
ELSS Mutual Funds
3 Year Average Returns
Funds on Dhan
37
ELSS Funds are a type of Tax Saving Equity Fund that allows you to save tax while you invest for your long-term goals. These Funds are eligible for tax deduction under Section 80C of the Income Tax Act. While these are the best ELSS Mutual Funds to invest in, you must know these 3 things before you start investing.
- Goal: ELSS Funds offer high growth potential and tax savings. These Funds can benefit from the price appreciation of the stocks and the tax exemption of up to Rs 1.5 lakh per year.
- Investment Horizon: Suitable for investors looking for tax-saving options with a mandatory lock-in period of 3 years, offering a chance for wealth creation and tax saving.
- Risk: These Funds carry market risk, given their equity exposure, but with tax benefits and the potential for substantial long-term growth.
Best ELSS Funds to Invest in 2026
Note: 3Y & 5Y returns are annualised. Rest everything is absolute.
Scheme | AUM (in Cr.) | Fund Age | 1W | 1M | 3M | 6M | 1Y | 3Y | 5Y |
|---|---|---|---|---|---|---|---|---|---|
Compare | ₹ 4,890 | 11 Yrs | -2.71% | -6.07% | -3.43% | -0.83% | 0.72% | 19.63% | 15.42% |
Compare | ₹ 240 | 13 Yrs | -2.23% | -5.57% | -2.74% | 4.17% | -1.22% | 15.69% | 11.92% |
Compare | ₹ 481 | 4 Yrs | -0.67% | -2.86% | -3.26% | 2.14% | -2.89% | 15.51% | 0.00% |
Compare | ₹ 3,974 | 13 Yrs | -1.95% | -5.10% | -4.50% | -0.86% | -3.04% | 15.23% | 11.51% |
Compare | ₹ 13,103 | 13 Yrs | -0.92% | -4.05% | -4.11% | 1.98% | 3.45% | 14.54% | 13.26% |
Compare | ₹ 445 | 7 Yrs | -3.46% | -8.26% | -7.59% | -3.80% | -6.68% | 13.99% | 10.81% |
Compare | ₹ 857 | 13 Yrs | -1.84% | -4.49% | -6.11% | -3.03% | -4.18% | 13.85% | 9.55% |
Compare | ₹ 428 | 13 Yrs | -1.20% | -2.76% | -5.00% | -2.24% | -3.37% | 13.16% | 10.23% |
Compare | ₹ 30,027 | 13 Yrs | -1.56% | -3.15% | -7.35% | -6.36% | -9.77% | 12.91% | 12.46% |
Compare | ₹ 15,569 | 13 Yrs | -1.08% | -2.52% | -5.40% | -4.63% | -7.66% | 12.78% | 10.21% |
Compare | ₹ 14,949 | 13 Yrs | -0.58% | -1.92% | -4.47% | -2.99% | -10.63% | 12.43% | 12.26% |
Compare | ₹ 1,366 | 13 Yrs | -1.53% | -4.61% | -4.24% | -5.27% | -2.92% | 11.99% | 9.99% |
Compare | ₹ 14,096 | 13 Yrs | -1.37% | -3.50% | -5.23% | -4.83% | -5.87% | 11.85% | 9.87% |
Compare | ₹ 4,427 | 12 Yrs | -1.74% | -5.03% | -5.60% | -3.26% | -3.78% | 11.66% | 9.73% |
Compare | ₹ 24,625 | 10 Yrs | -1.38% | -3.72% | -5.92% | -2.83% | -7.45% | 11.61% | 8.95% |
Compare | ₹ 8,167 | 13 Yrs | -0.82% | -2.98% | -5.06% | -3.18% | -5.66% | 11.25% | 8.33% |
Compare | ₹ 2,598 | 13 Yrs | -1.61% | -4.86% | -3.68% | 1.68% | -7.47% | 11.22% | 7.87% |
Compare | ₹ 13,559 | 13 Yrs | -1.04% | -3.92% | -6.76% | -4.49% | -8.25% | 10.55% | 6.65% |
Compare | ₹ 6,071 | 13 Yrs | -1.39% | -4.06% | -4.61% | -1.89% | -5.54% | 10.45% | 10.27% |
Compare | ₹ 30,269 | 13 Yrs | -0.47% | -2.58% | -3.66% | -0.65% | -6.15% | 10.28% | 4.63% |
Compare | ₹ 71 | 13 Yrs | -1.77% | -4.65% | -2.86% | -0.47% | -7.75% | 10.26% | 8.97% |
Compare | ₹ 13,499 | 13 Yrs | -1.45% | -4.61% | -6.17% | -4.81% | -9.63% | 9.96% | 7.72% |
Compare | ₹ 5,839 | 13 Yrs | -0.97% | -3.01% | -5.60% | -4.59% | -10.87% | 9.78% | 9.10% |
Compare | ₹ 821 | 13 Yrs | -1.44% | -4.02% | -5.13% | -2.03% | -7.09% | 9.65% | 8.39% |
Compare | ₹ 196 | 17 Yrs | -1.23% | -0.94% | -5.01% | -3.83% | -10.57% | 9.65% | 8.38% |
Compare | ₹ 6,596 | 13 Yrs | -1.48% | -2.31% | -4.13% | -1.97% | -5.30% | 9.48% | 9.31% |
Compare | ₹ 680 | 10 Yrs | -0.85% | -3.70% | -3.94% | 0.42% | -6.47% | 9.06% | 8.19% |
Compare | ₹ 972 | 13 Yrs | -2.07% | -5.62% | -5.71% | -3.80% | -10.56% | 8.70% | 7.38% |
Compare | ₹ 48 | 8 Yrs | -0.62% | -2.49% | -4.42% | -3.71% | -10.87% | 8.70% | 6.94% |
Compare | ₹ 5,401 | 7 Yrs | -1.11% | -1.50% | -4.11% | -3.95% | -12.68% | 8.41% | 9.71% |
Compare | ₹ 332 | 3 Yrs | -2.05% | -5.66% | -6.93% | -3.29% | -7.62% | 8.13% | 0.00% |
Compare | ₹ 829 | 10 Yrs | -1.04% | -3.00% | -6.04% | -4.95% | -10.97% | 7.87% | 7.66% |
Compare | ₹ 1,212 | 13 Yrs | -1.50% | -3.74% | -5.93% | -6.87% | -11.23% | 7.85% | 7.01% |
