Best ELSS mutual funds to invest in 2024 are listed below:

1.) Quant Tax Plan-Growth

Quant Tax Plan-Growth is a Best Equity Linked Savings Scheme (ELSS) fund, which means that it basically invests in equities and equity-related instruments. ELSS mutual funds offer tax benefits under Section 80C of the Income Tax Act, 1961.

NAV: 270.96
Expense ratio: 1.85% for Regular plan, 0.76% for Direct plan
AUM: ₹4,925 Crores

Returns:

Fund name	1 year (%)	3 year (%)	5 year (%)
Quant Tax Plan Growth	8.4%	32.65%	24.98%

Top 5 holdings:

Reliance Industries Ltd. (7.78%)
Infosys Ltd. (6.19%)
HDFC Bank Ltd. (5.71%)
ICICI Bank Ltd. (5.51%)
Tata Consultancy Services Ltd. (5.10%)

2.) Bank of India Tax Advantage Fund

The Bank of India Tax Advantage Fund Regular Growth plan is an Equity Linked Savings Scheme (ELSS) fund, which means that it invests in equities and equity-related instruments. ELSS mutual funds offer tax benefits under Section 80C of the Income Tax Act, 1961.

NAV: 117.00
Expense ratio: 2.26%
AUM: ₹888.58 Crores

Returns:

Fund name	1 year (%)	3 year (%)	5 year (%)
Bank of India Tax Advantage Fund Regular Growth	14.15%	23.66%	19.93%

Top 5 holdings:

HDFC Bank Ltd. (7.68%)
Reliance Industries Ltd. (7.64%)
Infosys Ltd. (6.62%)
ICICI Bank Ltd. (6.31%)
Tata Consultancy Services Ltd. (5.81%)

3.) Bandhan Tax Advantage (ELSS) Fund - Regular Plan-Growth

The Bandhan Tax Advantage (ELSS) Fund - Regular Plan - Growth is an Equity Linked Savings Scheme (ELSS) fund, which means that it invests in equities and equity-related instruments. ELSS funds offer tax benefits under Section 80C of the Income Tax Act, 1961.

NAV: 116.19
Expense ratio: 1.79%
AUM: ₹5160.17 Crores

Returns:

Fund Name	1 yr (%)	3 yr (%)	5 yr (%)
Bandhan Tax Advantage (ELSS) Fund - Regular Plan - Growth	13.95%	29.08%	17.01%

Top 5 holdings:

HDFC Bank Ltd. (6.55%)
Reliance Industries Ltd. (6.48%)
Infosys Ltd. (5.93%)
ICICI Bank Ltd. (5.80%)
Tata Consultancy Services Ltd. (5.43%)

4.) JM Tax Gain Fund - Growth

The JM Tax Gain Fund - Growth plan is an ELSS fund, which means that it invests in equities and equity-related instruments. ELSS funds offer tax benefits under Section 80C of the Income Tax Act, 1961.

NAV: 33.4313
Expense ratio: 2.4% for Regular plan, 0.76% for Direct plan
AUM: ₹92.34 Crores

Returns:

Fund Name	1 yr (%)	3 yr (%)	5 yr (%)
JM Tax Gain Fund - Growth	15.74%	22.88%	16.81%

Top 5 holdings:

ICICI Bank Ltd. (7.44%)
HDFC Bank Ltd. (7.37%)
Infosys Ltd. (7.12%)
Reliance Industries Ltd. (6.86%)
Larsen & Toubro Ltd. (6.75%)

5.) DSP Tax Saver Fund Regular Plan-Growth

The DSP Tax Saver Fund Regular Plan Growth is an Equity Linked Savings Scheme (ELSS) fund, which means that it invests in equities and equity-related instruments. ELSS funds offer tax benefits under Section 80C of the Income Tax Act, 1961.

NAV: 96.65
Expense ratio: 1.69%
AUM: ₹4,053 Crores

Returns:

Fund Name	1 yr (%)	3 yr (%)	5 yr (%)
DSP Tax Saver Fund Regular Plan Growth	12.2%	23.45%	16.77%

Top 5 holdings:

Reliance Industries Ltd. (7.55%)
Infosys Ltd. (6.91%)
HDFC Bank Ltd. (6.28%)
ICICI Bank Ltd. (6.26%)
Tata Consultancy Services Ltd. (6.11%)

6.) Union Tax Saver (ELSS) Fund Growth

The Union Tax Saver (ELSS) Fund Growth plan is an Equity Linked Savings Scheme (ELSS) fund, which means that it invests in equities and equity-related instruments. ELSS funds offer tax benefits under Section 80C of the Income Tax Act, 1961.

