Equity-Linked Savings Scheme (ELSS) is an equity mutual fund investment that invests at least 80 per cent of its assets in equity and equity-related instruments. ELSS can be open-ended or close ended. 

Tax Deduction under Section 80C:

• This is the main tax benefit of ELSS. Up to ₹1.5 lakh of your investment in ELSS can be deducted from your taxable income under Section 80C of the Income Tax Act.
• Think of it as reducing your taxable income by the amount you invest in ELSS. This translates to a lower tax bill.

Lock-in Period:

• There’s a catch – you can’t withdraw your ELSS investment for at least 3 years. This is called the lock-in period.
• It’s important to consider your investment horizon (how long you plan to invest) before choosing ELSS. It’s best suited for long-term financial goals.

Potential for Higher Returns:

ELSS invests in the stock market, which carries risk but also has the potential for higher returns compared to other tax-saving options like PPF or FDs.

Lets Look at some of the best ELSS Funds 

HDFC ELSS tax saver fund Regular Growth : 

The fund was launched in 1996 , a very old fund in the category. The fund is 4 star rated . The fund is managing a decent fund size of 15,934 cr. An expense ratio of 1.71. Fund is decent PE of 20.97.

Franklin India ELSS tax saver fund: 

The fund was launched in the year 1999, Rated at 4 stars. The fund size is very small at 6,832.69 cr. Expense ratio of the fund is 1.8. A great PE of 18.65. 

Quant ELSS tax saver fund : 

The fund was launched in the year 2000, The fund is CRISIL rated 3 stars, the fund is decent size now 10,979 cr. The expense ratio of 1.72.  The PE of the fund is 26.52.

Kotak ELSS Tax Saver Fund – Growth: 

The fund was launched in 2005, rated as 3 star by CRISIL, fund is small size of 6148.14cr, the expense ratio for the fund is 1.76. The PE of the fund is 21.39.

HSBC ELSS Tax Saver  Fund (G):

The fund was launched in the year 2006, The fund is 4 star rated as per CRISIL. Very small fund size of 2.47. HIgh PE of 25.422 and expense ratio of 2.47.

SBI long term equity Regular Growth : 

The fund was launched in the year 2007, it is currently rated 5 star. Fund size of 27,559.31 cr. Expense ratio of 1.6 . Very low PE of 16.72.

DSP ELSS tax saver fund:

The fund was launched in 2007. It is currently rated as 4 star by CRISIL. Decent fund size of 16,841 cr. Expense ratio of 1.64. PE of 17.90.

JM ELSS Tax Saver Fund (G): 

The fund was launched in the year 2008, Currency CRISIL rated 5. Very very small size of 180 cr. High expense ratio of 2.39. PE of 26.30.

Bank of India ELSS Tax saver fund regular (G):

The fund was launched in 2009. Crisil has rated the fund as 3 star. Small fund size of 1435.9 Cr. Expense ratio of the fund is 1.96. PE of the fund is 18.32.

Axis ELSS Tax saver fund (G) : 

The fund  was launched in the year 2009, Currently rated as 1 star by CRISIL. The fund has one of the largest fund sizes of 26,533.13 cr. With a 1.52 expense ratio. The PE of the fund is 27.75.

Motilal Oswal ELSS tax saver fund (G) :

The fund was launched in 2015, it is rated 5 star by CRISIL. The fund size is not too large at 4,073.73 cr. The PE of the fund is 47.17. Expense ratio is 1.83. 

Parag Parikh ELSS Tax Saver Fund (G) : 

The fund was launched in the year 2019. Currently rated as 2 star. The size of the fund is not big at 4,273 cr. The PE of the fund is 16. And the Expense ratio is 1.72.

