If you are an investor looking for a tax-saving fund, and have a high-risk appetite, equity-linked saving schemes (ELSS) could be the thing for you. ELSS, which come with a three-year lock in, invest at least 80 percent of their assets in stocks and equity-related instruments. ELSS investments can be grouped with the other tax deductibles under section 80C of the Income Tax Act.

Fund managers of these schemes generally take a flexi-cap approach, which has served them well. Over the last three and five-year periods, these schemes have given 17.74 percent and 15.65 percent returns, respectively as per Value Research data.