Save Tax and Earn Massive Returns with Elss Mutual Funds

Manish Kothari
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isVerifiedExpertAuthor is a Zfunds Verified Expert
Manish Kothari

Top Performing ELSS Mutual Funds to Invest in 2023

ELSS Funds are mutual funds that invest across different market capitalization categories. What makes these funds different from multi cap funds is that investments upto Rs. 1,50,000 in ELSS is eligible for deduction from taxable income under section 80C of the Income Tax Act. 

Market Capitalization is defined as the market value of all outstanding shares and is achieved by multiplying the total number of shares outstanding by the market price per share.

Some of the characteristics of a ELSS Mutual fund are as follows:

  • They provide a diversification since they invest across large cap mutual funds, mid cap mutual funds and small cap mutual funds
  • Lower expected volatility
  • Suitable for investors with medium risk appetite
  • Highly suitable for clients looking to invest in tax saving options
  • They have a lock-in period of 3 years
  • Fund manager has the leeway to increase allocation to a particular category based on market view

The following are the top-rated ELSS mutual funds as per ZFunds scoring for the quarter ended Sept. 2020. The funds with the highest ZF Score (refer methodology here) are ranked at the top. The complete list of funds can be seen in the Annexure at the end of this article.

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