Top 12 ELSS Mutual Fund Schemes that have Delivered Over 20% XIRR on SIP in 3 Years
As the financial year is about to end in one month, many individuals use the last few months to invest in tax-saving instruments like equity-linked savings schemes (ELSS) to claim deductions under Section 80C of Income Tax. In the last three years, some ELSS mutual funds have delivered decent returns.
What are ELSS Funds?
The Equity-Linked Savings Scheme (ELSS) is a type of mutual fund that invests in equities. These are tax-saving schemes in which individuals can claim a deduction of up to Rs. 1,50,000 by investing in ELSS mutual funds. It has a lock-in period of 3 years, and there is no maximum limit on how long investors can hold their investments after 3 years. Due to its short lock-in period, it is a popular choice among investors. Around 10 ELSS funds have offered an XIRR of up to 20% in the last three years. Let’s take a glance at these funds.
ELSS Mutual Funds Performance Analysis in Three Years
| ELSS Mutual Fund | Last three years XIRR (%) |
| SBI Long Term Equity Fund | 22.2 |
| HDFC ELSS Tax Saver | 19.22 |
| Motilal Oswal ELSS Tax Saver Fund | 18.88 |
| DSP ELSS Tax Saver Fund | 16.93 |
| Quantum ELSS Tax Saver Fund | 16.34 |
| Parag Parikh ELSS Tax Saver Fund | 16.34 |
| Franklin India ELSS Tax Saver Fund | 15.99 |
| JM ELSS Tax Saver Fund | 15.87 |
| HSBC ELSS Tax Saver Fund | 15.66 |
| Taurus ELSS Tax Saver Fund | 15.1 |
| Nippon India ELSS Tax Saver Fund | 12.56 |
| Invesco India ELSS Tax Saver Fund | 12.52 |
SBI Long Term Equity Fund has offered the highest XIRR of 22.20% over the last three years. A monthly SIP of Rs. 1,000 would have been 49,671 now.
HDFC ELSS Tax Saver gave an XIRR of around 19.22% in the mentioned period. Motilal Oswal ELSS Tax Saver Fund offered around 18.88% in the same period.
Quantum ELSS Tax Saver Fund and Parag Parikh ELSS Tax Saver Fund both delivered an XIRR of around 16.34% in the similar period. Franklin India ELSS Tax Saver Fund offered 15.99% XIRR over the last three years. A monthly SIP of Rs. 1,000 would have been around Rs. 45,549. The Tauras ELSS Tax Saver Fund offered around 15.10% of XIRR in the similar period.
Nippon India ELSS Tax Saver Fund offered an XIRR of 12.56%, followed by Invesco India ELSS Tax Saver Fund, which gave 12.52% XIRR in the last three years. The lowest return was given by the Shriram ELSS Tax Saver Fund, which gave 5.34% in the last three years.
It should be noted that this is the analysis of the top performers in equity-linked savings schemes and not a recommendation. It is best to do your own research and consider other factors, including your financial situation, risk tolerance and investment horizon, before investing in the small-cap funds.
