Press "Enter" to skip to content

Best ELSS Funds to Invest in 2018

People looking for investments under Section 80(C) to save income tax, generally, go with traditional fixed income instruments like Fixed Deposits, PPF, etc.

But, nowadays, we are seeing a change in this pattern as the interest rates have started to come down every quarter and more and more people are moving towards equity investments for higher returns.

Here, comes ELSS funds into the picture, which can provide great returns as well as can serve tax saving purposes for an individual under Section 80(C).

In this article, I am going to highlight some of the best ELSS funds available in the market which will help the investors in making an informed decision regarding their investments.

I have selected the below funds based on the following parameters –

  1. Consistent Performer in the long run
  2. Importance has been given to the fund’s performance across various market cycles
  3. Crisil Rank 1, 2 and 3 funds and Value Research 5, 4 and 3-star rating funds

ELSS Funds:

  • Aditya Birla Sun Life Tax Relief 96

This scheme is one of the best in the ELSS segment and has been since its inception.

The fund has beaten most of its peers and given returns of 22.71% in the last 5 years which is quite amazing and 9.13% in 10 years which is marginally less than the category average of 9.46%.

The AUM for this fund has risen close to 4.5K cr which shows investors’ confidence in this fund.

It has consistently performed over various market cycles but did lose a little more than the benchmark during the bear phases of 2008 and 2011 but has delivered superior returns during the bull years of 2007, 2009, 2012 and 2014.

The fund has picked up its pace in the last 5 years and is consistently performing well with respect to the benchmark and the category.

This fund is highly regarded by SIP investors and one can start investing in them for medium to long-term horizon.

Also Read: Direct Plan vs Regular Plan

  • IDFC Tax Advantage Fund

This scheme is also one of the best in the ELSS segment and has been since its inception.

The fund has beaten most of its peers and given returns of 21.86% in the last 5 years which is quite amazing and 14.89% in the last 7 years which shows the consistency of the fund.

The AUM for this fund has risen close to 1K cr which shows investors’ confidence in this fund.

It has consistently performed over various market cycles and did very well during the bear phases of 2011 and 2015 where the fund lost less than its benchmark and category and even gave profits in 2015 but the fund is yet to test a severe bear market like that of 2008.

Though the fund has lacked in performance in 2016 both behind its benchmark and category.

This fund is a good fund to start investing for medium to long-term horizon.

  • Reliance Tax Saver Fund

This scheme is one of the best in the ELSS segment and has been since its inception.

The fund has beaten all of its peers and given returns of 23.63% in the last 5 years which is amazing and 13.82% in the last 10 years which shows the consistency in the fund’s performance.

This scheme has provided highest returns for the 5 yr and 10 yr time frame.

The AUM for this fund has risen close to 10K cr which shows investors’ confidence in this fund.

It has consistently performed over various market cycles and did very well during the bear phases of 2008, 2011 and 2015 where the fund lost less than its benchmark and category.

This fund is highly regarded by SIP investors and one can start investing in them for medium to long-term horizon.

Also Read: Best Equity Savings Funds to Invest in 2018

  • DSP BlackRock Tax Saver Fund

This scheme is also one of the best in the ELSS segment and has been since its inception.

The fund has beaten some of its peers and given returns of 21.47% in the last 5 years which is quite amazing and 11.95% in the last 10 years which shows the consistency of the fund.

The AUM for this fund has risen close to 3.5K cr which shows investors’ confidence in this fund.

It has consistently performed over various market cycles and did very well during the bear phases of 2008, 2011 and 2015 where the fund contained losses compared to its benchmark and even gave profits in 2015.

Even though the fund has lacked in returns in the last 1 year both behind its benchmark and category, the fund has picked up its pace in the last 5 years and is consistently outperforming its benchmark and category.

This fund is one of the better funds to start investing for medium to long-term horizon.

  • Tata India Tax Savings Fund

This scheme is also one of the best in the ELSS segment and has been since its inception.

The fund has beaten some of its peers and given returns of 21.65% in the last 5 years which is quite amazing and 11.11% in the last 10 years which shows the consistency of the fund.

The AUM for this fund has risen close to 1K cr which shows investors’ confidence in this fund.

It has consistently performed over various market cycles and did very well during the bear phases of 2011 and 2015 where the fund contained losses compared to its benchmark and even gave profits in 2015 but did lose a tad more than the benchmark in 2008.

The fund has picked up its pace from 2014 and is consistently performing well compared to its benchmark.

This fund is also one of the good funds to start investing for medium to long-term horizon.

Conclusion:

There are many other funds also available but these funds are one of the best funds in the market right now for investment purposes for medium to long-term horizon.

Friends, please share the article if it’s of help to you.

Also, comment below if you are planning to invest in any of these funds.

Be First to Comment

    Leave a Reply

    Your email address will not be published. Required fields are marked *