This year has been rewarding the investors of ELSS. Equity Linked Savings Scheme (ELSS), which provides better returns along with tax saving, is one such investment option whose lock-in period is also the shortest. Talking about the tax saving options, the lock-in period of PPF is 15 years, five years for ULIPs and 5 years for tax saving fixed deposits, while the lock-in period of ELSS is the lowest three years. Dhirendra Kumar, CEO of Value Research, a company that tracks mutual funds, says that ELSS is the best option when it comes to the benefits of tax saving. Regardless of the tax-saving instrument you see, the best return will be from ELSS. He said that the returns of any equity-linked savings scheme over a period of 5 years have been better than the investment options coming through Section 80C. This is because ELSS invests in equities and is also managed by professional fund managers.
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ELSS returns more than 19 percent in three years
If we talk about the Top 5 Equity Linked Savings Scheme, the best performer has been Mirae Asset Tax Saver Fund which has given 19.36% returns in 3 years. At second place was Axis Long Term, Equity Fund. It has given a return of 17.45 percent in three years.
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How to choose the Equity Linked Savings Scheme
Dhirendra Kumar says that his previous performance must be considered before selecting ELSS. At least their 5 and 7-year returns should be seen. Mutual funds are not only helpful in saving your income tax but they also play a big role in depositing money.
