These 5 ELSS Funds Have Given More Than 29% Returns In 3-Year

People are now investing in mutual funds because they often provide greater returns than other fixed investment choices. Having said that, in addition to helping their assets increase in the long term, mutual fund investments also assist them to reduce their tax obligation. One tax saver scheme is ELSS. Equity Linked Saving Scheme (ELSS) as the name suggests, the scheme's savings are invested in equities markets and delivers high returns, but also highly risky funds with tax benefits.

Why one should invest in Equity Linked Saving Scheme?

ELSS is a diversified equities mutual fund that is commonly used by investors to avoid taxes. The ELSS scheme requires that at least 65% of the fund's assets be invested in the stock market. The funds invested are diverse and spread over several sectors, market capitalizations, topics, and industries. ELSS funds are a good investment destination for investors with a high-risk appetite since these mutual funds give tax benefits under Section 80C of the Income Tax Act. Equity-linked savings plans have a 3-year lock-in term. If your returns from the investment are low after the lock-in period owing to market underperformance, you can continue to participate in the fund without quitting.

Annualized Returns (Lump Sum Investment)

On Investment of Rs 10,000

ELSS Mutual Fund	3-Year	5-Year
Quant Tax Plan - Direct Growth Plan-Growth	40.33%	25.15%
SBI Tax Advantage Fund Series III Direct Growth	39.34%	25.70%
SBI Long Term Advantage Fund Series IV- Direct Plan Growth	38.02%	-
BOI AXA Tax Advantage Fund- Direct Plan- Growth	29.43%	20.20%
BOI AXA Midcap Tax Fund Series 1- Direct Growth	29.29%

SIP Returns - Absolute Returns

On Investment of Rs 1,000

ELSS Mutual Fund	3-Year	5-Year
Quant Tax Plan - Direct-Growth	100.34%	126.27%
SBI Tax Advantage Fund Series III- Direct- Growth	79.16%	113.50%
SBI Long Term Advantage Fund Series IV- Direct Plan Growth	86.59%
BOI AXA Tax Advantage Fund- Direct Plan- Growth	56.93%	74.12%
BOI AXA Midcap Tax Fund Series 1- Direct Growth	60.17%

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, Terms and Conditions carefully before investing. The above-mentioned information is purely informational and carried forward from MoneyControl. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.