Good returns and tax-savings: A winning combo by top tax-saving MFs
The interim Budget 2023 might not have any goodies in store for those who were seeking a relaxation in the Section 80C tax deduction basket. But Equity-Linked Saving Schemes still remain a great catch
It’s time to submit investment proofs to your employer to save on taxes. Equity linked saving schemes (ELSS) stand out due to their lowest lock-in and pure equity-linked return in the crowded Section 80C tax deduction basket. Under the old tax regime, investments in ELSS up to Rs 1.5 lakh gets you income-tax deduction benefits. Investments in ELSS are locked-in for three years. ELSS is often better-placed if the investor is keen on capital appreciation in the long term. Systematic investment in ELSS help not only to save tax but also to generate wealth over long run. Here, we compiled the list of top ELSS based on the 5-year SIP rolling returns calculated from the last 10-year period. Only schemes with 10 years’ track record were considered. Remember, though, that past performance does not guarantee future performance. Data source: ACEMF. Two of these schemes are in MC30; a curated basket of 30 best mutual fund (MF) schemes.
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Quant ELSS Tax Saver Fund Average of 5 year SIP rolling return (XIRR): 21.2% Fund manager(s): Vasav Sahgal and Ankit A Pande
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Bank of India ELSS Tax Saver Average of 5 year SIP rolling return (XIRR): 15.4% Fund manager(s): Alok Singh
