Who wouldn’t want to save on taxes to develop wealth over time? People employ various strategies to accomplish their long-term financial objectives. ELSS mutual funds are one of the finest tax-saving strategies. ELSS funds are equity funds that enable investors to save on taxes. Investing in these funds can help investors qualify for Section 80C tax deductions.
ELSS funds are diversified equity funds that invest in securities of publicly traded companies in proportions determined by the fund’s investment objective. The equities are selected based on their market capitalization and industry sector.
The finest investors for ELSS funds are salaried individuals and first-time investors.
Over a three-year period, investments in Quant Tax Plan initiatives have returned 46.61 percent to investors. While this is the return for those who chose the direct plan, investors in the conventional plan saw returns of 43.92 percent. The investment strategy follows the Nifty 500 Total Return Index.
In the past three years, the direct plan of the Parag Parikh Tax Saver Fund generated returns of 33.81 percent and the regular plan generated returns of up to 32.11 percent for investors. In addition, this fund follows the Nifty 500 Total Return Index.
Some of the top ELSS funds with returns between 28 and 46% over the past three years include
The PGIM India ELSS Tax Saver Fund is included among the ELSS funds that offer substantial returns. In three years, the direct plan of this scheme has yielded returns of 30.01 percent while the regular plan has yielded profits of 28.34 percent.
In three years, those who have invested in the Bank of India Tax Advantage Fund have also amassed a fortune. During this period, the direct plan has returned 29.01% while the regular plan has returned 27.60%.
In three years, the direct plan of the Mahindra Manulife ELSS Fund has returned 29.49%. The regular plan of this scheme has provided investors with a staggering 27.32 percent return in three years. The investment strategy follows the Nifty 500 Total Return Index.
