Equity Linked Saving Scheme or ELSS is a mutual fund saving scheme that can help a person in saving income tax. Thus, it is also called as a tax-saving mutual fund. ELSS is suitable for people who have good knowledge and are keen to take risks. They are the best investment option when it comes to saving and growing money.
With the varied number of ELSS funds available in the market, selecting an ELSS mutual fund that suits your individual requirement can become a tedious process. To help the investors choose one in 2020, a list of the top 10 ELSS funds are mentioned here. The following is a list of top 10 elss funds to invest in 2020
Top 10 ELSS funds one can opt for in 2020
1. Aditya Birla Sun Life Tax Relief 96
Aditya Birla Sun Life Tax Relief 96 is an equity-linked saving scheme that is open-ended. Its objective is to provide long term growth to capital. This is done through a portfolio which includes a target allotment of money market securities, 80% equity and 20% debt. The equity stocks of Aditya Birla Sun Life Tax Relief 96 has a stable management team and also enjoys a definite competitive advantage.
2. Axis Long Term Equity Fund
Axis Long Term Equity Funds is an open-ended, equity-linked saving scheme that is diversified in nature. It includes investment in a mixture of selected midcaps and large caps. These funds also help in generating income from long-term capital appreciation and involve a high value of assets. In these funds, investments can be made from a minimum amount of Rs. 500.
3. DSP Tax Saver Fund
DSP Tax Saver Fund is a tax-saving investment scheme that includes investment in equity and related securities of relatively highly growing corporates. These funds have a history of delivering some exceptional returns in the past. The CSP Tax Saver Fund allocates around 77% of the assets in large-cap stocks which helps in protecting it from frequent market fluctuations.
4. Motilal Oswal Long Term Equity Fund
The Motilal Oswal Long Term Equity Fund includes investments in equity and related securities of companies with a high growth rate. The investment is of various classes of assets which includes debt and equity securities. The main objective of this fund is to achieve the long term goal of wealth creation. The Motilal Oswal Long Term Equity Funds offer an excellent opportunity for diversified investments.
5. Mirae Asset Tax Saver
The Mirae Asset Tax Saver is a scheme the involves investment in the equity and related stocks of the primarily flourishing companies. These funds are entirely new in the market. Since its inception, the Mirae Asset Tax Saver has delivered returns of about 19.39%. These funds offer long term growth appreciation, tax savings along with flexibility in terms of investment.
6. Invesco India Tax Plan
The main objective of an Invesco India Tax Plan is to generate the growth of capital for the long term. These are open-ended investment schemes with a three year lock-in period. Under Section 80C, these funds help in saving income tax. They are managed from a long term perspective and include a diversified and balanced portfolio of equity and related securities.
7. Kotak Tax Saver
The Kotak Tax Saver funds help in generating long term capital appreciation and offers a dual benefit of tax saving and growth. Theses are open-ended schemes and have a lock-in period of three years. It includes a portfolio of generally diversified sectors and segments of market capitalization. These funds also help the investors in availing a rebate on income tax. The minimum amount of investment that can be made is Rs 1,500.
8. SBI Magnum Tax Gain Scheme
SBI Magnum Tax Gain Scheme consists of a portfolio that has equity funds. Under Section 80C, this equity-linked saving scheme aims to help the investors in availing deduction. It also helps in distributing the surplus income in a periodical way. This fund is considered to have performed neutrally for an extended period of time now. The risk level in this fund is below average.
9. ICICI Prudential Long Term Equity Fund
ICICI Prudential Long Term Equity Fund is an open-ended scheme that provided long term maximization of wealth along with tax benefits. These funds involve investments in money markets, equity, and debt. They also offer savings up to Rs 46,800 and shortest lock-in periods. The risks involved are comparatively less as it is a multi-cap fund.
10. Canara Robeco Equity Tax Saver Fund
Canara Robeco Equity Tax Saver Fund is more suitable for the investors who are looking to invest the money for a minimum of three-years. They offer a high return on investment, along with income tax benefits.
Falling under the diversified mutual funds’ category, Equity Linked Saving Scheme provides a dual benefit of tax saving and capital appreciation. So, the investors can choose an ELSS fund that meets all their needs and especially, goes with the risk appetite of an individual.