As investment channels go, any investor’s primary goal is to maximise profit. How does one do this? By saving as much as possible while you invest. Tax saving is a big deal when you make investments, and the best ELSS mutual funds help you.  Besides prospective gains, tax saving is an advantage, as amounts paid in tax may lower returns  significantly at times. Additionally, investors may be on the lookout for high liquidity with brief lock-in terms. Here as well, ELSS mutual funds come out on top.

What are ELSS Mutual Funds?

The best ELSS mutual funds are essentially mutual funds that you may invest in, with a large portion of capital being allocated to instruments linked to equity. Such funds, commonly known as schemes for saving tax, since you get tax deductions amounting to Rs. 1.5 lakh from your yearly taxable earnings, are safe, money-saving tools. According to Section 80C of the Indian Income Tax Act, saving tax is possible with ELSS mutual funds. If you want to open a Demat account to invest in equity directly, consider some of your asset allocation to ELSS mutual funds as well. Before you invest to save tax on these schemes, you should know the key features of the best performing ELSS mutual funds, and then choose from the best funds in 2023.

Features of ELSS Mutual Funds

The name says everything, and you can probably make out that ELSS (Equity Linked Savings Scheme) funds allocate a chunk of your money in equity-based assets. In current times, more and more people are attempting to combat inflation, aiming to save on tax. ELSS funds have become favourites with investors as a result of negative economic events. Here are some highlights (and perks) of ELSS funds:

• There is a lock-in period that is three years long.
• In an ELSS fund, at least 80% of your capital gets invested in equity-linked instruments or in equity directly.
• There is no maximum term of investment when you invest in the best ELSS mutual funds.
• Via the route of ELSS funds, investments are done in a diversified manner. Investments can be done across a range of market capitalisations, themes and sectors.
• The tax exemption you get by investing is based on tax rules under Section 80C of the Indian Income Tax Act (based on long-term capital gains taxation regulations). Long-term capital gains achieved on ELSS funds are taxable at 10%, but due to indexation, your tax can be reduced.
• You can choose to invest via the channel of SIP (with monthly investments) too.
• There exists no exit load or entry load.
• Professional and experienced fund managers take care of your investment to give you maximum earnings, and you can sit back and relax.

You may be thinking of a tempting upcoming IPO for investment, but spread your wealth and include an ELSS fund as well. Use Our ELSS Calculator to Estimate Your Potential Returns and Optimize Your Portfolio. Try it Now!

Invest in the Best Performing ELSS Mutual Funds

Here are some hand-picked ELSS mutual funds for your consideration in 2023:

Planning Investment and Taxation

ELSS funds are the perfect funds for you to invest in equity plus give you benefits as far as taxation is concerned. Since the majority of investors look to diversify portfolios through distributing capital in a variety of investment products, ELSS funds plus other financial instruments, like an upcoming IPO, may serve your financial goals. When you open a Demat account, you should be aware that there are fruitful ways to invest, other than in the famous stock markets.