Trailing Returns :

1 year trailing 

1st quartile : 41.25- 51 : Motilal Oswal ELSS Tax Saver Fund Reg(G)

2rd quartile : 31.5- 41.25 : SBI Long Term Equity Fund Reg (G), Franklin India ELSS Tax Saver Fund (G), HDFC ELSS Tax saver Reg (G),DSP ELSS Tax Saver Fund Reg Fund (G), Bank of India ELSS Tax Saver Fund Reg (G), Bank of India ELSS Tax Saver Fund Reg (G), JM ELSS Tax Saver Fund (G), HSBC ELSS Tax Saver  Fund (G)

3rd quartile : 21.75- 31.5% : Quant ELSS Tax Saver Fund (G), Parag Parikh ELSS Tax Saver Fund (G), Kotak ELSS Tax Saver Fund (G), Axis ELSS tax saver fund

4th quartile : 12 – 21.75% : 

3 years trailing return 

1st quartile : 20.5 – 25%:SBI Long Term Equity Fund Reg (G),Motilal Oswal ELSS Tax Saver Fund Reg(G), HDFC ELSS Tax saver Reg (G)

2rd quartile : 16- 20.5% : Quant ELSS Tax Saver Fund (G), Parag Parikh ELSS Tax Saver Fund (G), Franklin India ELSS Tax Saver Fund (G), Kotak ELSS Tax Saver Fund (G), DSP ELSS Tax Saver Fund Reg Fund (G), Bank of India ELSS Tax Saver Fund Reg (G), JM ELSS Tax Saver Fund (G), HSBC ELSS Tax Saver  Fund (G)

3rd quartile : 11.5- 16%: none

4th quartile :7- 11.5 % :Axis ELSS tax saver fund

5 years trailing returns 

1st quartile : 25.5- 30%: Quant ELSS Tax Saver Fund (G), 

2rd quartile : 21- 25.5%:Parag Parikh ELSS Tax Saver Fund (G), SBI Long Term Equity Fund Reg (G), Motilal Oswal ELSS Tax Saver Fund Reg(G), DSP ELSS Tax Saver Fund Reg Fund (G), Bank of India ELSS Tax Saver Fund Reg (G), JM ELSS Tax Saver Fund (G)

3rd quartile : 16.5 – 21%:Franklin India ELSS Tax Saver Fund (G), HDFC ELSS Tax saver Reg (G), Kotak ELSS Tax Saver Fund (G),HSBC ELSS Tax Saver  Fund (G)

4th quartile : 12-16.5%: Axis ELSS tax saver fund

7 Years Trailing returns : 

1st Quartile : 18.75-22% :Quant ELSS Tax Saver Fund (G)

2nd Quartile : 15.5-18.75%: SBI Long Term Equity Fund Reg (G), Motilal Oswal ELSS Tax Saver Fund Reg(G), DSP ELSS Tax Saver Fund Reg Fund (G), Bank of India ELSS Tax Saver Fund Reg (G), DSP ELSS Tax Saver Fund Reg Fund (G), Bank of India ELSS Tax Saver Fund Reg (G), Bank of India ELSS Tax Saver Fund Reg (G), JM ELSS Tax Saver Fund (G)

3rd Quartile : 12.25-15.5%: Franklin India ELSS Tax Saver Fund (G), HDFC ELSS Tax saver Reg (G), Kotak ELSS Tax Saver Fund (G), HSBC ELSS Tax Saver  Fund (G)

4th Quartile : 9- 12.25%:Axis ELSS tax saver fund

Parag Parikh ELSS Tax Saver Fund (G)

10  years trailing returns 

1st quartile : 18.25-21%: Quant ELSS Tax Saver Fund (G)

2rd quartile : 15.5-18.25% , DSP ELSS Tax Saver Fund Reg Fund (G), Bank of India ELSS Tax Saver Fund Reg (G)

3rth quartile : 12.75- 15.5%:SBI Long Term Equity Fund Reg (G), Franklin India ELSS Tax Saver Fund (G), Kotak ELSS Tax Saver Fund (G), JM ELSS Tax Saver Fund (G), HSBC ELSS Tax Saver  Fund (G), JM ELSS Tax Saver Fund (G)

4th quartile :10- 12.75%: HDFC ELSS Tax saver Reg (G), Axis ELSS tax saver fund

Parag Parikh ELSS Tax Saver Fund (G), Motilal Oswal ELSS Tax Saver Fund Reg(G) were not launched 

15  years trailing returns 

1st quartile : 14.75-16%:Quant ELSS Tax Saver Fund (G), Franklin India ELSS Tax Saver Fund (G), DSP ELSS Tax Saver Fund Reg Fund (G)

2rd quartile : 13.5-14.75%:SBI Long Term Equity Fund Reg (G), HDFC ELSS Tax saver Reg (G), Kotak ELSS Tax Saver Fund (G), Bank of India ELSS Tax Saver Fund Reg (G), HSBC ELSS Tax Saver  Fund (G), JM ELSS Tax Saver Fund (G)

3rd quartile : 12.25-13.5%: None

4th quartile :11-12.25%: None

Parag Parikh ELSS Tax Saver Fund (G) , Motilal Oswal ELSS Tax Saver Fund Reg(G) and Axis ELSS tax saver fund.

