Every savvy investor starts planning his savings investments early in the fiscal year and has planned ahead and been prepared for when the investment time comes. ELSS funds have gained considerable popularity in recent years as a tax-saving mutual fund investment scheme. ELSS helps investors to save money and claim tax deductions under the Income Tax Act Sec 80C.
ELSS is a scheme initiated by the government to encourage long-term investment in equity with minimal risk factors.
If you want to invest in ELSS, the right time to do so is at the start of the current financial year. By doing so, you’ll save time and effort looking for ways to save on taxes and have a semblance of discipline in your financial life.
Because ELSS relies heavily on equity or the stock market, the returns are likely to be higher and well worth the risk. In addition, the lock-in period compared to other savings schemes is quite small, namely only 3 years, while other schemes range from 6 years to 15 years. In NSC, 5 to 10 years depending on plan, in PPF, 15 years and on his samriddhi schemeapproximately 11 years.
Here are some of them the best ELSS funds you can invest for 2018-19.
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Aditya Birla Sun Life Tax Break 96
Launched in March 2008, this mutual fund is one of the best investment choices in 2018. This mutual fund comes with a moderate level of risk and has provided a yield of 25.54% since its launch.
The fund has received a 5 star rating and is rated in the top 3 funds in ELSS funds. Since the fund has been in the market for 10 years, it is easy to calculate and assess its performance over the years.
Its portfolio includes Sundaram Clayton Ltd, Reliance Industries Ltd, Pfizer Ltd, Honeywell Automation India Ltd, Gillette India Ltd, Bayer CropScience Ltd and others.
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Reliance Tax Saver Fund (ELSS).
The second best ranked ELSS mutual fund, the Reliance Tax Saver (ELSS) Fund is a moderately high risk fund and has provided a yield of 15.46% in the years since its launch in September 2005. This fund aims to gain higher capital appreciation through funding in equity and related instruments.
The fund’s portfolio includes ICICI Bank Ltd, HDFC Bank Ltd, Kotak Mahindra Bank Ltd, Larsen & Toubro Ltd, Maruti Suzuki India Ltd, Reliance Industries Ltd, SBI, Infosys Ltd, Grasim Industries Ltd and others.
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IDFC Tax Advantage Fund (ELSS).
Launched in December 2008, the fund is a moderately high risk fund and has provided 20.94% returns over the years. The fund has garnered 4 stars and is among the top 3 funds on ELSS.
Its portfolio includes KEC International Ltd, VRL Logistics Ltd, HDFC Bank Ltd, VRL Logistics Ltd, Future Retail Ltd, ICICI Bank Ltd, XMaruti Suzuki India Ltd, CBLO (CCIL) and others.
