
Konklusion
With a hassle-free process of demat account opening, investors can start their investment journey. Investors can select the best ELSS fund, opt for a lump sum or SIP investment, and get the benefits of capital appreciation and taxation.