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We are just one month away from entering the highly energized and enthused period called the Tax Cycle.
And while it’s hard to break it up to you but there’s nothing that you can do NOW to save taxes in this cycle. But what if we told you that the days of your money getting deducted in name of taxes are over?
What if we told you that come next year and you would not just be able to save some tax money but also generate money?
Sounds like a scam, doesn’t it?
But, believe it or not, the direction we are going to nudge you in right now is one where, under Section 80c of the Indian Income Tax Act, you’ll be able to spare up to Rs.1,50,000 from taxation. This investment won’t just keep your money safe, but will also grow it massively.
Well, enough with the mystery. Let us go on with telling you what we are talking about.
The mode of tax saving investment which will not just save your money but also grow it is ELSS or Equity Linked Savings Scheme.
And in this article, we are going to look into the different ELSS funds that you should invest in today or latest by February to save some serious tax amounts next year.
Without further delay, here we go.
The 5 Best ELSS Funds to Invest in 2019
- Axis Long Term Equity Fund
Launched in 2009, Axis Mutual Fund especially the Long Term Equity Fund is hands-down the start of ELSS community. The success that the AUM has shown has placed it at a valuation of Rs. 17,626 Crore.
The mantra? It makes investments in companies which have the potential to gain revenue in 3 to 4 year time period.
The scheme continues to outperform the benchmark by investing in more than 73% investments in large-cap security. It has even recorded returns of 19.78% and 11.69% in last 5 years and 3 years respectively.
- DSP Tax Saver Fund
The large-cap emphasized fund deals in over 74% large-cap investments and follows the investment style with a focus on companies that come with a strong potential for growth. Since its launch in 2007, the fund type has given a CAGR of nearly 13.7%.
And in the past 5 and 3 years, it has given returns like 17.24% and 11.78%.
- ICICI Prudential Long Term Equity Fund
The fund is known to invest in companies having an attractive set of valuations and potential of growth across a number of different market capitalization. It works on a value-based investment style that enables it to constantly outperform the other ELSS funds in the same category even in the most bullish of the markets.
The portfolio which is made of 65% large-cap companies have been able to generate 19.6% and 15.7% returns in the last 10 and 5 years.
- Invesco India Tax Plan
Launched in 2009, the ELSS fund type has given over 14% returns between then and now. It works with the aim of achieving long-term appreciation through investment in equities across a number of different market capitalization.
The portfolio of Invesco India Tax Plan is made of 75% large-cap security fund and 25% small and mid-cap funds.
In the past 5 and 3 years, the fund has gotten its investors a percent of 17.6 and 11.6 rates of return, ergo outperforming the benchmark over both the time.
- IDFC Tax Advantage
The fund launched in 2008 has gained the investors around 18% returns till the time of launch. This not so popular ELSS fund passes your money into small and mid-cap funds through its 52% investment in them. The fund type believes in a conservative approach of investment by keeping its focus on the companies having very high growth opportunity and low valuations.
Even after maintaining a low profile, the ELSS fund has gotten the investors 15.86% and 11.39% returns in the last 5 and 3 years, respectively.
So, here were the five Equity Linked Savings Schemes that you SHOULD invest in 2019 to avail tax saving and high returns when they mature.
Well, the list doesn’t end here. There are a number of different other fund schemes constantly outperforming themselves and proving to be a gem of an investment for the investors.
In case, you are wondering what are the other mutual fund tax-saving investment fund schemes, get in touch with our team of mutual fund experts, today!
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