TAX SAVING FUNDS (ELSS MUTUAL FUND)

Tax-saving funds or Equity-Linked Saving schemes Mutual Funds are the Mutual funds that are designed to save the Tax of Investors. In Tax saving mutual funds here the Investors pool in their investment to invest in the Equity and Equity related securities of the companies across market capitalization. Such diversification helps to survive in bullish and Bearish markets and able to provide good returns.

Investment in Equity-Linked Saving Mutual funds are eligible for tax benefits under 80C of the Income Tax Act. Investing in Equity-Linked Saving mutual funds can save up to Rs.1.5 Lakh per Year and it is better than the traditional tax-saving plans like PPF (Public Provident Fund), Fixed Deposit, etc.  

The locking period of Equity-Linked Saving mutual funds are for three years, which is less period compared to other available Tax-saving schemes under 80C. 

Advantages of ELSS Mutual Funds:

1. Tax saving funds or Equity-Linked Saving schemes Mutual Funds are eligible for tax benefit under 80C
2. ELSS Mutual funds will save tax up to Rs. 1.5 Lakh per year.
3. This mutual fund provides a Minimum Locking Period of 3 Years.
4. Gains on Equity-Linked Saving Schemes Mutual Funds are considered as long term in nature so it is taxable 10% if gains are above Rs. 1 Lakh as per current tax policy.
5. ELSS Mutual funds provide higher returns compared to other tax-saving plans.
6. This mutual fund is having SIP option for Investors which allows investors to Invest periodically. 

Disadvantages of ELSS Mutual Funds: 

1. Stock market risk is involved in ELSS Mutual Funds. 
2. Withdraw of the fund is restricted for 3 Years, so Investors cannot withdraw funds within the Lock-In period of 3 Years. 
3. ELSS Mutual funds benefits and Tax benefits are limited to Rs.1,50,000 per year. 
4. The Expense Ratio is higher compared to Index mutual funds.

Top 10 Tax saving funds (ELSS Mutual funds):

1.  Canara Robeco Equity Tax Saver Direct Growth:

Fund size                                         :          Rs. 1,181 Cr

1 Yr Return                                      :          12.3% PA

3 Yrs Returns                                  :          9.8% PA

5 Yrs Returns                                  :          11.0% PA

10Yrs Returns                                 :          12.9% PA

NAV as on 28-Oct-2020                  :        Rs. 78.00

Expense Ratio                                 :          1.21 %

2.  QuantTax Plan Direct Growth:

Fund size                                         :          Rs. 17 Cr

1 Yr Return                                      :          24.4% PA

3 Yrs Returns                                  :          9.5% PA

5 Yrs Returns                                  :         16.1% PA

10Yrs Returns                                 :          15.5% PA

NAV as on 28-Oct-2020                  :          Rs. 120.47

Expense Ratio                                 :          0.57%

3.  BOI AXA Tax Advantage Direct Growth:

Fund size                                         :          Rs.309 Cr

1 Yr Return                                      :          17.4% PA

3 Yrs Returns                                  :          7.0% PA

5 Yrs Returns                                  :          11.7% PA

10Yrs Returns                                 :          14.7% PA

NAV as on 28-Oct-2020                  :        Rs. 68.56

Expense Ratio                                 :          1.51%

4.  Mirae Asset Tax Saver Fund Direct Growth:

Fund size                                     :          Rs. 4,270 Cr

1 Yr Return                                  :          11.1% PA

3 Yrs Returns                              :       8.4% PA

5 Yrs Returns                              :       16.64% PA

10Yrs Returns                             :        NA

NAV as on 28-Oct-2020       :          Rs. 21.06

Expense Ratio                              :          0.36%

5.  UTI Long Term Equity (Tax Savings):

Fund size                                          :          Rs. 1,338 Cr 

1 Yr Return                                      :          7.1% PA

3 Yrs Returns                                  :          3.3% PA

5 Yrs Returns                                  :          7.9% PA

10Yrs Returns                                 :          11.2% PA

NAV as on 28-Oct-2020                  :          Rs. 97.59

Expense Ratio                                :           1.41%

6.  Union Tax Saver:

Fund size                                         :          Rs. 270 Cr

1 Yr Return                                      :          6.8% PA

3 Yrs Returns                                  :          4.7% PA

5 Yrs Returns                                  :          6.6% PA

10Yrs Returns                                 :          9.9% PA

NAV as on 28-Oct-2020                  :        Rs. 27.68

Expense Ratio                                 :          1.96 %

7.  Kotak Tax Saver Fund:

Fund size                                         :          Rs. 1,275 Cr

1 Yr Return                                      :          5.1% PA

3 Yrs Returns                                  :          4.7% PA

5 Yrs Returns                                  :         9.9% PA

10Yrs Returns                                 :          12.4% PA

NAV as on 28-Oct-2020                  :          Rs. 50.92

Expense Ratio                                 :          0.98%

8.  Invesco India Tax Plan:

Fund size                                         :          Rs.1,134 Cr

1 Yr Return                                      :          4.8% PA

3 Yrs Returns                                  :          6.5% PA

5 Yrs Returns                                  :          10.3% PA

10Yrs Returns                                 :          15.3% PA

NAV as on 28-Oct-2020                  :        Rs. 60.35

Expense Ratio                                 :          1.00%

9.  Taurus Tax Shield Direct Growth:

Fund size                                     :          Rs. 64 Cr

1 Yr Return                                  :         4.6% PA

3 Yrs Returns                              :         4.5% PA

5 Yrs Returns                              :         9.6% PA

10Yrs Returns                             :         10.5% PA

NAV as on 28-Oct-2020              :       Rs. 85.57

Expense Ratio                             :          1.86%

10.  Aditya Birla Sunlife Tax Relief Plan:

Fund size                                          :      Rs. 11,123 Cr 

1 Yr Return                                      :          3.9% PA

3 Yrs Returns                                  :          2.9% PA

5 Yrs Returns                                  :          9.2% PA

10Yrs Returns                                 :          14.3% PA

NAV as on 28-Oct-2020                  :          Rs. 34.22

Expense Ratio                                :           0.94%

Disclaimer: All the above informationis for educational purposes only, and the mutual fund’s companies shown are not considered as recommendations as the above data might vary from actuals in the period. kindly read the scheme and policy-related documents carefully before investing in any mutual funds and visit the official website for more information.