Tax Savings

Top Tax Saving Mutual Fund in India 2022


Tax Saving Mutual funds or ELSS offer higher returns compared to regular saving schemes. You get to save Income tax under section 80 C of the IT act by investing in ELSS. Get a maximum amount of 1.5 lakhs tax deduction by investing in an ELSS tax-saving mutual fund and avail of the benefits of the shortest lock-in period.

Before you go ahead and invest your funds in ELSS tax-saving mutual funds, get familiarized with ELSS. ELSS investments are made in stock. They, therefore, carry higher risks. They don’t offer guaranteed returns like usual investment schemes. However, it’s no secret that stocks offer higher returns over a longer time. Hence, ELSS tax-saving instruments have the potential to earn better returns. Further, ELSS offer the shortest lock-in period of as low as 3 years. Investments covered under 80C have lock-in periods of 10-15 years. ELSS with a cap of 5-7 years offers beautiful returns.

Everyone should make use of the tax deduction scheme by investing in ELSS tax-saving mutual funds. The beautiful thing about today’s informative world is that you can benefit from people’s knowledge. You don’t need to be a pro-investor to pick safe rewarding investment tools. Choose and invest amongst these 7 best-performing tax-saving mutual funds and reap bounty benefits from them.

  1. Quant Tax Plan

Quant Tax plan is an ELSS mutual fund scheme by Quant Mutual Funds. It has been successfully offering maximum returns ever since its launch in 2013. A major part of the fund is invested in energy, material sectors, consumer staples, financial segments and services. It tracks the NIFTY500 total return index and has doubled the invested money in it every 2 years.

Quant tax direct plan has a fund size of 2127 Crores. Its top holdings include Ambuja Cements, State Bank of India, ITC Ltd, Adani Ports, Reliance Industries Ltd and others. Ever since its launch, the direct plan has offered 21.94% average annual returns.

  1. Mirae Asset Tax saver fund

Mirae Tax Saver fund has been in the market for more than 6 years and has Rs 13546 crores of assets under management. It has stood true to investors’ expectations with its consistent returns. The central focus of investment is majorly in the healthcare, automobile and technology sectors. The major holdings of the fund lie in HDFC Bank Ltd, ICICI Bank Ltd, Reliance Industry, Axis Bank, Infosys Ltd and others.

Mirae Asset Tax Saver fund offers 19.79% average annual returns ever since its launch.

  1. HDFC Tax Saver Fund

HDFC Tax saver fund is a rewarding ELSS tax-saving mutual fund from HDFC Mutual Funds. It has a fund size of Rs. 10,066 Crore under Asset Management and its top holdings are Hindustan Aeronautics, Bharti Airtel Ltd, ICICI Bank Ltd, HDFC Bank Ltd and State Bank of India. The investments are major in the healthcare, energy, and automobile sectors along with the financial and technology sectors.

HDFC Tax saver fund was launched in 2013 and offers 13.63% average annual returns consistently.

  1. IDFC Tax Advantage fund

IDFC Tax Advantage direct-plan is in the market for more than 9 years. It is an ELSS Tax saving instrument part of IDFC Mutual fund plans. It has Rs 3986 crores of fund assets under management with its top holdings in Reliance Ltd, Infosys Ltd, State Bank of India, HDFC Bank and ICICI Bank. The materials, technology and healthcare sectors are prominent investment sectors by this tax saving fund and have a slight inclination towards automobile and financial sectors.

IDFC Tax Advantage fund has offered 17.96% average annual returns since its launch time.

  1. Canara Robeco Equity Tax saver fund

Canara Robeco Equity tax saver fund is as old as other ELSS tax saving tools. It was launched back in 2013 and ever since then, it has Rs 4407 Crore of Assets under management. The fund invests primarily in the automobile, capital goods, and healthcare sectors; however, the technology and financial sectors are less explored. The top holding of funds is in ICICI Bank Ltd, HDFC Bank Ltd, Axis Bank Ltd, Infosys Ltd and reliance Ltd.

Canara Robeco tax saver fund offers 15.91% average annual returns and is above average at coping with losses in a falling market.

  1. Tata India Tax Saving Fund

Tata India Tax Saving fund is an ELSS Tax Saving mutual fund scheme by TATA Mutual fund. It was launched in 2014 and since then it manages assets worth Rs 3191 crore under management. The ELSS fund holds major holdings in ICICI Bank, HDFC Bank, Infosys, State Bank of India and Reliance Ltd. The major investments of the fund are in Capital goods, energy and healthcare sectors. It can sail par in a falling market and is a good ELSS tax-saving mutual fund.

The Tata India Tax Saving fund has consistently delivered 17.21% average annual returns.

  1. Axis Long-term Equity Fund

Axis Long term equity fund is a part of Axis mutual funds ELSS Tax saving plan. It has Rs 31,624 crore of assets under management with its major investments in chemical, technology and healthcare sectors. The major holdings of the fund lie in Bajaj Finance, Avenue Supermarts, Kotak Mahindra, Tata Consultancy and Nestle India.

Axis Long term Equity fund is comparatively less consistent when it comes to regular returns. It offers 17.58% average annual returns with a low coping mechanism in a falling market.

The following ELSS tax-saving mutual funds are selected based on 5 parameters. These parameters are consistency, downside risk, asset size, outperformance and mean rolling returns. These tax saving instruments offer generous returns compared to regular saving schemes like 5 years fixed deposits, PPF, NSC and others. Whether you are an avid investor or someone who wants to build safe saving instruments, ELSS tax saving tools should be on your investment list. Avail the advantage of tax deduction up to 1.5 lakhs today by investing in ELSS tax-saving mutual funds.

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