ELSS (Equity Linked Savings Scheme) mutual funds offer tax benefits under Section 80C of the Income Tax Act, 1961. Over the years, they have proven to be an attractive investment option, especially for those looking to save on taxes while seeking market-linked returns. According to Value Research, this category has provided an impressive 36.29% annualized return (CAGR) over the past year, 18.40% over three years, 21.50% over five years, and 15.63% over a decade.
ELSS mutual funds, also known as tax-saving funds, are primarily large-cap stock-focused, offering some degree of stability during market fluctuations. These funds come with a mandatory lock-in period of three years, making them suitable for investors with a medium to long-term investment horizon. Over the last decade, many of these funds have not only maintained stability but have also delivered significant returns, sometimes multiplying investments several times.
Here’s a look at the top 7 ELSS mutual funds that have delivered the highest SIP returns over the past 10 years. We also explore how a Rs 10,000 monthly SIP in these funds would have grown over this period.
1. Quant ELSS Tax Saver Fund – Direct Plan
- The fund has delivered a 27.6% annualized SIP return (XIRR) over 10 years. It manages assets worth Rs 10,528 crore, with a NAV of Rs 441.8092.
- A Rs 10,000 monthly SIP over 10 years, amounting to a total investment of Rs 12 lakh, has grown to Rs 51,91,767.
2. Bank of India ELSS Tax Saver Fund – Direct Plan
- With an annualized SIP return of 22.15% over 10 years, this fund has an AUM of Rs 1,428 crore and a NAV of Rs 193.8400.
- A Rs 10,000 monthly SIP over 10 years in this fund has turned into Rs 38,65,560.
3. JM ELSS Tax Saver Fund – Direct Plan
- The fund has provided a 21.03% annualized SIP return over 10 years, managing assets worth Rs 173 crore, with a NAV of Rs 55.3812.
- A Rs 10,000 monthly SIP in this fund has grown to Rs 36,38,416 in 10 years.
4. SBI Long Term Equity Fund – Direct Plan
- This fund has delivered a 20.71% annualized SIP return over 10 years, with an AUM of Rs 25,738 crore and a NAV of Rs 465.5056.
- A Rs 10,000 monthly SIP over 10 years in this fund has increased to Rs 35,76,096.
5. DSP ELSS Tax Saver Fund – Direct Plan
- With a 20.44% annualized SIP return over 10 years, this fund manages assets worth Rs 16,284 crore, with a NAV of Rs 148.4900.
- A Rs 10,000 monthly SIP over 10 years has grown to Rs 35,24,545.
6. Bandhan ELSS Tax Saver Fund – Direct Plan
- This fund has provided a 19.96% annualized SIP return over 10 years, with an AUM of Rs 6,856 crore and a NAV of Rs 172.2010.
- A Rs 10,000 monthly SIP over 10 years has turned into Rs 34,33,695.
7. Kotak ELSS Tax Saver Fund – Direct Plan
- With a 19.52% annualized SIP return over 10 years, this fund has an AUM of Rs 6,101 crore and a NAV of Rs 133.6070.
- A Rs 10,000 monthly SIP over 10 years has grown to Rs 33,53,795.
These funds demonstrate the potential of ELSS mutual funds to not only save taxes but also build wealth over time. Investors looking for long-term growth and tax benefits should consider these top-performing funds.