{"id":7571,"date":"2019-05-22T09:51:24","date_gmt":"2019-05-22T04:21:24","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=7571"},"modified":"2021-05-24T00:41:58","modified_gmt":"2021-05-23T19:11:58","slug":"best-elss-fund","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/best-elss-fund\/","title":{"rendered":"Best ELSS (Tax Saving Mutual Fund) to Invest in 2019"},"content":{"rendered":"

ELSS (Equity Linked Saving Scheme) or Tax Saving Mutual Funds are one of the best investment options for tax saving u\/s 80C<\/strong>. These ELSS funds invest mainly in equities making them one of the best investments for long term wealth creation.<\/p>\n

Why Invest in ELSS?<\/h2>\n

High Returns:<\/strong> Of all the tax saving investments ELSS has the potential to give highest returns.<\/p>\n

Partially<\/b>\u00a0Tax Free on Maturity:<\/strong> The gains made on redemption are long term capital gains (on equity) and so tax free up to Rs 1 Lakh (taxed @ 10%+cess for gains of more than Rs 1 lakh).<\/p>\n

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Also Read:<\/strong>\u00a0How are Mutual Funds Taxed?<\/a><\/p>\n<\/blockquote>\n

Lock-in Period:<\/strong> The ELSS funds have lock-in period of 3 years which means once invested you cannot redeem them before completion of 3 years. This is the shortest lock-in compared to all other tax saving investments.<\/p>\n

Buy\/Redeem Online:<\/strong> You can buy most of Tax saving mutual funds online directly from company website. Also the redemption can be done online and the amount is directly credited to your bank account. This gives lot of convenience.<\/p>\n

ELSS \u2013 The Cons:<\/h2>\n

Returns are Unpredictable:<\/strong> ELSS invests in equities and so the returns from these funds are linked to stock market performance. There are times when your money gets more than double in 3 years and also on the other side there can be significant loss. So it\u2019s a high risk investment. However if you choose the right ELSS funds you can expect 10% to 12% returns in long term of 7 to 10 years.<\/p>\n

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Also Read:\u00a0<\/strong>Best Tax Saving Investments u\/s 80C<\/a><\/p>\n<\/blockquote>\n

Best ELSS Funds to Invest:<\/h2>\n

Once you are convinced about investment in ELSS funds, the next question is which fund to choose? Believe me it\u2019s not easy thing to do. On the last count there were 36 open ended ELSS funds.<\/strong> To add to it there are several closed ended funds launched in January to March for last minute tax savers. Also most publications come out with their \u201cBest Tax Saving Mutual Funds<\/strong><\/span>\u201d list every year \u2013 which unfortunately keeps on changing.<\/p>\n

As the ELSS returns are linked to stock market no one can predict the returns for next 3 years. So it\u2019s all guessing game based on historical data. We too give you five ELSS funds based on their historical risk\/returns balance, consistency of returns, etc.<\/strong><\/p>\n

The funds are in alphabetical order. Choose any one or two:<\/strong><\/span><\/p>\n

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  1. Aditya Birla Sun Life Tax Relief 96<\/strong><\/li>\n
  2. Axis Long Term Equity Fund<\/strong><\/li>\n
  3. DSP BlackRock Tax Saver Fund<\/strong><\/li>\n
  4. Invesco India Tax Plan<\/strong><\/li>\n<\/ol>\n
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    Download Free ebook<\/strong>:\u00a0Tax Planning Guide for FY 2019-20<\/a><\/p>\n<\/blockquote>\n

    ELSS \u2013 Historical Performance<\/h2>\n

    The table below shows the 1, 3 , 5 and 10 year performance (as of May 20, 2019) of selected ELSS Funds. Historically they have given decent returns.<\/p>\n\n\n\n\n\n\n\n
    ELSS Funds<\/strong><\/td>\nLaunch Date<\/strong><\/td>\n1-Year Return<\/strong><\/td>\n3-Year Return<\/strong><\/td>\n5-Year Return<\/strong><\/td>\n10-Year Return<\/strong><\/td>\n<\/tr>\n
    Aditya Birla Sun Life Tax Relief 96<\/strong><\/td>\nMar-96<\/td>\n-1.32%<\/td>\n13.37%<\/td>\n16.26%<\/td>\n14.49%<\/td>\n<\/tr>\n
    Axis Long Term Equity Fund<\/strong><\/td>\nDec-09<\/td>\n5.24%<\/td>\n14.84%<\/td>\n16.73%<\/td>\nx<\/td>\n<\/tr>\n
    DSP BlackRock Tax Saver Fund<\/strong><\/td>\nJan-07<\/td>\n6.11%<\/td>\n14.93%<\/td>\n14.79%<\/td>\n16.08%<\/td>\n<\/tr>\n
    Invesco India Tax Plan<\/strong><\/td>\nDec-06<\/td>\n2.96%<\/td>\n14.06%<\/td>\n15.04%<\/td>\n16.87%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Best ELSS Funds (by Popular Publications):<\/h2>\n

    As mentioned earlier most financial publications come out with their set of recommended ELSS. We list them down<\/p>\n\n\n\n\n
    Mint<\/strong><\/a><\/td>\nEconomic Times<\/strong><\/td>\nValue Research<\/strong><\/a><\/td>\n<\/tr>\n
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    • ICICI Prudential Long Term Equity Fund<\/li>\n
    • Invesco India Tax Plan<\/li>\n
    • L&T Tax Advantage Fund<\/li>\n<\/ul>\n<\/td>\n
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    • Axis Long Term Equity Fund<\/li>\n
    • Birla Sunlife Tax Relief 96<\/li>\n
    • DSP Blackrock Tax Saver Fund<\/li>\n
    • Franklin India Tax Saver Fund<\/li>\n<\/ul>\n<\/td>\n
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