Top ELSS Funds in India For Jan 25 Based on 5Y CAGR: Quant ELSS, Bank of India ELSS and More

The investors are constantly looking for effective investment options and Equity Linked Savings Schemes (ELSS) have become one of the most popular and attractive investment vehicles in India. These mutual funds not only offer an opportunity for wealth creation but also help investors save taxes under Section 80C of the Income Tax Act. In this blog, we will explore the top ELSS funds in India for Jan 2025.

What are ELSS Funds?

Equity Linked Savings Schemes (ELSS) are a type of mutual fund that primarily invests in the stock market (equities). They are designed to provide tax benefits under Section 80C of the Income Tax Act of India. By investing in ELSS Funds, taxpayers can claim a deduction of up to ₹1.5 lakh in a financial year, reducing their taxable income.

ELSS funds are considered equity-based because they invest a significant portion of their corpus in stocks. These funds typically have a lock-in period of three years, which means you cannot redeem your investments before this period, making them a long-term investment option. The three-year lock-in is one of the shortest among tax-saving instruments.

Top ELSS Funds For Jan 2025 – Based on 5Y CAGR

Note: The ELSS Funds mentioned above have been selected based on 5Y CAGR as of December 31, 2024.

Overview of Top ELSS Funds in India

1. Quant ELSS Tax Saver Fund

Quant ELSS Tax Saver Fund aims to generate growth capital by investing mainly in a well-diversified portfolio of Equity Shares with growth potential. However, there is no assurance that the investment objective of the Scheme will be realised.

Key Metrics

• 1Y Return: 10.32%
• Benchmark Index: NIFTY 500 – TRI

2. Bank of India ELSS Tax Saver

Bank of India ELSS Tax Saver is an open-ended Equity Linked Saving Scheme with a statutory lock-in of 3 years and tax benefit. The Scheme aims to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities across all market capitalisations.

Key Metrics

• 1Y Return: 22.58%
• Benchmark Index: BSE 500 – TRI

3. Motilal Oswal ELSS Tax Saver Fund

The investment objective of Motilal Oswal ELSS Tax Saver Fund is to derive long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related instruments.

Key Metrics

• 1Y Return: 48.32%
• Benchmark Index: NIFTY 500 – TRI

4. SBI Long-Term Equity Fund

SBI Long-Term Equity Fund is an open-ended Equity Linked Saving Scheme with a statutory lock-in period of 3 years and tax benefit.

Key Metrics

• 1Y Return: 28.25%
• Benchmark Index: BSE 500 – TRI

5. Parag Parikh ELSS Tax Saver Fund

Parag Parikh ELSS Tax Saver Fund was launched in July 2019, which is an open open-ended equity-linked saving scheme with a statutory lock-in of 3 years and tax benefit.

Key Metrics

• 1Y Return: 22.31%
• Benchmark Index: NIFTY 500 – TRI

Conclusion

Investing in ELSS funds is a great way to save taxes while also taking advantage of the long-term growth potential of the stock market. The combination of tax benefits, higher returns, and a short lock-in period makes ELSS an appealing option for investors looking to maximize their financial goals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. 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 are subject to market risks, read all scheme-related documents carefully.