Compare | ₹ 3,253 | 13 Yrs | -1.17% | -2.83% | -5.88% | -3.66% | -9.79% | 7.76% | 5.80% |
Compare | ₹ 44 | 7 Yrs | -0.82% | -3.00% | -6.08% | -3.22% | -7.94% | 6.77% | 5.45% |
Compare | ₹ 104 | 3 Yrs | -1.21% | -6.30% | -1.43% | 1.32% | -5.35% | 3.00% | 0.00% |
Compare | ₹ 88 | - | -1.72% | -4.02% | -4.07% | -2.14% | -3.70% | 0.00% | 0.00% |
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Disclaimer: Mutual fund investments carry market risks; read all scheme-related documents carefully. Past performance does not guarantee future returns.
About ELSS Funds
- Equity Focus: ELSS funds invest a majority of their portfolio in stocks or equity-related instruments, aiming for higher returns through stock market exposure.
- Tax Benefits: Investments in ELSS are eligible for tax deductions of up to ₹1.5 lakh under Section 80C.
- Lock-in Period: They come with a mandatory lock-in period of three years, which is shorter compared to other tax-saving instruments like PPF or NSC.
- Tax Efficiency: One of the primary benefits of ELSS is the tax deduction under Section 80C, which can significantly reduce your taxable income.
- Higher Return Potential: They offer higher returns in the long term, as they invest mainly in equities, which have the potential to outperform fixed income instruments.
- Shortest Lock-in: Among all Section 80C investments, ELSS has the shortest lock-in period of just 3 years.
- SIP Option: You can invest via SIP, making it easy to spread your tax-saving investments throughout the year.
- ELSS provides tax benefits under Section 80C up to ₹1.5 lakh, effectively reducing your tax liability.
- The 3-year lock-in enforces investment discipline, often leading to better long-term outcomes.
- Being equity-oriented, ELSS can be volatile in the short term but has historically delivered superior returns over longer periods.
- Each SIP installment has its own 3-year lock-in, so you need to plan liquidity accordingly.
- Salaried individuals looking to save tax under Section 80C while also growing their wealth.
- Investors with a long-term outlook who can stay invested beyond the 3-year lock-in for better returns.
- Young professionals starting their investment journey who want both tax savings and equity exposure.
- Those already maxing out other 80C options (PPF, insurance) who want a higher-return tax-saving avenue.
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FAQs
ELSS Funds (Equity Linked Savings Scheme) work by investing a significant portion of your money into equities and equity-related instruments. They aim to offer dual benefits: the potential for high returns, akin to equity investments, and tax savings under Section 80C of the Income Tax Act. They have a mandatory lock-in period of 3 years.
ELSS Funds are primarily invested in the stock market, across a wide range of sectors and market capitalizations. This includes large-cap, mid-cap, and small-cap stocks. The fund managers have the discretion to choose stocks based on the fund's investment strategy.
ELSS Funds can generate profit through capital appreciation of the stocks they are invested in and dividends received from those stocks. The potential for high returns is similar to other equity investments. However, returns are subject to market risks.
Investments in ELSS Funds are eligible for tax deductions under Section 80C of the Income Tax Act, up to a limit of ₹1.5 lakh annually. The returns, however, are subject to Long Term Capital Gains (LTCG) tax if the gains exceed ₹1 lakh in a financial year, taxed at 10%.
Yes, ELSS Funds come with a mandatory lock-in period of 3 years, the shortest among tax-saving investment options under Section 80C. This lock-in period applies to each SIP installment separately.
No, ELSS Funds have a lock-in period of 3 years from the date of investment. This means you cannot sell or redeem your investment before this period ends. After the lock-in period, you can redeem freely.

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