Best ELSS Funds to Invest for Tax Saving in 2020?

Right now, many tax-payers are scrambling to find out the right tax- saving instrument that can bring down their tax liability. However, individuals with high- income tax bracket tend to make erratic financial choices that may lower down tax initially, but burn a hole in their pocket later on. It is where ELSS gives you an edge.  The lock-in period of these funds is 3 years.

In this article, we have listed the best ELSS funds that can help you in the process of wealth creation.  

Best ELSS funds to invest in 2020

Motilal Oswal Long Term Equity Fund

It is an open-ended tax- saving fund which comes with a mandatory lock-in period of 3 years. In this scheme, the investor invests in equity and related instruments across different sectors and industries. The fund aims help the investor in wealth generation apart from offering tax advantage.  

Benefits?

There are several benefits of investing in this fund, for example,

• It is the best ELSS fund that can help you to save taxes up-to Rs 46,800 under section 80C.
• This fund comes with the shortest lock-in period that helps in easy withdrawal.
• This tax-saving fund can offer you with exceptionally high returns
• The returns since its launch is 8.10%

UTI Long Term Equity Fund

This is by far counted among the best tax-saving funds. In this the fund manager has invested 50.83% funds in large-cap stocks,  24.5% in mid-cap stocks and 11.42% in small- cap stocks. This fund is suitable for the investors who are looking forward to additional returns apart from income tax saving.

Benefits?

• This mutual fund has offered 12.96% returns since its launch, which is higher than its peers.
• This mutual fund has invested majorly in stocks like Infosys, Bharti Airtel, Gujarat Gas, Muthoot Finance, Jubliant Foodworks, to name a few.
• This fund is ideal for aggressive investors with high- risk appetite.
• With these funds, investors can invest to achieve long-term financial goals like children’s education, retirement planning, etc.

Axis Long Term Equity Fund

Among different ELSS schemes, it is rated as the best performer scheme. The scheme has scored high in terms of returns, especially for long term-period. In the past five years and 10 year, the scheme has given returns of 10.5% and 17.5%. Recently, it has introduced new stocks in its portfolio Bharti Airtel, Eicher motors, Larsen and Turbo, ICICI Bank and Nestle India.

Benefits?

• The fund has offered 14.66% returns since launch, which is higher than UTI ELSS fund.
• This fund is suitable for investors with moderate risk tolerance power
• It is a diversified fund that invests in selected lathe cap and mid- cap funds.

Aditya Birla Sun Life Tax Relief 96

The objective of this scheme is wealth generation by investing the money of investor in 90% equity and 10% debt market. It is a multi-cap fund where the fund manager has complete freedom to invest money in companies of different sizes, depending upon where it can achieve the goal. The latest NAV recorded is Rs 619.15

Benefits?

• This fund is suitable for the investor who plans to invest for five years or above
• The returns since its launch is recorded as 22.44%

The tax- payer can select from growth option ELSS and dividend option ELSS and dividend reinvestment option. With the tax-paying around the corner, consider investing in these tax- saving instrument to maximize the returns.