Top 10 Best ELSS Tax Saving Mutual Funds To Invest 2017-18 in SIP Way

By | February 12, 2017

What are the best tax saving mutual fund schemes in India 2017-18? If you are looking to invest in the tax saving mutual funds, you need to perform quite some research to get to the kind that suits your requirement. As the interest rates for fixed deposit schemes or other small deposit schemes has been reduced recently after demonetization, it is clear that one can’t make good money investing in such low interest rate products anymore. So, gradually people are shifting toward ELSS or Equity Linked Savings Scheme which are nothing but mutual funds only.

Summary of ELSS/Equity Taxing Saving Mutual Funds/MF, Equity Linked Savings Scheme Mutual Funds/MF

In this article I will tell you why investing in ELSS Mutual Funds is the best alternative to FD schemes. Not only that how one can easily save income tax and build wealth on long run. In last couple of years, the popularity of ELSS Mutual Funds has been increased like anything. In fact if you have followed the Union Budget 2017-18, then you would have noticed that Govt is trying to encourage people to invest more in stock market. But, investing directly in equity is not that easy, so better to choose with the ELSS Mutual Fund way only.

Top 3 Tax Saver SIP Mutual Funds 2017 In My Portfolio & How Much Return I got in last 1 year

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I have started investing in mutual funds through FundsIndia last year. Or you can say its been more than 1 year I have started my mutual fund investment journey. Although I have invested in couple of equity mutual funds, besides these ELSS schemes. But here I will only talk about specific to the funds related to income tax saving.

SchemeInvestment Cost (Rs.)Latest Value (Rs.)Returns
Axis LT Equity Fund(G)75,000.0083,346.1014.57%

Initially I have invested Rs 50,000 in one go and then started a SIP of Rs 2500 / month. I can see that its giving a very good return on investment in just one year. Although its not good to make any perception in short term as my target is to continue the same for long run.

Besides this Axis LT Equity Fund(G), this year I will be investing further on 2 more top rated ELSS funds and they are ICICI Prudential Long Term Equity Fund (Tax Saving) – Growth & Franklin India Taxshield – Growth.


What is tax saving mutual funds? What is ELSS in mutual fund?

Planning your taxes is a primary sector when it comes to financial planning. Sec 80C act of the Income Tax permits you to claim for deductions that are made from your taxable income by investing in individual investments.

Why should you invest in ELSS MF or Tax saving mutual funds 2017?

The ELSS funds invest a major portion of their portfolio in the equities. This equity exposure could state higher risks, but the gains are long term. These some advantages for investing in them:

  • Compared to other funding options, ELSS funds have a lesser lock-in period to range only three years
  • With an SIP, you can invest at multiple levels in the market yet feel risk-free
  • These funds don’t have a maturity date, and you can find inflation-beating returns. 
  • All the top funds are having more than 6+ years in the market and are managing by expert fund managers. On top of that people got huge benefit investing on those top recommended funds 2017 in last couple of years.

List of 10 best tax saving mutual funds 2017

So, here is the list of Best ELSS mutual funds which you will also find in the list of may experts. But you can concentrate with the Top tax saving MFs which I have invested as they are really good so far.

Reliance Tax Saver Fund [G]

Reliance Group of Industries is known to have the mutual funds and shares that perform at top ranks in the day in stock markets as well in the banks. The main aim of buying this mutual fund is to generate a long-term capital in equity and all other equity related instruments. 

DSP BlackRock Tax Saver Fund [G]

DSP BlackRock Tax Saver Fund is one of the top performing mutual funds in the market. You can buy this mutual fund if you are looking forward to a long term appreciation and earning more than the investment.  It is an open-ended equity scheme. Minimum investment in this mutual fund is INR 500 and is considered a plan of good returns.

Axis Long Term Equity Fund [G]

As the name suggests, the fund is for the investors looking for a long-term money return appreciation. But, this fund is among the standard performing categories since a quarter. The fund was first started in the year 2000 and is an open ended equity fund.

Birla Sun Life Tax Saver 96 [G]

Birla Sun Life Tax Saver 96 is an open-ended Equity Linked Saving Schemes. It has a lock-in period of 3 years which means that the scheme is for the investors who are looking for a long term appreciation and tax saving.

L&T Tax Saver Fund [G]

L&T Tax Saver Fund aims at giving a rapid growth to the investment of the clients. It is an open-ended equity linked saving scheme which is basically for long-term investors. The tax saver mutual fund by L&T also helps in tax rebate for the investors. Minimum investment for the mutual fund is INR 500 and is under the category of NIFTY 50.

Invesco India Tax Plan [G]

Invesco India Tax Plan is categorized as a good performing asset for the investors looking for a long-term return, and the investors get immense tax rebates over buying this tax saving plan. Minimum investment required for buying this mutual fund is INR 500, and later, INR 1 can be paid to continue the scheme.

Birla Sun Life Tax Plan [G]

Buying this mutual fund, you get a significant opportunity to increase the returns and gain tax benefits at the same time. Here, the minimum investment is INR 1000. INR 1 Lakh can be gained as deductions on taxes by the qualified investors.

Franklin India Taxshield Fund [G]

This fund is for the investors looking for tax benefits and investing for a longer period to gain a good amount of growth. It is an open-ended equity linked savings scheme that allocates at least 80% to the equities. The investors can be benefitted by a tax of almost 1.5 Lac in their annual tax payment.

ICICI Prudential Long Term Equity Fund [G]

This fund is in the third rank since the past quarter and considered to be a good performing fund by the top financial advisers’ company. It is an open-ended equity linked saving scheme. Minimum investment required for the mutual fund is INR 500 and the additional minimum investment each year has to be paid according to the company policy.

Sundaram Tax Saver Fund [G]

It has a three year of locking period which means that this mutual fund is for the investors looking for a long-term appreciation and continuous tax benefits. The tax comes under the category of Multi-cap, and an investor can invest up to 1.5 Lac in the mutual fund. The top financial companies have been praising this mutual fund since its conception.

Income Tax Benefits on Investing through ELSS Mutual Funds 2017

Here are the common questions among people Is return on ELSS taxable? Is mutual funds tax free? What are the taxation rules of mutual fund investments in India? Well, the mutual fund taxation rules 2017-18 has been changed a little after the union budget 2017. But for ELSS, you can declare up to Rs 1.5 lakh deposited through ELSS under section 80C. The best part of ELSS funds is that the maturity is also income tax exempted. The minimum lock-in period for ELSS funds are only 3 years which is less compared to others. And there is no capital gain tax also applied.

Conclusion on Top 10 ELSS Tax Saving Mutual Funds 2017

Your investment needs to be analyzed according to the requirement and its future. Choosing the right also involves picking on with a longer future, which can let you be more beneficial in the sector. ELSS mutual funds are good for them who are looking for best income tax saving options in India 2017. But one think you should remember that you have to be ready to take some risk, as mutual fund investments are subject to market risk. You can also share, in which Best tax savings ELSS mutual fund you have invested to save taxes this year?

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