Top Performing ELSS Tax Saver Funds
Ranked by 3-Year CAGR performance across Direct Growth plans from verified AMC filings.
| Scheme Name & AMC | Rating | AUM (₹ Cr) | 1Y Return | 3Y CAGR | 5Y CAGR |
|---|---|---|---|---|---|
Motilal Oswal ELSS Tax Saver Fund Motilal Oswal Mutual Fund | 4 | ₹4,890 | +4.05% | +19.55% | +15.94% |
SBI LT Advantage Fund-V SBI Funds Management | — | ₹381 | -0.57% | +19.52% | +13.60% |
JM ELSS-Tax Saver Fund JM Financial Mutual Fund | — | ₹240 | +3.25% | +15.19% | +12.32% |
HSBC ELSS Tax saver Fund HSBC Global Mutual Fund (India) | 3 | ₹3,974 | +0.59% | +14.96% | +11.37% |
WOC ELSS Tax Saver Fund WhiteOak Capital Mutual Fund | — | ₹481 | -0.26% | +14.90% | +0.00% |
ITI ELSS Tax Saver Fund ITI Mutual Fund | 3 | ₹445 | -0.06% | +14.59% | +11.17% |
Quant ELSS Tax Saver Fund Quant Money Managers | 2 | ₹13,103 | +6.65% | +14.04% | +13.13% |
Bank of India Midcap Tax Fund-Sr 1 Bank of India Investment Managers | — | ₹68 | +6.23% | +13.93% | +9.93% |
Baroda BNP Paribas ELSS Tax Saver Fund Baroda BNP Paribas Mutual Fund India | 4 | ₹857 | -0.04% | +13.82% | +9.94% |
Edelweiss ELSS Tax saver Fund Edelweiss Mutual Fund | 3 | ₹428 | -0.09% | +12.71% | +10.43% |
SBI ELSS Tax Saver Fund SBI Funds Management | 5 | ₹30,027 | -5.99% | +12.67% | +13.11% |
Bank of India Midcap Tax Fund-Sr 2 Bank of India Investment Managers | — | ₹32 | +1.89% | +12.64% | +9.03% |
DSP ELSS Tax Saver Fund DSP Investment Managers | 4 | ₹15,569 | -4.21% | +12.31% | +10.62% |
HDFC ELSS-Tax Saver Fund HDFC Mutual Fund | — | ₹14,949 | -8.34% | +12.15% | +12.35% |
ICICI Pru LT Wealth Enhancement Fund ICICI Prudential Mutual Fund | — | ₹37 | -6.78% | +12.13% | +11.21% |
SEBI Mandate & Category Classification
Equity Linked Savings Schemes (ELSS) are diversified equity funds that qualify for tax deduction up to ₹1.5 Lakh per financial year under Section 80C of the Income Tax Act (Old Tax Regime). They feature a mandatory 3-year statutory lock-in, which is the shortest lock-in among all 80C instruments (vs 5 yrs for Tax FD, 15 yrs for PPF).
Category Highlights
- Shortest lock-in period (3 years) among all Section 80C tax-saving options
- Full equity compounding potential compared to 7.1% PPF or fixed deposits
- Mandatory 80% equity allocation across market caps
Taxation Rules (Post-Budget 2024)
Tax Deductions: Eligible for up to ₹1.5L deduction under Section 80C (Old Regime). Capital gains: LTCG at 12.5% above ₹1.25L exemption upon redemption after the 3-year lock-in.
Who Should Invest?
- •Salaried professionals opting for the Old Tax Regime seeking tax deductions under Section 80C.
- •Investors looking for disciplined wealth creation combined with tax optimization.
- •Investors who appreciate that the 3-year lock-in prevents emotional panic selling during downturns.
Risks to Consider
- •No premature redemption: money is legally locked in for exactly 36 months from the date of each SIP installment.
- •Equity market volatility over the 3-year lock-in window.
What if you invest ₹10,000/month in ELSS Tax Saver Funds?
Projected wealth growth assuming a category benchmark CAGR of 13% compounded monthly:
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Frequently Asked Questions: ELSS Tax Saver Funds
How does the 3-year lock-in work for ELSS SIP investments?
Each monthly SIP installment has its own separate 3-year lock-in period. For example, an installment made in March 2025 unlocks in March 2028; an installment made in April 2025 unlocks in April 2028.
Is ELSS beneficial under the New Tax Regime?
Section 80C deductions are not available under the New Tax Regime. However, ELSS remains an excellent diversified equity fund with an enforced 3-year holding discipline.
How does ELSS compare to PPF and Tax-Saving Fixed Deposits?
ELSS has a 3-year lock-in vs 15 years for PPF and 5 years for Tax FDs. ELSS offers inflation-beating equity returns (12-14% CAGR) compared to 7.1% for PPF and 6.5-7% for Bank FDs.
Can I keep holding ELSS after the 3-year lock-in finishes?
Yes! You are not forced to sell after 3 years. You can continue holding your ELSS investment indefinitely to maximize long-term compounding.