Best ELSS Mutual Funds to Invest in 2024

Equity Linked Savings Schemes (ELSS) are among the most popular tax-saving investment options under Section 80C of the Income Tax Act, 1961. With a lock-in period of three years, ELSS offers the dual benefit of wealth creation and tax savings. For those looking to invest in ELSS funds in 2024, several options stand out based on their performance, consistency, and fund management quality.

Key Features of ELSS Mutual Funds

• Tax Savings: Investments up to ₹1.5 lakh in ELSS are eligible for tax deduction under Section 80C.
• Lock-in Period: ELSS funds have the shortest lock-in period among Section 80C options, at just three years.
• Equity-Oriented: A significant portion of the fund is invested in equities, offering potential for high returns.
• Flexibility: Investors can opt for lump-sum investments or Systematic Investment Plans (SIPs).

Top ELSS Mutual Funds for 2024

1. Mirae Asset Tax Saver Fund

• Category: ELSS
• Returns (5-Year CAGR): ~20%
• Expense Ratio: Low
• Investment Strategy: This fund follows a diversified approach with a mix of large-cap and mid-cap stocks. It focuses on quality companies with robust financials.

2. Axis Long Term Equity Fund

• Category: ELSS
• Returns (5-Year CAGR): ~18%
• Expense Ratio: Moderate
• Investment Strategy: Known for its consistent performance, this fund emphasizes long-term capital appreciation by investing in high-growth companies.

3. Kotak Tax Saver Fund

• Category: ELSS
• Returns (5-Year CAGR): ~16%
• Expense Ratio: Moderate
• Investment Strategy: The fund primarily invests in large-cap stocks and is known for its stability during market volatility.

4. Canara Robeco Equity Tax Saver Fund

• Category: ELSS
• Returns (5-Year CAGR): ~19%
• Expense Ratio: Low
• Investment Strategy: This fund focuses on quality large-cap and mid-cap companies, making it a reliable choice for conservative investors.

5. Invesco India Tax Plan

• Category: ELSS
• Returns (5-Year CAGR): ~17%
• Expense Ratio: Low
• Investment Strategy: It follows a growth-oriented approach by investing in a mix of large-cap and mid-cap stocks. The fund has consistently outperformed its benchmark.

How to Choose the Right ELSS Fund

• Past Performance: Analyze the fund’s historical returns, especially during market downturns.
• Expense Ratio: Lower expense ratios can enhance net returns over time.
• Fund Manager Expertise: A skilled fund manager can navigate market volatility effectively.
• Investment Horizon: Ensure your goals align with the minimum three-year lock-in period.
• Portfolio Composition: Look for a diversified portfolio that balances large-cap and mid-cap stocks.

Disclaimer

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. Past performance is not indicative of future returns. Consult a financial advisor to understand the suitability of the product based on your risk profile and financial goals.