Introduction:
When investing your money, you can choose from many instruments, such as stocks, mutual funds, fixed deposits, etc. Equity-Linked Savings Scheme (ELSS) is one such option that allows you to invest for your long-term financial goals. Additionally, investments made in ELSS are available for tax deductions under section 80C of the Income Tax Act of 1961.
ELSS mutual funds typically invest at least 65% of the corpus in equities and equity-linked securities, with some exposure to fixed-income securities. However, not all ELSS plans are the same. Therefore, before investing in an ELSS mutual fund, you must ensure it aligns with your risk appetite and investment objectives.
Best ELSS mutual funds to invest in 2024
To make your task more accessible, we have compiled a list of top-performing ELSS mutual funds in 2024 based on their one-year return, fund size, rating, and risk. Investing in these funds can generate good returns over time while helping you reduce your tax liabilities.
1. Quant ELSS Tax Saver Fund
Previously known as Quant Tax Plan Direct-Growth Fund, Quant ELSS Tax Saver Fund has generated the highest return among all ELSS funds in the last ten years. It has provided a whopping return of 71.99% per annum in the last year. As of 21 February 2024, the fund size stood at Rs. 7,238 crores, while the NAV stood at Rs. 385.51 per unit. Owing to the consistency of returns, this fund has a rating of 5 stars. It has no exit load.
2. SBI Long-Term Equity Fund
SBI Long-Term Equity Fund is another top-performing ELSS mutual fund that yielded 69.81% per annum in the last year. It was previously known as the SBI Magnum Taxgain Direct Growth Fund. As of 21 February 2024, the fund size and NAV stood at Rs. 20,085 crores and Rs. 392.05 crores. You can start investing in this 5-star rated fund with a minimum investment of Rs. 500 through a Systematic Investment Plan (SIP) or lump sum.
3. Bank of India ELSS Tax Saver Fund
Bank of India ELSS Tax Saver Fund is this list's third best-performing ELSS mutual fund. It was previously known as the Bank of India Tax Advantage Direct-Growth Fund. This fund has provided a return of 66.23% annually in the last year. As of 21 February 2024, the fund size and the NAV stood at Rs. 1,090 crores and Rs. 169.54, respectively. Although the fund entails very high risk, it has also received a rating of 5 stars.
4. Motilal Oswal ELSS Tax Saver Fund
Motilal Oswal ELSS Tax Saver Fund has attracted the attention of investors and experts alike, with a return of 62.03% in the last year. Previously known as Motilal Oswal Long-Term Equity Direct-Growth Fund, this fund has generated the highest return among all ELSS mutual funds in the last five years. As of 21 February 2024, the fund size and the NAV stood at Rs. 3,025.82 crores and Rs. 45.34 per unit. The fund has a VRO rating of 4 stars.
5. HDFC ELSS Tax Saver Fund
Previously called HDFC Taxsaver Direct-Growth Fund, HDFC ELSS Tax Saver Fund has consistently been among India's top-performing ELSS mutual funds. It has provided a return of 55.05% per annum in the last year. As of 21 February 2024, the fund size stood at Rs. 13,441 crores, while the NAV stood at Rs. 1,237.16 per unit. The fund has a 0% exit load and a VRO rating of 4 stars. You can start an SIP in this fund with a minimum of Rs. 500 per month or invest lump sums with at least Rs. 1,000.
To conclude
These are the top five best-performing ELSS mutual funds in India in 2024. You can invest in these funds to get the dual advantage of wealth creation and tax savings. However, conducting thorough research and choosing funds that align with your financial goals and risk tolerance is crucial. You can also consult a financial advisor to make informed investment decisions based on your unique financial circumstances. With Motilal Oswal, you can avail of a gamut of investment-related services and get started.
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