Rolling returns 

>20%, Is the returns that we look forward to 

89% Consistency : Parag Parikh ELSS Tax Saver Fund (G) steal the show with consistency of 89.66 % above 20% returns but the duration is just 6 years 

40% and above : Quant ELSS Tax Saver Fund (G) close 42% of time delivered this result 

36-40% consistency :  Bandhan ELSS Tax saver Fund Reg (G), DSP ELSS Tax Saver Fund Reg Fund (G)

30-36% of Consistency  : Bank of India ELSS Tax Saver Fund Reg (G), Franklin India ELSS Tax Saver Fund (G) 

Below 30% of consistency : Axis ELSS Tax Saver Fund (G), HDFC ELSS Tax saver Reg (G), HSBC ELSS Tax Saver Fund (G), JM ELSS Tax Saver Fund (G), Motilal Oswal ELSS Tax Saver Fund Reg(G), SBI Long Term Equity Fund Reg (G), Kotak ELSS Tax Saver Fund (G)

>15% ,  Is the returns that we look forward to 

100% Parag Parikh ELSS Tax Saver Fund (G) delivered 3 year rolling returns above 15% 

55-60% times consistency  : Bandhan ELSS Tax saver Fund Reg (G), DSP ELSS Tax Saver Fund Reg Fund (G), Quant ELSS Tax Saver Fund (G)

50-55% time consistency : Bank of India ELSS Tax Saver Fund Reg (G), JM ELSS Tax Saver Fund (G), Motilal Oswal ELSS Tax Saver Fund Reg(G), Kotak ELSS Tax Saver Fund (G), 

< 50% of consistency Axis ELSS Tax Saver Fund (G), HDFC ELSS Tax saver Reg (G), HSBC ELSS Tax Saver Fund (G), SBI Long Term Equity Fund Reg (G), Franklin India ELSS Tax Saver Fund (G)

Greater Than 12% is the return we look for, 

100% Parag Parikh ELSS Tax Saver Fund (G) delivered 3 year rolling returns above 15%

68-70% consistency range : Bandhan ELSS Tax saver Fund Reg (G), DSP ELSS Tax Saver Fund Reg Fund (G), JM ELSS Tax Saver Fund (G), Motilal Oswal ELSS Tax Saver Fund Reg(G)

65-68% Consistency : Axis ELSS Tax Saver Fund (G), Bank of India ELSS Tax Saver Fund Reg (G), Quant ELSS Tax Saver Fund (G)

<65% of consistency : HDFC ELSS Tax saver Reg (G), HSBC ELSS Tax Saver Fund (G), SBI Long Term Equity Fund Reg (G), Kotak ELSS Tax Saver Fund (G), Franklin India ELSS Tax Saver Fund (G)

Vs Benchmark 

1 year trailing 

1st quartile : 41.25- 51 : Motilal Oswal ELSS Tax Saver Fund Reg(G)

2rd quartile : 31.5- 41.25 : SBI Long Term Equity Fund Reg (G), Franklin India ELSS Tax Saver Fund (G), HDFC ELSS Tax saver Reg (G),DSP ELSS Tax Saver Fund Reg Fund (G), Bank of India ELSS Tax Saver Fund Reg (G), Bank of India ELSS Tax Saver Fund Reg (G), JM ELSS Tax Saver Fund (G), HSBC ELSS Tax Saver  Fund (G)

3rd quartile : 21.75- 31.5% : Parag Parikh ELSS Tax Saver Fund (G), Kotak ELSS Tax Saver Fund (G), Axis ELSS tax saver fund

No able to beat the index  : Quant ELSS Tax Saver Fund (G)

3 years trailing return 

1st quartile : 20.5 – 25%:SBI Long Term Equity Fund Reg (G),Motilal Oswal ELSS Tax Saver Fund Reg(G), HDFC ELSS Tax saver Reg (G)

