Are you looking for Tax Saving ELSS Mutual Funds for Investment in 2019? As the financial year, 2018-19 is about to end, you must be planning for investing in tax saving instruments. ELSS (Equity Linked Saving Scheme) is one of the most popular tax saving investment option.
What is ELSS?
ELLS is Equity Linked Saving Scheme. It is a tax saving instrument. You can invest your money in ELSS and get tax benefits under 80C of the Income Tax act. The main purpose of giving tax benefits to ELSS is to increase participation of common man in the equity market.
ELSS gives very good returns to the investor compared to traditional investment instruments like fixed deposit, PPF, NSC etc. ELSS comes with a lock-in period of 3 years. The benefit associated with ELSS Tax Saving Mutual Funds are given below.
Also Read – Top 11 Best Mutual Funds Schemes to Invest
Why you should opt for ELSS for tax saving?
- Your investments in ELSS are eligible for a tax deduction of up to Rs 1.5 lakh from your gross total income under section 80C of the Income Tax Act.
- The lock-in period for ELSS is lowest 3 years compared to any other investment instruments.
- ELSS is one of the best ways to enter into equity market and ideal for first-time investors to the stock market.
- The returns offered by Tax saving mutual funds are higher compared to traditional investment options.
5 Best ELSS Mutual Funds for Investment 2019
#1. Aditya Birla Sun Life Tax Relief 96 – Direct – Growth
Aditya Birla Sun Life Tax Relief 96 Direct – Growth plan is first in the list of Top 5 Best ELSS Mutual Funds for Investment. This fund invests 80% of its assets in the equity and balance in debt and money market instruments. This fund is managed by the experienced fund manager. This fund has given very good returns in the past.
#2. Invesco India Tax Plan – Direct – Growth
Invesco India Tax Plan is next in the list of Top 5 Best ELSS Mutual Funds for Investment. Invesco India has consistently outperformed its benchmark S&P index since launch. This fund invests across market capitalization sectors utilizing a bottom-up approach. It is five stars rated fund. This fund has given very good returns in both bull and bear markets. It is a good tax saving fund for the conservative tax saver investor.
#3. Axis Long Term Equity Fund – Direct – Growth
Axis Long Term Equity Fund – Direct – Growth is next in the list of best ELSS for investment. Axis Long Term Equity Fund Invests in companies with strong growth & sustainable business model. It is five star rated fund. The past performance history of this fund is very good. It is a good multi-cap ELSS mutual fund.
#4. ICICI Prudential Long Term Equity Fund (Tax Saving) – Direct
ICICI Prudential Long Term Equity Fund is one of the very good tax saving fund. The expense ratio of this fund is very low. It is three star rated fund. This fund has given very good return to the investor in the past. This fund is managed by an experience fund manager. You can invest in this fund for long term perspective.
#5. L&T Tax Advantage Fund – Direct – Growth
L&T Tax Advantage Fund – Direct – Growth fund is one of the best tax saving equity investment. It is four star rated fund. This fund is comparatively new but in last five years this fund has given very good returns. The expense ratio of this fund is very low. You can invest in this fund for medium to long term perspective.
Points to consider before investing in ELSS
- Always invest in mutual funds via SIP route.
- ELSS comes with 3 years lock-in period. This means it will give you very low liquidity.
- Select Direct scheme of Investment.
- Consider your investment objective, horizon and the risk profile before making an investment in ELSS.
- You can adopt an online method of investing in tax saving mutual fund.
- Make sure to select the best ELSS mutual funds for the investment.
Over to You –
Do you invest in Tax Saving Mutual Funds?
Do share your views in the comment section given below.