Top Performing ELSS Mutual Funds in the last 10 years
One of the best tax saving options are ELSS Mutual Funds. While the stock markets are always volatile, investing in mutual fund schemes for 5-10 years always rewarded investors with good returns. If you are willing to invest in mutual funds to save income tax, you can invest in ELSS Tax Saving Mutual Funds. If you would have invested in some of the good ELSS Mutual Funds in the last 10 years, their investment would have grown up to 4X along with tax benefits. What are ELSS Tax Saving Mutual Funds what are its benefits? Which are the Top Performing ELSS Mutual Funds in 2019 from the last 10 years?
Also Read: Best Largecap Funds to invest in 2019
What are ELSS Tax Saving Mutual Funds?
Equity Linked Saving Scheme (ELSS) Mutual Funds also known as tax saving mutual funds are open ended equity mutual funds that provide income tax benefits. Investors can invest upto ₹ 1.5 Lakhs per annum in these ELSS funds and get income tax benefits u/s 80c.
What are the Benefits of ELSS Mutual Funds?
Here are some of the major benefits:
1) Investors can invest in these ELSS mutual funds to grow their money by participating in the equity market.
2) ELSS funds have lowest lock-in period of 3 years compared to any other tax saving investment option like PPF, NSC, Tax Saver FD etc.,
3) One can invest in dividend option of ELSS funds and get regular income even during the lock-in period.
4) You can invest in ELSS funds every month through SIP which would bring discipline in your tax planning benefit from stock market fluctuations month on month.
5) If you are in a higher tax bracket, it helps you to save income tax up to ₹ 46,800.
How do ELSS Mutual Funds work exactly?
When you invest in ELSS mutual funds in a financial year, you are eligible to get an income tax deduction u/s 80C up to ₹ 1.5 Lakhs. Means such amount can be deducted from your total income and you pay income tax only on your net income post this deduction. You can invest in ELSS mutual funds, PPF, Tax saver FD, NSC, etc., to save income tax u/s. 80C. Below example