4 Best ELSS Funds to invest in 2019 | Top 4 Tax Saving Mutual Funds for 2019
With the beginning of the New Year 2019, the tax saving season has started. This is the time of the year where you are looking for the best tax saving options to save taxes u/s 80C of the Income Tax Act. There are various investment options available for getting tax benefits u/s 80C.
Most people know the common tax saving instruments like EPF, PPF, NSC and Life Insurance Premium. But only a few people know about ELSS fund which is one of the best tax savings investment options. So, today I thought to write a blog post on 4 Best ELSS Funds to invest in 2019 | Top 4 Tax Saving Mutual Funds for 2019.
What is ELSS Fund?
Equity Linked Savings Scheme is popularly known as ELSS. ELSS is a diversified equity mutual fund scheme offered by mutual funds. ELSS funds (Tax Saving Mutual Funds) have a lock-in period of 3 years. These funds offer tax benefits for an investment of up to Rs. 1.5 lakh u/s 80C of Income Tax Act 1961.
Advantages of investing in ELSS Fund
ELSS fund is one of the best tax saving investment options for an investment of Rs 150,000 u/s 80C. ELSS funds allow you to save tax while earning high returns from the equity market over a long period. The lock-in period of an ELSS fund is much lower than the minimum 5 years for traditional tax saving instruments. You may choose to remain invested after the completion of the mandatory lock-in period of 3 years. You can invest in ELSS via SIP. ELSS Tax saving mutual funds are also regulated by SEBI.
Disadvantages of investing in ELSS Fund
All the ELSS funds are exposed to equity market-related risks. There is no guarantee of returns as ELSS funds invest in equity and equity-related products. The tax benefits are limited. The tax deduction of Rs.150,000 inclusive of all investments u/s 80C. The investment in ELSS funds is locked-in for 3 years. Therefore, no premature withdrawal is allowed.
Best ELSS Funds to invest in 2019 | Top Tax Saving Mutual Funds for 2019
These Best ELSS Funds to invest in 2019 are selected based on the following factors.
1. These funds have generated superior returns in the last 3, 5 and 10 years.
2. Selected funds have AUM (Assets Under Management) of more than Rs. 500 Cr.
3. Crisil ranked these funds as Rank-1 and Rank-2. Rank1 is the highest rank.
4. Value Research rated these funds as 5 stars and 4 stars (Out of 5). Higher is better.
Best ELSS Funds to invest in 2019 | Top Tax Saving Mutual Funds for 2019
Here is the list of 4 Best ELSS Funds to invest in 2019. The list is of Top 4 Tax Saving Mutual Funds for 2019
1. Axis Long Term Equity Fund
2. Aditya Birla Sun Life Tax Relief 96
3. Invesco India Tax Plan
4. L&T Tax Advantage Fund
Best ELSS Funds to invest in 2019 | Top Tax Saving Mutual Funds for 2019
Following are the Best ELSS Funds to invest in 2019:
1. Axis Long Term Equity Fund – Regular Plan – Growth
Axis Long Term Equity Fund is at number one in the list of the Best ELSS Funds. This fund is a star performer in the ELSS category. The fund has been performing well year after year since its inception in December 2009. The fund has given returns of 19.28% in last 5 years. NAV is Rs.41.7156 as on January 8, 2019. The expense ratio of this ELSS fund is 2.08%. The fund’s largest exposure is in the financial sector. The fund is currently being managed by Mr. Jinesh Gopani. He has been managing this fund since April 1, 2011. You can invest in this fund with an amount as low as Rs. 500 in lump sum mode.
2. Aditya Birla Sun Life Tax Relief 96 – Regular – Growth
Aditya Birla Sun Life Tax Relief 96 is one of the oldest and Best ELSS Funds to invest. The fund has been performing well since its inception in March 1996. The fund has given returns of 19.01% and 18.92% in the last five and ten years respectively. NAV is Rs. 30.42 as on January 8, 2019. The expense ratio of this fund is 1.91%. Mr. Ajay Garg is currently managing this fund. He has over 15 years of work experience in financial services. This fund also allows you to invest as low as Rs. 500.
3. Invesco India Tax Plan – Regular – Growth
With a return of 19.48% in last 10 years, the fund has performed better than the benchmark index and the category average. This ELSS fund has given returns of 17.82% to the investors in the last 5 years. NAV of the fund is Rs. 48.69 as on January 8, 2019. The expense ratio of the fund is 2.52%. Mr. Amit Ganatra and Mr. Dhimant Kothari are currently managing this ELSS fund. They have been managing this fund since March 29, 2018. You can invest in this fund with a sum as low as Rs. 500/-.
4. L&T Tax Advantage Fund – Regular – Growth
L&T Tax Advantage Fund has also been performing well since its inception in February 2006. This ELSS fund has delivered 16.1% and 18.31% returns in the last 5 & 10 years respectively. NAV of this fund is Rs. 52.334 as on January 8, 2019. The expense ratio of this fund is 2.15%. The fund’s largest exposure is in the banking and financial sector. Mr. S. N. Lahiri is currently managing this fund. This fund also allows you to invest a sum as low as Rs. 500.
Best ELSS Funds to invest in 2019 | Top Tax Saving Mutual Funds for 2019
Best ELSS Funds to invest in 2019 | Top Tax Saving Mutual Funds for 2019
Disclaimer: The information in this post (4 Best ELSS Funds to invest in 2019 | Top 4 Tax Saving Mutual Funds for 2019) is strictly for general information purposes only. ELSS funds are exposed to equity market-related risks. There is no guarantee of returns in ELSS funds. Past performance of an ELSS fund may or may not sustain in the future. Please consult a financial advisor or a mutual fund advisor before taking any investment decision.
4 Best ELSS Funds to invest in 2019 | Top 4 Tax Saving Mutual Funds for 2019
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