Best ELSS Funds for Tax Saving and Growth in 2024
Among the most sought-after tax-saving options under Section 80C of the Income Tax Act are ELSS funds. ELSS funds, in essence, provide two benefits, namely tax savings as well as wealth creation possibilities through equity investments. Here are some of the top-performing ELSS funds –
Quant ELSS Tax Saver, with a return of 20.84%, expense ratio of 0.59%, and AUM of Rs 11,561 crore.
SBI Long Term Equity stood out with a return of 26.84%, an expense ratio of 0.93%, and an AUM of Rs 28,733 crore.
HDFC ELSS Tax Saver followed the same with a return of 24.05%, an expense ratio of 1.09%, and an AUM of Rs 16,761 crore.
Kotak ELSS Tax Saver, Bandhan ELSS Tax Saver, and DSP ELSS Tax Saver offer 20.73%, 18.21%, and 21.78% respectively robust returns, competitive expense ratio, and have sizeable AUMs.
Some other impressive funds include Parag Parikh ELSS Tax Saver offering 20.11% return, with the expense ratio being 0.62%, and Tata ELSS Tax Saver offering a 19.68% return, with 0.70% as an expense ratio.
Mirae Asset ELSS Tax Saver Fund has returns of 17.5% and an expense ratio of 0.61%. These funds seem like a good performer with low operating expenses and, therefore, even more attractive to investors as a tax-saving opportunity.
The ELSS funds carry a lock-in period of three years, which is less than other tax-saving schemes such as PPF or fixed deposits. They also save tax on long-term capital gains of up to Rs 1.25 lakh, which are otherwise tax-free. Anything above that attracts a tax of 12.5%, while the short-term capital gains attract a tax of 20%. All these features make ELSS funds a very attractive option for investors who want to save taxes while earning higher returns from equity markets. With disciplined investments and a long-term approach, ELSS funds can become a very useful tool for financial growth and tax planning.
