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Best ELSS Funds to Invest in 2024 for Tax-Savvy Investors


Last Updated on December 1, 2023 by Sumitha

Best ELSS Funds to Invest in 2024

Investors navigating the complex landscape of financial instruments understand the pivotal role tax implications play in shaping their financial health. Equity-Linked Savings Schemes (ELSS) emerge as a compelling option for those seeking to build wealth while minimising tax liabilities. Unlike traditional tax-saving schemes such as Public Provident Funds (PPF) and National Savings Certificates (NSCs), ELSS funds venture into the dynamic realm of stocks.

Section 80C of the Income Tax Act allows individuals to claim a tax deduction of up to ₹1.5 lakhs by investing in specified instruments, including ELSS. This presents a unique opportunity for investors to grow their wealth and enjoy tax savings. If you aim to optimize your tax strategy in the upcoming financial year, exploring these top-performing ELSS funds should be on your agenda.

The ELSS Investment Landscape:

Investing in ELSS comes with a lock-in period of three years, during which selling your investments is restricted. However, additional investments can be made at any time. After the lock-in period, any income and profits realized are treated as long-term capital gains (LTCG) and taxed at a reasonable rate of 10 percent if the returns exceed ₹1 lakh.

Choosing the right ELSS fund amidst the plethora of options can be challenging. While past performance, reflected in 10-year returns, is crucial, investors should also consider various other parameters. Let’s delve into the top 9 ELSS funds that boast impressive returns and align with your tax-saving goals.

  1. Quant Tax Plan (Quant Mutual Fund): A stellar performer with a remarkable 10-year return of 25.25%.
  2. Bank of India Tax Advantage Fund (Bank of India Mutual Fund): Consistently strong with a 10-year return of 19.10%.
  3. Bandhan ELSS Tax Saver Fund (Bandhan Mutual Fund): A robust performer, offering a 10-year return of 19.03%.
  4. DSP Tax Saver Fund (DSP Mutual Fund): A reliable choice with a decade-long return of 18.84%.
  5. JM ELSS Tax Saver Fund (JM Mutual Fund): Sustained excellence with an impressive 10-year return of 18.75%.
  6. Kotak ELSS Tax Saver Fund (Kotak Mahindra Mutual Fund): Solid performance reflected in a 10-year return of 18.63%.
  7. Invesco India ELSS Tax Saver Fund (Invesco Mutual Fund): A consistent performer with a 10-year return of 18.29%.
  8. Canara Robeco ELSS Tax Saver Fund (Canara Robeco Mutual Fund): Offering stability with a 10-year return of 17.26%.
  9. SBI Long-Term Equity Fund (SBI Mutual Fund): A reliable choice with a commendable 10-year return of 16.87%.

Why ELSS for Novice Investors:

ELSS funds serve as an excellent entry point, especially for those new to the world of equity investing. Here’s how ELSS funds can address common challenges faced by novice investors:

  1. Mitigating Market Volatility: The mandatory lock-in period discourages impulsive decisions based on short-term market fluctuations, fostering a long-term perspective.
  2. Encouraging Consistent Investment: Systematic Investment Plans (SIPs) facilitate regular investing, a crucial aspect for compounding and achieving long-term financial goals.
  3. Harnessing Compounding: Initiating investments early in ELSS funds capitalizes on the power of compounding, significantly enhancing overall returns over an extended period.
  4. Accessing Equity Exposure: ELSS funds allow investors to enter the equity market, exploring the potential for higher returns than traditional fixed-income instruments.
  5. Tax Advantages: ELSS investments come with tax benefits under Section 80C, providing an additional incentive for investors to build wealth while minimizing tax liabilities.


ELSS funds serve as a valuable gateway to equity markets for individuals new to investing, helping them overcome challenges and potentially enjoy the benefits of long-term wealth creation. The combination of tax advantages, compulsory lock-in periods, and exposure to equity makes ELSS a powerful instrument for constructing a robust financial future. As we look ahead to 2024, these 9 ELSS funds stand out as compelling choices for investors seeking to optimize their tax-saving and wealth-building strategies.


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