Best tax-saving mutual funds, also known as ELSS mutual funds, to invest in July 2024: When it comes to tax-saving investment options, the equity-linked savings scheme (ELSS) has gained immense popularity as it offers the dual benefits of equity investments and tax deductions under Section 80C. ELSS comes with a three-year lock-in period, offering high returns possibility and tax savings advantage. These features make ELSS a popular choice for long-term investors.

Take a look at the top 5 tax-saving mutual funds over the past year. Investors can also compare these funds’ returns over the last three year, five years and 10 years. Investors should note that past performance does not guarantee future results.

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Bank of India ELSS Tax Saver – Direct Plan – Growth

NAV: Rs 203.27

1-year returns: 61.62%

3-year returns: 24.69%

5-year returns: 30%

10-year returns: 20.19%

Quant ELSS Tax Saver Fund – Direct Plan – Growth

NAV: Rs 454.29

1-year returns: 60.92%

3-year returns: 28.33%

5-year returns: 36.18%

10-year returns: 25.81%

Motilal Oswal ELSS Tax Saver Fund – Direct Plan – Growth

NAV: Rs 55.86

1-year returns: 60.39%

3-year returns: 26.57%

5-year returns: 25.46%

Since inception in January 2015: 19.87%

ITI ELSS Tax Saver Fund – Direct Plan – Growth

NAV: Rs 27.38

1-year returns: 59.03%

3-year returns: 22.15%

Since inception in October 2019: 23.63%

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SBI Long Term Equity Fund – Direct Plan – Growth

NAV: Rs 465.74

1-year returns: 57.96%

3-year returns: 28.67%

5-year returns: 25.88%

10-year returns: 17.22%

Key features of equity linked savings scheme mutual funds:

Lock-in Period: ELSS funds come with a minimum lock-in period of 3 years.

Equity Exposure: At least 80% of the investment is allocated to equities.

Tax Savings: Investments in ELSS are eligible for tax deductions under Section 80C, up to Rs 1.5 lakh.

Market-Linked Returns: ELSS offers market-linked returns, with performance depending on the underlying equities in the portfolio.

Diversified Portfolio: ELSS funds typically invest in equities across various sectors, reducing concentration risks.

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