Top-performing ELSS Tax Saving Mutual Funds since inception (May 2023): Equity-linked Savings Schemes (ELSS) or tax saving funds provide investors with the benefit of tax deduction as well as a chance to get high returns from equity investing. Up to Rs 1.5 lakh invested in an ELSS fund qualifies for deduction under Section 80C of the Income Tax Act.
Data on the website of the Association of Mutual Funds in India (AMFI) at the time of writing shows that as many as eight tax-saving funds have given returns between 18% to 23% since their respective launch dates. Interestingly, there is a big difference between the direct and regular plan returns of some of these schemes. Also, some of these funds are relatively younger than others.
Had there been a race for tax-saving funds, several schemes could have been eligible to participate to claim the championship, depending on their age and ability to multiply investors’ wealth. However, there is no such race. But there can be a list of 8 such top-performing ELSS schemes since their respective launch dates till May 26, 2023, as per AMFI website data, as below. Investors should, however, note that there is no assurance that these funds would continue to give similar returns in future.
HDFC Taxsaver Fund
The regular plan of HDFC Taxsaver Fund has given a return of 23% while the direct plan of the scheme has given a return of 13.26% since its inception. The scheme tracks NIFTY 500 Total Return Index.
Also Read: Top-performing mutual funds: 8 small cap schemes with 24% to 30% returns since inception (May 2023)
Parag Parikh Tax Saver Fund
The direct plan of Parag Parikh Tax Saver Fund has given a return of 22.98% while the regular plan of the scheme has given a return of 21.44% since inception. The scheme tracks NIFTY 500 Total Return Index.
Aditya Birla Sun Life Tax Relief 96 Fund
The regular plan of Aditya Birla Sun Life Tax Relief 96 Fund has given a return of 21.44% while the direct plan of the scheme has given a return of 13.44% since inception. The scheme tracks NIFTY 500 Total Return Index.
Franklin India Taxshield Fund
The regular plan of Franklin India Taxshield Fund has given a return of 20.63% while the direct plan of the scheme has given a return of 14.67% since inception. The scheme tracks NIFTY 500 Total Return Index.
Also Read: Best Large Cap Funds in 10 years: 11 schemes with 14% to 16.6% annual SIP returns (May 2023)
Quant Tax Plan
The direct plan of Quant Tax Plan has given a return of 20.07% while the regular plan of the scheme has given a return of 14.69% since inception. The scheme tracks NIFTY 500 Total Return Index.
Mirae Asset Tax Saver Fund
The direct plan of Mirae Asset Tax Saver Fund has given a return of 18.75% while the regular plan of the scheme has given a return of 17.12% since inception. The scheme tracks NIFTY 500 Total Return Index.
ICICI Prudential Long Term Equity Fund (Tax Saving)
The regular plan of ICICI Prudential Long Term Equity Fund (Tax Saving) has given a return of 18.95% while the direct plan of the scheme has given a return of 14.92% since inception. The scheme tracks NIFTY 500 Total Return Index.
Tata India Tax Savings Fund
The regular plan of Tata India Tax Savings Fund has given a return of 18.13% while the direct plan of the scheme has given a return of 16.22% since inception. The scheme tracks NIFTY 500 Total Return Index.
Disclaimer: The above content is for information purposes only based on AMFI website data as of May 26, 2023. Mutual Funds are subject to market risks. There is no assurance or guarantee that the above funds will give the same returns in future. Investors are advised to consult their financial advisors before investing.