2rd quartile : 16- 20.5% : Quant ELSS Tax Saver Fund (G), Parag Parikh ELSS Tax Saver Fund (G), Franklin India ELSS Tax Saver Fund (G), Kotak ELSS Tax Saver Fund (G), DSP ELSS Tax Saver Fund Reg Fund (G), Bank of India ELSS Tax Saver Fund Reg (G), JM ELSS Tax Saver Fund (G), HSBC ELSS Tax Saver  Fund (G)

Could not beat the index Axis ELSS tax saver fund

5 years trailing returns 

1st quartile : 25.5- 30%: Quant ELSS Tax Saver Fund (G), 

2rd quartile : 21- 25.5%:Parag Parikh ELSS Tax Saver Fund (G), SBI Long Term Equity Fund Reg (G), Motilal Oswal ELSS Tax Saver Fund Reg(G), DSP ELSS Tax Saver Fund Reg Fund (G), Bank of India ELSS Tax Saver Fund Reg (G), JM ELSS Tax Saver Fund (G)

3rd quartile : 16.5 – 21%:Franklin India ELSS Tax Saver Fund (G), HDFC ELSS Tax saver Reg (G), Kotak ELSS Tax Saver Fund (G),HSBC ELSS Tax Saver  Fund (G)

Axis ELSS tax saver fund could not beat the index

10  years trailing returns 

1st quartile : 18.25-21%: Quant ELSS Tax Saver Fund (G)

2rd quartile : 15.5-18.25% , DSP ELSS Tax Saver Fund Reg Fund (G), Bank of India ELSS Tax Saver Fund Reg (G)

3rd quartile : 12.75- 15.5%:SBI Long Term Equity Fund Reg (G), Franklin India ELSS Tax Saver Fund (G), Kotak ELSS Tax Saver Fund (G), JM ELSS Tax Saver Fund (G), HSBC ELSS Tax Saver  Fund (G), JM ELSS Tax Saver Fund (G)

Could not beat the index HDFC ELSS Tax saver Reg (G), Axis ELSS tax saver fund

Parag Parikh ELSS Tax Saver Fund (G), Motilal Oswal ELSS Tax Saver Fund Reg(G) were not launched.

Ratios : 

Fund managers Longevity  : 

Quant ELSS Tax Saver Fund (G) : 

The fund is being managed by 2 fund managers. Mr Vasav has a total industry experience of about 8 years in industry and he has been managing this fund for the last 5 years. He seems to be managing almost each and every fund of the AMC. Mr Ankit has industry experience of about 14 years , he has been managing this strategy for the last 5 years. He also seems to be managing each and every other fund in the fund house.

Parag Parikh ELSS Tax Saver Fund (G): 

The fund is being managed by 5 fund managers. Mr Rajeev thakar, CIO of the fund house, managing the fund since inception. Mr Raj Mehta is senior fund manager with experience of about 13 years in the industry and managing this fund since inception . Mr Raunak Onkar , he is research head , he has experience of about 15 years with the industry and has been with the fund house since then. He has also managed this fund since inception. Mr Rukun Taranchandani has 11 years of industry experience and has been managing this fund for the last 3 years he is also managing 4 funds apart from this. Ms Mansi Kariya has been with the fund house for the last 7  years but as fund manager she has just joined since last 1 year. 

SBI Long Term Equity Fund Reg (G):

The fund is being managed by the 1 fund manager Mr Dinesh Balachandran , He has an industry experience of about 24 years and managing the fund for about 8 years in all. The fund manager is managing about 5 funds along with this fund. 

Motilal Oswal ELSS Tax Saver Fund Reg(G) : 

The fund is currently being managed by 4 fund managers. But the team is new to the fund. Mr Rakesh Shety who has been the longest in the strategy that is 2 years, has industry experience of 14 years. Seems like he is part of almost all the funds in equity as of now around funds he is managing. Mr Niket Shah , he is the CIO of the Motilal oswal AMC. He has industry experience of about 14 years and is managing this fund for about 1 year now. He is mamamagic close to 9 funds at the fund house. He has been Motilal for most of his career. Mr Ajay Khandelwal is industry veteran with 20 years of experience but he’s been AMC for just 1 year and is managing the fund for the last 1 year only. He is again an industry veteran with almost 18 years of industry experience , he has been with AMC for about 6 years now. IN the current strategy he has just started .He is managing about 9 funds at the fund house. 

