What is ELSS Scheme? And Best ELSS Mutual Funds to invest in?

What is ELSS Scheme? And Best ELSS Mutual Funds to invest in?

Equity Linked Saving Scheme or ELSS is a type that invests in Equity Market. Also known as Tax-Saving Mutual Funds, ELSS is designed to offer tax benefits. Unlike traditional Mutual Funds held for several years or even decades, ELSS Mutual Fundsare held for a minimum of three years. Theyqualify for tax savings under section 80C of the Income Tax Act. 

These funds reduce your taxable income, lowering the amount you owe in taxes. Additionally, they come with certain tax-free or tax-deferred benefits. The best ELSS Funds are an excellent choice for investors looking to save money on their taxes while still diversifying their investments.

If you want to improve your financial situation and reduce your tax burden, ELSSFundsare the solution. Here are some of the best ELSS Mutual Fundsto consider investing in: 

  • Motilal Oswal Long Term Equity Fund

They have been in operation for more than 10 years and generated returns of over 15% during this period. The fund has a low expense ratio of 0.62 and a lock-in period of three years, which is lower than the average ELSS. 

Motilal Oswal Long-Term Equity invests in a diversified basket of Large- and Mid-Cap Stocks andhas a strong focus on companies with good governance standards. If youwant an ELSS Fund with a good track record and low expenses,this is worth a check.

  • Aditya Birla Sun Life Tax Relief 96 Fund

At Aditya Birla Sun Life, the ELSS Funds are carefully managed by the best investment experts. With over two decades of experience, the team has in-depth knowledge of the markets and extensive research capabilities that letsclients achieve long-term success.Consider investing in your tax returns if you want to make more out of your tax returns and minimise your financial risks. 

  • HDFC Taxsaver Fund

This is an excellent optionas it has always delivered consistent returns since its inception and has a good track record of outperforming its benchmark index. The fund is also well diversified across sectors, which reduces the overall risk. If you seek a tax-efficient way to invest in Mutual Funds, HDFC Tax-Saver Fund is a great option.

Now that you know some of the best ELSS Funds to invest in, why wait? 

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