Are you looking for ways to reduce your taxes? We often tend to buy random investment products just to save some tax at this time of the year, but this is not an effective approach. Instead, you need to focus on holistic tax planning rather than investing blindly. However, if you are looking for a tax-saving product such as Equity-Linked Savings Schemes (ELSS), we are here to help you. ELSS can help you to get a tax deduction of up to Rs 1,50,000 under Section 80C in the old tax regime. What exactly are ELSS mutual funds? What are the top ELSS funds you can buy right now? Read on to find out,
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What are ELSS Funds?
ELSS, or Equity Linked Saving Schemes, are a category of mutual funds that predominantly invest in equity and equity-linked instruments, with at least 65% of the total investment allocated to these assets. ELSS funds offer two key advantages: the potential for capital appreciation and the opportunity to invest in a diversified equity portfolio.
Unlike other mutual funds, ELSS funds have a lock-in period of three years.
Top ELSS mutual funds to invest in February 2025
Choosing the best mutual funds depends on various factors. At 1 Finance we believe in having peace of mind in every investment that you make. We have developed a Mutual Fund Scoring and Ranking system that helps you to compare mutual funds and make informed investment decisions.
Based on 1 Finance Mutual Fund Scoring and Ranking system, here are the top ELSS mutual funds you can invest in February, 2025.
List of the Top 5 ELSS Mutual Funds in February 2025
1. DSP ELSS Tax Saver Fund
The DSP ELSS fund ranks first with a score of 99 as per 1 Finance Mutual Fund Scoring and Ranking system, having consistently outperformed the benchmark and low downside in the event of a market crash.
Key information of the DSP ELSS tax saver fund:
AUM: ₹ 17,771 crore
Expense ratio: 0.74%
5Y CAGR: 20.11%
2. JM ELSS Tax Saver Fund
The JM ELSS fund ranks second with a score of 95 as per 1 Finance Mutual Fund Scoring and Ranking system, having consistently outperformed the benchmark with high risk-adjusted returns. The only drawback of the fund is its high expense ratio compared to the industry average.
Key information of the JM ELSS Tax Saver Fund:
AUM: ₹ 187 crore
Expense ratio: 1.15%
5Y CAGR: 19.62%
3. Quant ELSS Tax Saver Fund
The Quant ELSS tax saver fund ranks third with a score of 94 as per 1 Finance Mutual Fund Scoring and Ranking system , having consistently outperformed the benchmark and high-risk adjusted returns.
Key information of the Quant ELSS Tax Saver Fund
AUM: ₹ 11,561 crore
Expense ratio: 0.65%
5Y CAGR: 29.44%
4. SBI Long Term Equity Fund
SBI long-term equity fund ranks fourth with a score of 91 as per 1 Finance Mutual Fund Scoring and Ranking system, having consistently outperformed the benchmark with high risk-adjusted returns.
Key information of SBI Long Term Equity Fund:
AUM: ₹ 11,561 crore
Expense ratio: 0.93%
5Y CAGR: 23.06%
5. Kotak ELSS Tax Saver Fund
The Kotak ELSS fund ranks fifth with a score of 90, having consistently outperformed the benchmark while limiting the losses in the event of a market crash.
Key information of the Kotak ELSS Tax Saver Fund
AUM: ₹ 6,501 crore
Expense ratio: 0.57%
5Y CAGR: 17.85%
Investing in ELSS mutual funds can be a smart way to not only save on taxes but also to build long-term wealth. While the funds listed above have proven their consistency and strong performance, it is important to remember that every investor’s needs are different. Be it investment planning or tax planning, consulting with a qualified financial advisor can help you make the right choice.
