Best Tax Saving Mutual Funds to invest

A Tax saving mutual fund, also called Equity Linked Savings Scheme (ELSS), is a mutual fund scheme that invests in equity & equity related securities.
Save ₹46,800 in Taxes with Tax Saving Fund

Average returns around 15% in last 3 years, better than Fixed Deposit or PPF
Has a lock in period of 3 years only
Invest upto Rs 1,50,000 in these funds as per Section 80C

Benefits of Investing in Best Tax Saving Mutual Funds

Equity Linked Savings Scheme (ELSS) is a diversified equity mutual fund. It invests your money in equity shares of companies across market capitalization i.e. large-cap/mid-cap/small-cap. Such diversification helps to wade through turbulent markets and keep your returns in line with your expectations.

Comparison with other Tax Saving Investments

There are several other savings schemes that helps in wealth creation like FD, PPF and NSC to name a few. But the returns from these schemes are taxable. This is where ELSS (Tax Saving Mutual Funds) stands out with its dual-benefit – its returns are generally higher and tax-free. This coupled with a mere lock-in period of 3 years is all the more reason for you to invest in ELSS ( Tax Saving Mutual Funds ) now. Here is a quick glimpse at how ELSS is superior to other commonly used tax-saving investments :-