NAV: 48.45
Expense ratio: 2.35%
AUM: ₹708.49 Crores

Returns:

Fund name	1 yr(%)	3 yr (%)	5 yr (%)
Union Tax saver (ELSS) Fund Growth	11.2%	22.53%	16.6%

Top 5 holdings:

Reliance Industries Ltd. (7.78%)
Infosys Ltd. (6.19%)
HDFC Bank Ltd. (5.71%)
ICICI Bank Ltd. (5.51%)
Tata Consultancy Services Ltd. (5.10%)

7.) SBI Long-Term Equity Fund Regular Growth

SBI Long Term Equity Fund Regular Growth is a large-cap-oriented equity fund that invests in a diversified portfolio of large-cap companies across all sectors of the Indian economy. The fund has a long-term investment horizon and aims to generate capital appreciation for investors over the long term.

NAV: 289.7788
Expense ratio: 1.71%
AUM: ₹16,245.34 crores

Returns:

Fund name	1 yr(%)	3 yr (%)	5 yr (%)
SBI Long Term Equity Fund Regular Growth	21.2%	26.37%	16.52%

Top 5 holdings:

Reliance Industries Ltd. (7.78%)
Infosys Ltd. (6.19%)
HDFC Bank Ltd. (5.71%)
ICICI Bank Ltd. (5.51%)
Tata Consultancy Services Ltd. (5.10%)

8.) Kotak ELSS Tax Saver-Scheme- Growth

Kotak ELSS Tax Saver Scheme - Growth is an Equity Linked Savings Scheme (ELSS) fund, which means that it invests in equities and equity-related instruments. ELSS funds offer tax benefits under Section 80C of the Income Tax Act, 1961.

NAV: 85.581
Expense ratio: 1.69% (Regular plan), 0.76% (Direct plan)
AUM: ₹4,198.6 crores (Regular plan)

Returns:

Fund name	1 yr (%)	3 yr (%)	5 yr (%)
Kotak ELSS Tax Saver Scheme	11.56%	22.74%	16.44%

Top 5 holdings:

Reliance Industries Ltd. (7.78%)
Infosys Ltd. (6.19%)
HDFC Bank Ltd. (5.71%)
ICICI Bank Ltd. (5.51%)
Tata Consultancy Services Ltd. (5.10%)

9.) Motilal Oswal Long Term Equity Fund Regular Plan-Growth

Motilal Oswal Long Term Equity Fund Regular Plan Growth is a large-cap-oriented equity fund that invests in a diversified portfolio of large-cap companies across all sectors of the Indian economy. The fund has a long-term investment horizon and aims to generate capital appreciation for investors over the long term.

NAV: 32.2562
Expense ratio: 1.91%
AUM: ₹25,768.5 crores

Returns:

Fund name	1 yr (%)	3 yr (%)	5 yr (%)
Motilal Oswal Long Term Equity Fund Regular Plan-Growth	18.21%	23.65%	14.89%

Top 5 holdings:

Reliance Industries Ltd. (8.80%)
Infosys Ltd. (6.98%)
HDFC Bank Ltd. (6.45%)
ICICI Bank Ltd. (5.99%)
Tata Consultancy Services Ltd. (5.79%)

Who Should Invest in ELSS Mutual Funds?

Before investing in ELSS mutual funds you should keep these things in mind:

Lock-in period: ELSS mutual fund has a lock-in period of about 3 years. During this period, you are not allowed to withdraw any amount. So the investor, who is investing should keep in mind that he/she will be able to withdraw the amount after 3 years.

Risk Factor: Elss mutual funds are equity-oriented funds so they are already influenced by market fluctuations. Also, these are all acquired by the equity instruments and changes in the market. So before investing assess its risk profile as well.

