Investing in mutual funds is less risky compared to direct equity investments as you invest in a large number of stocks instead of a single one. Salaried individuals and investors looking to save on taxes can invest in ELSS funds. Hundreds of mutual funds have performed well in the past few years. Did you know that there are 5 ELSS mutual funds that have performed well in the past three years, doubling investors’ money while also offering income tax benefits? In this article, we provide a list of 5 ELSS tax-saving mutual funds that have doubled an investment of Rs 1.5 lakh to Rs 3.25 lakh in the past three years, giving returns ranging from 100% to 115%.
How did you filter through these ELSS tax saving funds?
We have considered all the ELSS Tax Saving Mutual Funds (Direct Plans).
We filtered for funds that have generated high returns over 26% over the past three years, regardless of expense ratio or AUM size.
We have found five ELSS funds that have generated returns between 26.6% and 29.4% per annum over the last three years, and these funds have helped grow an investment of Rs 15 lakh to over Rs 32.5 lakh today.
5 ELSS Mutual Funds that have delivered returns between 103% and 117% over three years
Here is a list of tax-saving funds.
1st – SBI Long Term Equity Fund – 117% return in the last 3 years
2nd place – Quantitative ELSS Tax Saver Fund – 115% return over the last 3 years
3rd Place – HDFC ELSS Tax Saver Fund – 106% return in the last 3 years.
#4 – Motilal Oswal ELSS Tax Saver Fund – 105% returns in the last 3 years.
#5 – JM ELSS Tax Saver Fund – 103% return in the last 3 years.
5 ELSS Funds That Can Give You 100% to 115% Returns Over 3 Years – Take a Closer Look at These Funds
Let’s take a closer look at these funds’ performance, risk metrics and our views.
1st place – SBI Long Term Equity Fund
Investment Objective:
The main objective of the scheme is to realise gains on investment in equity portfolio and also to provide deduction on the investment made under the scheme under Section 80C of the Income Tax Act, 1961. It also aims to make periodic distribution of income in proportion to the distributable surplus.
Fund Performance
Annualized return over 3 years – 29.4% (from Rs 15 lakh to Rs 32.5 lakh)
Five-year annualized return – 25.9%
10-year annualized return – 17.2%
The fund has generated 18.1% annualized returns since the fund’s inception. With total assets under management of Rs 23,888 crores and an expense ratio of 0.94% for the direct plan, it is a top fund that has outperformed its peers over the last three, five and 10 years.
The fund had its worst year due to the Covid-19 pandemic, with NAV falling 33% from March 2019 to March 2020, and its best year, with NAV increasing 93% from March 2020 to March 2021.
The regular plan of this mutual fund was launched 31 years ago and is one of the oldest mutual funds in India. Investors looking to avail tax savings under section 80c with a lock-in period of three years can invest in such mutual fund schemes.
#2 – Quantitative ELSS Tax Saver Fund
Investment Objective:
The primary objective of Quant ELSS Tax Saver Fund is to generate capital appreciation by investing in a diversified portfolio of equity securities with growth potential. The secondary objective is to provide dividends and other income.
Fund Performance
Annualized return over 3 years – 28.9% (from Rs 15 lakh to Rs 32 lakh)
Five-year annualized return – 36.2%
10-year annualized rate of return – 26.1%
The fund has generated 23.6% annualized returns since the fund’s inception. With total assets under management of Rs 10,528 crore and an expense ratio of 0.77% for the direct plan, it is the second fund to outperform its peers over the last three, five and 10 years.
The fund had its worst year during the Covid-19 pandemic, with NAV falling 31% from March 2019 to March 2020, and its best year, with NAV increasing 160% from March 2020 to March 2021.
Quantitative mutual funds consistently top the charts With its proprietary investment strategy, VLRT (which incorporates valuation, liquidity, risk and timing), this AMC’s assets under management have grown by more than 640 times between 2020 and 2024. Quantitative Frontrunning Scandal It is under investigation. Investors can wait and watch developments on this matter before making an investment decision. If you have already invested, you can continue to invest until the pre-emption is over.
#3 – HDFC ELSS Tax Saver Fund
Investment Objective:
To generate capital appreciation/income from a portfolio consisting primarily of equity and equity related instruments.
Fund Performance
Annualized return over 3 years – 27.2% (from Rs 15 lakh to Rs 31 lakh)
Five-year annualized return – 20.3%
10-year annualized return – 14.7%
The fund has generated returns of 16.4% per annum since the fund’s inception. With total assets under management of Rs 15,674 crore and an expense ratio of 1.13% for its direct investment plan, it is the third fund to outperform its peers over the last three, five and 10 years.
The fund had its worst year due to the Covid-19 pandemic, with NAV falling 39% from March 2019 to March 2020, and its best year, with NAV increasing 86% from March 2020 to March 2021.
The regular plan of this mutual fund was launched 28 years ago, making it one of the oldest mutual funds in India.Investors who want to save 80 cents in tax and are willing to lock in their money for three years can invest in such funds.
#4 – Motilal Oswal ELSS Tax Saver Fund
Investment Objective:
The plan’s investment objective is to generate long-term capital appreciation primarily from a diversified portfolio of equity and equity-related instruments.
Fund Performance
Annualized return over 3 years – 26.9% (from Rs 1.5 lakh to Rs 3.07 lakh)
Five-year annualized return – 25.6%
10-year annualized return – NA
The fund has generated returns of 19.8% per annum since the fund’s inception (Jan 2015). With total assets under management of Rs 3,710 crore and an expense ratio of 0.68% for its direct investment plan, it is the fourth fund to outperform its peers over the last three, five and nine years.
The fund had its worst year due to the Covid-19 pandemic, with NAV falling 27% from March 2019 to March 2020, and its best year, with NAV increasing 84% from March 2020 to March 2021.
Investors looking to avail tax savings of up to Rs 1.5 lakh under section 80c with a lock-in period of three years can invest in such funds.
#5 – JM ELSS Tax Saver Fund
Investment Objective:
The scheme aims to achieve long-term capital growth along with income tax relief on investments. At least 80% of the funds are invested in equity instruments.
Investments up to Rs 15 lakh during a financial year qualify for income tax deduction under section 80c.
Fund Performance
Annualized return over 3 years – 26.6% (from Rs 150,000 to Rs 300,000)
Five-year annualized return – 25.3%
10-year annualized return – 19.1%
The fund has generated 19.5% annualized returns since the fund’s inception. With total assets under management of Rs 1,460 crore and a direct plan expense ratio of 1.13%, the fund is the fifth fund to have outperformed its peers over the last three, five and 10 years.
The fund had its worst year from March 2019 to March 2020 with a 27% drop in NAV and its best year from March 2020 to March 21 with a 95% increase in NAV.
Investors looking to grow their capital and seeking tax savings of up to Rs 1.5 lakh under section 80c and a lock-in period of three years can invest in such funds.
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