Franklin India ELSS Tax Saver Fund (G) : 

The fund is being managed by 3 fund managers. Mr R Janakiraman, Has 29 years of industry experience and is a veteran in franklin , he is the vice president at Franklin templeton investment. He has been managing the fund for about 9 years now. He is managing a total of 8 funds at the AMC. Mr Rajasa kakulavarapu is an industry veteran of about 17 years but he is a very recent addition to the fund. He has been managing the fund for the last 1 year. He is managing close to 11 funds at the fund house. 

 HDFC ELSS Tax saver Reg (G)

The fund is currently being managed by 2 fund managers. Ms Roshi Jain, she is a very senior person and has experience of about 19 years, earlier with Franklin templeton , she is with HDFC for about 3 years now. And since then she has been managing the fund . She is managing 3 funds at the AMC. Mr Dhruv Mucchal has an experience of about 14 years in industry with various organizations , he has been with HDFC 5 years now. He has been managing this fund for 1 year now. 

Kotak ELSS Tax Saver Fund (G)

The fund is being managed by 1 fund manager. The CIO of the kotak AMC. He has 23 years in the industry. He had been with AMC for the last 13 years now. He is managing about 6 funds at the AMC. 

DSP ELSS Tax Saver Fund Reg Fund (G)

The fund is being managed by 1 fund manager, Mr Rohit Singhania, Co-head equities at the AMC. He has industry experience of more than 21 years. He has been with DSP for about 19 years. This fund he has been managing for about 9 years now. The fund managers have left the fund. 

Bank of India ELSS Tax Saver Fund Reg (G)

The fund is being managed by only fund manager Mr Alok Singh, he is the CIO of the AMC, he has experience of 19 years in the industry and 12 years in with the AMC . With this fund he has been managing it for 3 years now. Apart from this fund he is managing about 5 funds in the AMC.

JM ELSS Tax Saver Fund (G)

The fund is being managed by 4 fund managers. Mr Chaitanya Choksi, has experience of about 22 years in the industry , he has been with AMC for 16 years now. He has been managing this fund for about 10 years. He is managing 10 funds. Mr Asit Bhandarkar, has 23 years in the industry, he has been AMC for about 18 years. And managing the fund for about 3 years. 10 funds he has been managing. Mr Satish Ramathan, he is the CIO of the JM AMC, he has been 4 years, he has 32 experience in industry. He has been managing the fund for just a few months. He has been managing 10 funds in the AMC. Ms Ruchi Ferdoz, she has industry experience of about 8 years , and with AMC she has been 4 years. And has joined the fund just now as a manager. She is managing about 13-14 funds of a lot of debt funds. 

HSBC ELSS Tax Saver  Fund (G)

The fund is currently being managed by 3 fund managers . Mr Sonal Gupta, he is an industry veteran of 18 years, he has been with the fund for about 2 years now, and has been managing the fund since then. He is managing close to 20 funds at the AMC. Mr Gautam Bhupal, is SVP at AMC and has industry experience of about 21 years and has been with AMC for about 16 years. He has been managing this fund for about 2 years and also managing about 11 funds at the AMC . Mr Abhishek Gupta, he has industry experience of about 20 years, but joined AMC about 11 months ago and has been part of this fund since then. He is managing about 6 funds.

Axis ELSS tax saver fund (G) : 

The fund is being managed by 2 fund managers. Mr Ashish Naik, He has industry experience of 17 years, of which he has been with fund house for 15 years. In this strategy he has been for 1 year, he is managing close to 15 funds now. Mr Shreyash Devalkar, the head of equities. has 20 years of industry experience, of which 8 years have been spent at Axis AMC.He has been managing the fund for the last 1 year. He is managing about 10 funds at the AMC.

Portfolio : 

Conclusion : 

This fund category is a prime example of a behemoth fund falling from its peak. Which proves the point: just chasing the best fund may not be the best choice. Also you need an advisor who can help you find the best fund.

As always please discuss with your wealth manager or advisor the funds listed and find the best suited fund. As the funds also go through cycles as they invest into stock market and have a strategy in place.

You can reach us to help you design the bets fund portfolio , so that you get best results according to your need and assessment.(  you can reach us : https://wa.me/message/LC5W5ZNTPSJ5L1)

Do look into your asset allocation , if you not set the same read our blog on the same. ( https://wealthinn.inasset-allocation-guideline-for-investment/). It is very important that you set you asset allocation before investing into any fund.