Best Tax-Saving Mutual Funds (ELSS) in India

Today, we will know about tax saving. When we talk about tax saving, then it is very important for you to know that ELSS mutual funds are best for tax exemption in India of Income Tax Act.ELSS, or Equity Linked Savings Scheme offers tax benefits and high returns. You will be surprised to know that the lock-in period of ELSS is 3 years.ELSS is the shortest among tax-saving options. Many investors prefer ELSS as compared to PPF and FD because it provides long-term planning facilities.

If you are looking for the ELSS is the most eligible Mutual Fund option for tax exemption under section 80C, then this guide will help you choose the right funds. ELSS is good for saving tax and earning good returns in the long run.

1. What is ELSS?

Equity Linked Savings Scheme is a mutual fund that invests in equity.

We will know more about it in detail later and it provides tax benefits under Section 80C of the Income Tax Act. An investor can claim a deduction of up to Rs 1.5 lakh.

For this, ELSS mutual funds are best for tax exemption in India.

We have read above that the lock-in period of ELSS is 3 years. Which is the lowest among tax-saving options?

Know why: ELSS is linked to the market. Therefore, there is a possibility of high returns over time. If you choose wisely, using your brain, you can help increase wealth. In this case, ELSS is good for tax saving and long-term investment.

2. Benefits of Investing in ELSS mutual funds are best for tax exemption in India

ELSS gives you dual benefits – tax savings and wealth creation. As a market-linked instrument with equity exposure, ELSS can deliver superior long-term returns. With a lock-in of only 3 years, it is more liquid than other tax-saving options.

For taxpayers looking for smart deductions, ELSS is the best mutual fund for tax exemption under 80C in India. It encourages the habit of investing through SIP. Many CA firms in Kanpur recommend ELSS for tax savings.

Choose the ELSS mutual funds that are best for tax exemption in India to save tax and grow more.

3. Factors to Consider When Choosing the Best ELSS Fund

While choosing the best ELSS fund in India, pay attention to the performance, experience of the fund manager, total investments, and returns consistently. Check the 3-year and 5-year CAGR to check the growth rate.

Since ELSS mutual funds are best for tax exemption in India, also consider your risk appetite as these are equity funds. Check the portfolio split and benchmark performance.

Financial experts from many top CA firms in Kanpur say that ELSS is good for tax savings as well as long-term wealth creation. Choose wisely to get maximum benefits with minimum risk.

4. Best Tax-Saving Mutual Funds (ELSS) in India

In 2024, ELSS schemes have consistently outperformed many of their peers, making them attractive options for tax-saving and long-term investment. ELSS mutual funds are the best for tax exemption in India under Section 80C, providing a deduction of up to ₹1.5 lakh annually.

These funds invest primarily in equities, combining growth potential with tax benefits. Some of the best ELSS mutual funds in India this year include:

• Axis Long-Term Equity Fund
  
• Mirae Asset Tax Saver Fund
  
• Quant ELSS Tax Saver Fund
  
• Canara Robeco Equity Tax Saver
  
• SBI Long-Term Equity Fund

The funds above have a strong track record, the fund managers are experienced, and the expense ratios are competitive. If the lock-in period is more than 3 years, investors should choose another fund or seek professional advice from a financial advisor like CA in Kanpur, India, before applying for tax savings and wealth creation.

5. How to Invest in ELSS? best mutual fund for tax exemption

Investing in ELSS is now simple, flexible, and accessible to all types of investors. Since ELSS is the best mutual fund for tax exemption in India under Section 80C, it is very important to know the right way to invest.

You can either invest through a lump sum or start a SIP (Systematic Investment Plan), which allows regular monthly contributions and reduces market timing risk.

Investors can buy ELSS directly from AMC (asset management company) websites or use popular investment platforms like Groww, Zerodha, or Paytm Money.

If you are new to mutual funds, talking to a qualified CA or financial planner in Kanpur can help you choose the best ELSS is good tax savings mutual fund in India, based on your risk appetite and goals.

Most importantly, always review the fund performance, expense ratio and lock-in implications before making an ELSS investment.

6. Taxation on ELSS Returns with expert CA in Kanpur

Even though ELSS mutual funds are best for tax exemption in India today, and under this, up to ₹ 1.5 lakh exemption is available under section 80C, the returns from them are not tax-free. There is a lock-in period of 3 years for investing in ELSS. After this, the profit earned is called “Long Term Capital Gain (LTCG)”.

this profit is more than ₹ 1 lakh in any financial year, then 10% tax is levied on that additional amount (without indexation). Nevertheless, in the opinion of experts, ELSS is good for tax saving and is also an excellent option for increasing capital in the long term.

you need help with tax calculation or planning, then definitely consult an experienced CA in Kanpur. With the right guidance, you can choose the Best ELSS mutual funds in India, which will help you in tax saving as well as give better returns.

7. Common Mistakes to Avoid When Investing in ELSS under section 80C

We also know that many investors think that ELSS mutual funds are best for tax exemption in India, but to get the right returns, it is also very important to avoid some common mistakes.

1. Investing only to save tax – Many people invest money in ELSS only to get exemption under section 80C, whereas ELSS is good for tax saving as well as a great option for long-term wealth creation.
2. Withdrawing funds as soon as the lock-in is over – The lock-in of ELSS is 3 years, but there is a possibility of getting better returns by staying in ELSS mutual funds in India for a long time.
3. Not monitoring the performance of the fund – Once you invest, it is important to track the performance of the fund from time to time so that changes can be made if needed.
4. Not taking advantage of SIP – With SIP, you can make small investments and take advantage of market fluctuations.

If you are having difficulty deciding which fund to invest in or where not to invest, if you are from Lucknow or Kanpur, then definitely consult an experienced CA.

So that you will get knowledge about the most suitable ELSS fund as per your tax planning and financial goals and also about the rest of the funds, so that it will be easy for you to choose.

8. Consult -Best Tax-Saving Mutual Funds (ELSS) in India

If you want to save tax as well as create wealth in the long term, then ELSS mutual funds are best for tax exemption in India.

not only offers tax exemption of up to ₹1.5 lakh under section 80C, but also gives the possibility of better returns due to being an equity-based investment.

Investors should start investing early and choose the Best mutual funds in India with proper planning, so that they can get maximum benefit. Keep in mind that ELSS is good for tax saving, but its real benefit will be available only if you invest for a long period.

If you are not completely clear about which fund is suitable for you, consult an experienced CA in Kanpur. A chartered accountant can help you choose the most suitable ELSS option based on your income, tax slab, and financial goals.

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Smart Tax Saver| Chartered Accountant in Kanpur, India