SIP or lumpsum: Investing has two ways: either deposit every month, every day or you can invest at once and lock in till you want. While investing in mutual funds through daily sip or monthly sip you can withdraw whenever you feel like but if you are investing through lump sum then you need to keep in mind that you can’t withdraw the amount before three years because it provides a lock-in period of 3 year

Comparison with other Tax Saving Investments

Tax savings investments are of several types, also there are many such types which provide the best returns but are taxable. This is the reason why many investors prefer tax-saving mutual funds other than the PPF, NPS, and many more. Here is an overview of the different tax savings investments with tax-saving mutual funds.

Investment	Returns	Lock-in-period	Tax on Returns
Fixed Deposit of 5 years	6-8%	5 Years	Yes
Public Provident Fund	7-8%	15 Years	No
National savings certificate	7-8%	5 Years	Yes
National Pension System	8-10%	Till Retirement	Partially Taxable
ELSS Mutual funds	15-18%	3 Years	Partially Taxable

So, the above table makes it clear that the ELSS mutual fund provides the best returns with partial to no tax on returns.

Why Invest in ELSS Mutual Fund Schemes?

⇛ Tax Benefits: ELSS mutual fund schemes offer tax benefits under Section 80C of the Income Tax Act, 1961. Investors can invest in Equity Linked Savings Scheme or ELSS funds and easily claim a deduction of up to Rs. 1.5 lakh from the taxable income. This can help investors save a significant amount of money on their tax liabilities.

⇛ Lock-in Period: ELSS tax saving funds have a compulsory lock-in period of three years. This means that investors cannot redeem their investments before the end of this period. While this may be seen as a drawback by some investors, it can also be viewed as a positive feature as it encourages long-term investment and prevents investors from making hasty decisions in light of short-term market fluctuations.

⇛ Potential for High Returns: Tax-saving mutual fund schemes invest primarily in equity, and boast massive potential to offer high returns over a long period. While there is no guarantee of returns, historical data suggests that the best tax saving mutual funds have outperformed other tax-saving investment options such as Public Provident Fund (PPF) and National Savings Certificate (NSC) over the long term.

⇛ Diversification: These tax-saving funds invest in a diversified portfolio of stocks across various sectors and market capitalizations. This helps to reduce the risk of concentration and provides investors with exposure to a range of industries and companies.

⇛ Professional Management: ELSS tax saving scheme funds are managed by professional fund managers who have expertise in selecting stocks and managing portfolios. This can help investors who may not have the time or expertise to manage their own investments.

⇛ Flexibility: ELSS funds offer investors the flexibility to invest through Systematic Investment Plans (SIPs) or lump-sum investments. This allows investors to choose a mode of investment that suits their financial goals and investment horizon.

Faqs:

1. Who Should Invest in ELSS Mutual Funds?

Investors in ELSS seek long-term gains that outperform inflation while also offering tax advantages.

2. How to invest in ELSS Funds?

Investment in the ELSS fund can be done in the same way as in any mutual fund.

3. Advantages of Investing in ELSS Funds

Investing in ELSS (Equity Linked Savings Scheme) funds offers tax benefits and the potential for long-term wealth creation through equity investments in the Indian market.

4. How to invest in Best ELSS mutual funds online?

You can invest in ELSS mutual funds online through online platforms such as ZFunds App..

Log on to Zfunds App.
You can pick the mutual fund house from the list of fund houses
Select the ELSS mutual fund scheme based on your investment objectives and risk tolerance.
Then perform all the formalities related to fund investment.
Select the amount you plan to invest in the ELSS mutual fund scheme and the mode as either One Time or Monthly SIP.

5. Is ELSS a good mutual fund option?

Yes, ELSS can be a good mutual fund option for those seeking tax-saving opportunities with the potential for higher returns through equity investments in India.

6. Is PPF better than ELSS?

PPF (Public Provident Fund) offers safety and fixed returns, while ELSS offers the potential for higher returns but involves market risk; the choice depends on your financial goals and risk tolerance.

7. Is ELSS high risk?

Yes, due to its exposure to stock markets, ELSS (stock Linked Savings Scheme) has a higher risk than other investment options.

More Information:

MFD Karein Shuru

Difference between ELSS and ULIP
ELSS VS PPF
Best large cap mutual funds to invest in India
Best Small Cap Mutual Funds to invest in India
Best Multi Cap Mutual Funds to invest in India
Nippon India Small Cap Fund

Mirae Asset Large Cap Fund

Nippon India Growth Fund

Axis Flexi Cap Fund