Equity Linked Savings Schemes offer various benefits to investors. While you enjoy the potential to earn higher returns, you can also save tax under Section 80C. With a mandatory lock-in period of three years, ELSS funds offer you a unique avenue for disciplined long-term investing.
Now, how do you choose the best ELSS fund to invest in 2025? We have curated the list of top-performing tax-saving funds for investors in 2025 in this blog.
5 Best Tax Saving Mutual Funds
Have a look at the best tax saving mutual funds where you can invest to enjoy the dual benefits of creating wealth and saving tax.
1. Quant ELSS Tax Saver Fund
The Quant ELSS Tax Saver Fund is known for its dynamic investment strategies. Experienced fund managers identify growth opportunities to maximize returns over time. This makes it an excellent opportunity for investors with a higher risk appetite and long-term goals.
Check out the performance, exit load, and portfolio of this fund on your mutual funds app and create a SIP.
- NAV: INR 394.3410
- AUM: INR 10,799 crore
- Expense Ratio: 0.59%
- 1-Year return: 14.38%
- 3-Year return: 19.45%
- 5-Year return: 32.67%
2. Bank of India ELSS Tax Saver Fund
BOI has come up with its tax-saving mutual fund, which takes a balanced approach to investing. The fund invests in both large and mid-cap equities, optimizing returns while exposing your investments to controlled volatility.
Investors looking for stable performance and consistent growth can go for this fund. It also brings in tax-saving benefits.
- NAV: INR 194.2000
- AUM: INR 1453.01 crore
- Expense Ratio: 0.84%
- 1-Year return: 27.98%
- 3-Year return: 21.54%
- 5-Year return: 27%
3. Motilal Oswal ELSS Tax Saver Fund
If you are an aggressive investor looking to save tax, the Motilal Oswal ELSS Tax Saver Fund might be a good fit for your financial profile. In the last one year, this fund returned over 50% to investors, which makes it suitable for those willing to take calculated risks for higher rewards.
- NAV: INR 63.7416
- AUM: INR 4186.93 crore
- Expense Ratio: 0.65%
- 1-Year return: 52.84%
- 3-Year return: 30.44%
- 5-Year return: 26.27%
4. SBI Long Term Equity Fund
SBI Long Term Equity Fund is another popular ELSS fund, known for its diversified portfolio and consistent returns. The demonstrated track record and the legacy of this financial institute make it a prime choice for those looking to balance risk and reward while saving on taxes.
- NAV: INR 459.1916
- AUM: INR 27,847.50 crore
- Expense Ratio: 0.93%
- 1-Year return: 32.96%
- 3-Year return: 26.39%
- 5-Year return: 25.42%
5. Parag Parikh ELSS Tax Saver Fund
The Parag Parikh tax-saver fund adopts a value-oriented strategy for investing. It invests in high-quality companies that bring you the potential for steady growth. Particularly, it’s suitable for conservative investors who prioritize stability and long-term wealth creation while offering tax benefits.
- NAV: INR 32.6417
- AUM: INR 4,385.16 crore
- Expense Ratio: 0.62%
- 1-Year return: 22.86%
- 3-Year return: 19.76%
- 5-Year return: 24.83%
Conclusion
Choosing the right ELSS fund is more than just about tax benefits. While the tax benefits are capped at investments worth INR 1.5 lakhs per annum, investors are generally more focused on long-term returns. All the funds we listed in this blog returned over 24% in the last five years.
We have listed these funds based on their approach to investment. Depending on your risk profile, you can choose ELSS funds targeting aggressive growth or the ones delivering steady returns.
