In this video we cover 3 best tax saving ELSS funds for 2021 – DSP tax Saver Fund, Aditya Birla Sun Life Tax Relief 96 Fund and ICICI Prudential Long Term Equity Fund.
We have also highlighted the advantages of investments in ELSS as under:
1. Tax deductions of Rs. 1.5 lakhs under section 80 of the Income Tax Act 1961 for saving Rs. 46,800 every year in taxes.
2. Lowest lock-in period in ELSS of only 3 years
3. ELSS have the highest expected returns amongst all tax saving options
4. Better tax treatment of ELSS funds give it a higher post-tax return advantage
5. Tax saving ELSS funds have a flexibility in terms of withdrawal option
6. One can opt to invest through SIPs in ELSS funds
Returns of top 3 funds are as under:
Rank #1: DSP Tax Saver Fund – The fund has given returns of 13.19% in the last 5 years
Rank #2: Aditya Birla Sun Life Tax Relief 96 Fund – The fund has given returns of 11.18% in the last 5 years Rank
#3: ICICI Prudential Long Term Equity Fund – The fund has given returns of 10.19% in the last 5 years.