The stock market has witnessed a notable correction from its September highs, erasing significant gains that mutual funds across categories had accumulated in the post-pandemic period. Benchmark indices such as the Sensex and Nifty have seen a double-digit decline from their peaks, affecting short-term returns across equity mutual funds. This downturn has made selecting the right fund more complex, especially for investors looking to balance risk and reward.
As the financial year approaches its end, many investors seek tax-saving instruments under the Old Tax Regime. For those aiming to build long-term wealth while availing of tax benefits, Equity Linked Savings Schemes (ELSS) present a viable option.
The following ELSS funds have demonstrated exceptional performance, with an initial investment of ₹5 lakh growing significantly over 5 years.
| Scheme Name | AUM (₹ in Crore) | Expense Ratio (%) | Invested Amount in ₹ | Current Value in ₹ | Annualised Return (%) |
| Quant ELSS Tax Saver | 10,118.96 | 0.5 | 5,00,000 | 20,59,600 | 32.71 |
| Parag Parikh ELSS Tax Saver | 4,572.13 | 0.63 | 5,00,000 | 15,15,665 | 24.82 |
| HDFC ELSS Tax saver | 15,413.45 | 1.09 | 5,00,000 | 14,93,578 | 24.45 |
| BANDHAN ELSS Tax Saver | 6,620.13 | 0.68 | 5,00,000 | 14,6,5416 | 23.98 |
| DSP ELSS Tax Saver | 15,985.06 | 0.72 | 5,00,000 | 14,20,779 | 23.21 |
Note: Data as of March 11, 2025.
For investors looking to optimise their tax planning while generating potential long-term capital appreciation, ELSS mutual funds remain a sought-after investment avenue. Despite market corrections, select funds have demonstrated resilience, rewarding investors with substantial growth over time. However, it is essential to consider individual financial goals, risk tolerance, and investment horizons before making any decisions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 12, 2025, 3:53 PM IST
Team Angel One
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