7 Best ELSS Schemes To Invest In 2018-19

By Lekhaka
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    There are a wide number of investment opportunities that provide a way out for an easy exemption under section 80C of the Income Tax Act. Investment in Public Provident Fund (PPF), Equity Linked Saving Schemes (ELSS) of mutual funds, National Pension Scheme, bank deposits and National Savings Certificates are eligible for you with an annual deduction under the tax slab and the same time are wise decisions for financial growth and long term wealth creation.

    7 Best ELSS Schemes To Invest In 2018-19
    Most of the investment schemes are for a long term prospect of being stable with assured growth returns. This has narrowed down the diversity of investment and the way to look out for new opportunities in the market.
     

    While pension scheme and National Savings Certificates have been known to provide assured and secure returns in the long term, one easily forgets that the returns received under these schemes are marginal, when inflation is taken into account. Most of the growth rates are in single digit figures.

    NSC and PPF also tend to have a mandatory lock-in period of 6 and 15 years respectively which narrows down the prospect of an investor for long term wealth creation and investment diversity.

    Which Are The Best ELSS Schemes To Invest In?

    The top ELSS mutual funds in 2018-2019 have been analyzed by us based on annual Asset Under Management, their respective rating by Crisil and Value Research Online data. The data has been compiled by us so that there is confidence in investment coupled with double digit growth returns and future wealth generating prospects.

    Reliance Tax Saver Fund

    This fund has given an unbelievable growth rate of 46% in the last one year and the ratings have been good. The fund holds large assets that give stability to investors.

    Axis Long Term Equity Fund

    The diversified portfolio and long term investment should be in the mind of investor while investing here. The SIP had generated 39% return rate in the last one year.

    Aditya Birla SL Tax Relief 96 Fund

    With a 22% return rate last year, this fund has been ranked 2nd by Crisil and rated 5-star by Value Research Online (the higher, the better).

     

    IDFC Tax Advantage ELSS Fund

    It is a new entrant in the list of top performers and is ranked No-1 by Crisil. It promises better prospects giving 55% annual returns in the last one year.

    Tata Tax Advantage Fund

    This fund has performed well with 22% return in the last 5 years. However, you can invest also for a period of three-years, given that ELSS has the lowest lock-in period when compared to all instruments under Sec 80C.

    DSP BR Tax Saver Fund

    This fund generates medium to long term capital appreciation. The company invests in diverse portfolio of security and equity along with tax savings.

    Invesco India Tax Fund

    The mutual fund aims for capital appreciation along with higher tax savings. The last 5 year returns have been of a comfortable margin of 21% and thus promises higher growth prospects.

    Investing in Equity Linked Savings Schemes

    Investment under the ELSS funds can easily provide an exemption of upto Rs 1.5 lakhs under section 80c.

    These investments provide a higher rate of return compared to other NSC, PPF schemes. Mutual fund investments fluctuate with the market, therefore the returns are risky.

    However, risk is still better to take as the performance of ELSS during the past years have seen to be giving returns rates of nearly 17% to 26% which is definitely worth it if long term investments are to be planned.

    ELSS schemes also have a short lock in period of only 3 years, which give an easy return and exit option.

    The dividends can also be chosen to be paid regularly. The SIP investment ensures savings every months rather than a lump sum amount at the end of the month. The investment can also be started with a low amount of Rs. 500 every month.

    Read more about: elss mutual fund
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