loader2
Partner With Us NRI

Invest In ELSS Mutual Fund

Top Performing Tax Saving ELSS Funds

3 Yr Return
5 Yr Return
10 Yr Return
NAV - 04-Mar-2022
679.62
Min.Amount
Buy
3 Yr Return 14.15%
5 Yr Return 12.73%
10 Yr Return -
NAV - 04-Mar-2022
33.16
Min.Amount ₹ 500
Buy
3 Yr Return 16.27%
5 Yr Return 8.75%
10 Yr Return 12.88%
NAV - 04-Mar-2022
952.19
Min.Amount ₹ 500
Buy

What are ELSS Mutual Funds?

Equity Linked Saving Scheme or ELSS is a type of mutual fund scheme that invests in equity markets and qualifies for tax savings under section 80C of the Income Tax Act. Investments of up to Rs 1.5 lakhs done in ELSS Mutual Funds in a financial year are eligible for tax deduction u/s 80C. It translates into a tax saving of upto Rs 46,800 in a financial year. These funds also have the lock-in of just 3 years from the date of allotment of units, lowest amongst all the options available in Section 80C.

Dual advantages of Tax-saving & potential for higher returns than traditional Tax-saving investments make ELSS a must have for every investor.

Invest in top ranking ELSS funds to plan your wealth building journey and save taxes. Compare and choose from a wide range of ELSS funds curated by ICICIdirect to benefit from high returns and save tax up to Rs 46, 800 as per Section 80C.

Why Tax Saving (ELSS) Fund?

Eligible for deduction u/s 80C. Save taxes up to Rs 46,800 in a financial year
Shortest lock-in period of 3 years as compared to other Tax saving instruments
Dual advantages of Tax saving & Equity based returns
Compare and choose from a wide range of ELSS funds curated by ICICIdirect Research

ELSS Tax Calculator

Amount Invested
Your Tax Slab
Why are ELSS Mutual Fund the best Tax- Saving option
Save upto Rs. 46,800 a year in taxes
Lock-in period of only 3 years
Get your investment proof instantly
Cherry picked by our experts
Suitable for long term investment
Earn equity type returns

Why invest in ELSS through ICICIdirect.com?

ICICIdirect website or  Money app

Invest in best ELSS Funds with ease in just 2 minutes through website or ICICIdirect Money app

List of recommended ELSS Funds

Scheme selection made easy through list of recommended ELSS Funds hand-picked by our award-winning research

iDirect Investment

Option to invest in ready-made iDirect investment basket of ELSS Funds

Proof of Investment

Get proof of investment online

Easy Redemption

Redemption made easy with display of units that have completed lock-in

Comparing ELSS with other Tax-Saving Instruments(U/S 80C)

Investment Returns Lock-in period Tax on Returns
Best OptionELSS 12-14% 3 years Nil till Rs 1 lakh, 10% beyond 1 lakh
Public Provident Fund(PPF) 7-8% 15 years Tax-exempt
5- Year Bank Fixed Deposit 4-6% 5 years Yes
National Savings Certificate(NSC) 7-8% 5 years Yes
National Pension System(NPS) 8-10% Till retirement Partially Taxable

Videos

ELSS

ELSS

ELSS

Podcast

ELSS: Wealth creation with tax savings by Mr. Rohit Singhania, Co-Head Equities, DSP India

Explore dual advantage of Tax Saving upto Rs. 46,800 and Wealth Creation.

ElSS Mutual Fund FAQ's

Equity Linked Saving Scheme or ELSS is a type of mutual fund scheme that invests in equity markets and qualifies for tax savings under Section 80C of the Income Tax Act. Investments of up to Rs 1.5 lakhs done in ELSS Mutual Funds in a financial year are eligible for tax deduction u/s 80C. It translates into a tax saving of up to Rs 46,800 in a financial year. These funds also have the lock-in of just 3 years from the date of allotment of units, lowest amongst all the options available in Section 80C. Dual advantages of Tax-saving & potential for higher returns than traditional Tax-saving investments make ELSS a must have for every investor.

