Equity Linked Savings Schemes (ELSS) are popular among taxpayers because they help save tax under Section 80C of the old tax regime and also give investors a chance to build long-term wealth through equities. Among the many ELSS options available, three funds stand out for their strong 10-year performance — Quant ELSS Tax Saver Fund – Direct Plan – Growth, Mirae Asset ELSS Tax Saver Fund – Direct Plan – Growth, and Motilal Oswal ELSS Tax Saver Fund – Direct Plan – Growth.
These three direct plans have been selected purely based on their 10-year returns, and what makes them even more interesting is that they have comfortably beaten both their benchmark (BSE 500 TRI) and the ELSS category average across multiple time frames — 1 year, 3 years, 5 years and 10 years. (Data source: AMFI, Value Research)
10-year returns of top 3 ELSS schemes (Direct plans)
Quant ELSS Tax Saver Fund: 20.71% CAGR
Mirae Asset ELSS Tax Saver Fund: 19.13% CAGR
Motilal Oswal ELSS Tax Saver Fund: 17.68% CAGR
Quant ELSS Tax Saver Fund: High-return, high-volatility performer
The Quant ELSS Tax Saver Fund from Quant Mutual Fund has emerged as the top performer on a 10-year basis among the three, delivering over 20% annualised returns.
Top 3 tax-saver funds’ performance snapshot
Quant ELSS Tax Saver Fund
| Time period | Quant ELSS Tax Saver (Direct) | NIFTY 500 TRI | ELSS Category Average |
| 1 year | 7.36% | 7.36% | 4.73% |
| 3 years | 15.28% | 15.73% | 17.22% |
| 5 years | 22.13% | 15.58% | 16.55% |
| 10 years | 20.71% | 15.03% | 15.30% |
What stands out
Short term (1 year): Delivered returns broadly in line with the market and well ahead of the ELSS category average.
Medium term (3 years): Slightly below the benchmark and category average, reflecting recent volatility.
Long term (5 & 10 years): This is where the fund truly shines, significantly outperforming both the BSE 500 TRI and the ELSS category.
Basic details
Fund house: Quant Mutual Fund
Launch date: January 1, 2013
Return since launch: 19.88% per year
AUM: ₹12,403 crore (as of December 31, 2025)
Expense ratio: 0.68%
Risk profile
This is a very high-risk fund with sharp ups and downs. While long-term returns have been strong, the fund is more volatile than the market, and investors need patience to handle short-term swings.
Big picture: Quant ELSS suits investors who are comfortable with volatility and are focused on long-term wealth creation along with tax saving.
Mirae Asset ELSS Tax Saver Fund
| Time period | Mirae Asset ELSS Tax Saver (Direct) | NIFTY 500 TRI | ELSS Category Average |
| 1 year | 10.52% | 7.36% | 4.73% |
| 3 years | 17.95% | 15.73% | 17.22% |
| 5 years | 17.17% | 15.58% | 16.55% |
| 10 years | 19.13% | 15.03% | 15.30% |
What stands out
Short term (1 year): Clearly outperformed both the benchmark and the ELSS category, even in a volatile phase.
Medium term (3 years): Returns are ahead of the BSE 500 TRI and marginally higher than the category average.
Long term (5 & 10 years): Delivered strong and consistent outperformance over longer periods.
Basic details
Fund house: Mirae Asset Mutual Fund
Launch date: December 28, 2015
Return since launch: 18.92% per year
AUM: ₹27,196 crore (as of December 31, 2025)
Expense ratio: 0.57%
Risk profile
Although classified as very high risk, this fund has shown lower volatility than peers. It has delivered better risk-adjusted returns and has consistently beaten its benchmark over time.
Big picture: Mirae Asset ELSS is ideal for investors who want a balanced mix of growth and stability within the ELSS category.
Motilal Oswal ELSS Tax Saver Fund
| Time period | Motilal Oswal ELSS Tax Saver (Direct) | NIFTY 500 TRI | ELSS Category Average |
| 1 year | -6.24% | 7.36% | 4.73% |
| 3 years | 23.38% | 15.73% | 17.22% |
| 5 years | 19.86% | 15.58% | 16.55% |
| 10 years | 17.68% | 15.03% | 15.30% |
What stands out
Short term (1 year): Significant underperformance, reflecting sharp volatility in recent markets.
Medium term (3 years): A strong comeback, with returns well ahead of both the benchmark and category average.
Long term (5 & 10 years): Delivered solid outperformance, comfortably beating the benchmark and ELSS peers.
Basic details
Fund house: Motilal Oswal Mutual Fund
Launch date: January 21, 2015
Return since launch: 17.17% per year
AUM: ₹4,341 crore (as of December 31, 2025)
Expense ratio: 0.64%
Risk profile
This is a high-risk, high-reward fund. It is more volatile than the market, but has also generated strong alpha, meaning it has beaten its benchmark convincingly over time.
Big picture: Motilal Oswal ELSS suits investors who can tolerate short-term pain in pursuit of long-term gains.
Why ELSS funds make sense for taxpayers
Tax benefit: Investments qualify for deduction of up to ₹1.5 lakh under Section 80C.
Shortest lock-in: ELSS has a 3-year lock-in, the lowest among all tax-saving options under 80C.
Wealth creation: Being equity-oriented, ELSS offers better long-term return potential compared to traditional tax-saving instruments.
Who should consider these funds?
-Investors with a long-term horizon (5–10 years or more)
-Taxpayers looking to combine tax saving with wealth creation
-Investors who can handle market volatility and stay invested through ups and downs
A word of caution
While the past performance of these ELSS funds has been impressive, returns are not guaranteed. Equity markets go through cycles, and short-term returns can be unpredictable, especially in high-risk funds. Investors should choose funds based on risk appetite, investment horizon and financial goals, and not solely on past returns.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.