1. Tax Savings of up to Rs 46,800 in a financial year Investments in ELSS funds are eligible for tax benefits under Section 80C of the Income Tax Act. Under this section, you could claim deductions of a maximum of Rs. 1.5 lakhs from your taxable income. Assuming you fall under the highest tax bracket of 30% and have invested the entire Rs 1.5 lakhs in ELSS funds in a financial year, you could save taxes up to Rs. 46,800.

2. Shortest lock-in period among Section 80C options ELSS Mutual Funds come with a lock-in period of just three years, which happens to be the shortest among all tax-saving investment options under Section 80C of the Income Tax Act, 1961. Hence, they are more liquid as compared to any other Section 80C investment.

3. Potential to create wealth By investing in ELSS, you not only get tax benefits but also an exposure to Equity Markets. For sustainable wealth creation in the long term, one cannot ignore equities. This is because, equity as an asset class has the potential to beat inflation and generate higher returns than most other asset classes.

4. Better Post Tax Returns Since the lock-in period is of 3 years for ELSS investments, the capital gains arising are taxed as Long Term Capital Gains. Capital gains of up to Rs 1 lakh a year are tax-exempt and any long-term gains exceeding Rs 1 lakh are taxed at a rate of 10%, thereby giving better post tax returns.

1. Any investor looking to save taxes u/s Section 80C can consider investing in ELSS.

2. ELSS is best suited for young investors as they have time on their side to unleash the power of compounding to the fullest and enjoy high returns while saving on taxes of up to Rs 46,800 a year.

It is not necessary to have a large sum of money to invest in ELSS Mutual Fund. Most ELSS Mutual Fund allow you to start a SIP (Systematic Investment Plan) and lump sum (one –time) investment with a minimum investment of Rs 500.

1. Invest in best ELSS Funds with ease in just 2 minutes through website or ICICIdirect Money app

2. Scheme selection made easy through list of recommended ELSS Funds hand-picked by award-winning research

3. Get proof of investment online – generate it yourself or get it on registered e-mail demat account or have given financial documents physically. You can activate your account by accepting online Terms and Conditions for Commodity Derivatives and submitting Mandatory Communication Details wherein you will have to give mandatory details and commodities preference. This 'Mandatory communication Details' page will be displayed post acceptance of Terms and Conditions. If you are a resident Indian then your Gross Annual income should have been update within 18 months, if you are a corporate then your networth should have been updated within 18 months. You can update your gross annual income p. a./Networth under Setting > Personnel Details –>Other Details tab.

Since ELSS mutual funds are a type of equity funds, they are taxed like an equity fund.

1. No short-term capital gains as there is a mandatory lock-in period of three years.

2. Gains arising from ELSS investment are taxed as Long Term Capital Gains. The long-term capital gains of up to Rs 1 lakh a year are tax-exempt. Any long-term gains exceeding Rs 1 lakh are taxed at a rate of 10%

After you place your order, you can view the details of your transaction from the Order Book in ICICIdirect.com. Also an email will be sent to your registered email address

As decided by the AMC, there is a minimum transaction amount indicated against each scheme. You will get to see the minimum transaction amount for each scheme while placing your Mutual Fund order.

Yes, you can transact at any time of the day. However, in order to get the applicable NAV for the current day you would have to transact before the cut-off time of the scheme. If you place any order after the said cut-off time, you would be eligible for applicable NAV of the next day. As per SEBI guidelines the cut-off time for accepting orders in Non-liquid funds is 1500 hrs. However, taking into account internal transaction processing time, ICICIdirect.com has kept the cut-off time, for accepting orders in Non-liquid funds as 14:00 hrs.

Yes, you can place your request even on a holiday. However, the request would be processed on the next business day and your order will processed as per applicable NAV of the next business day

Disclaimer

ICICI Securities Limited- AMFI registered Mutual Fund Distributor. Registered office of I-Sec is at ICICI Securities Ltd. (I-Sec) - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel: (91 22) 6807 7100, Fax: (91 22) 6807 7803. I-Sec is also a SEBI registered with SEBI as a Research Analyst vide registration no. INH000000990. AMFI Registration No.: ARN-0845. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Please note, Mutual Fund related services are not Exchange traded products and I-Sec is just acting as distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.