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Best Tax Saving Investments For 2024

Updated on June 12, 2024 , 9430 views

Looking for best tax saving investments? Don’t know how to save income tax? Tax saving can be easy if done in a correct manner. There are various smart ways to stay away from paying Taxes and save as much as possible. Generally, people indulge into Tax Planning when the financial year is about to end. But, does this ensure prudent investment planning? No! Investing in the early quarters of the financial year is a smarter approach instead. This ensures that you get time to plan your investment and avail the most out of it. Some of the tax saving investments include tax saving Mutual Funds ELSS, PPF, tax saving FD, NPS etc. a detailed list of tax saving investment options is mentioned below.

Some of the Best Investment Plan in India that are beneficial for tax saving include-

Tax-saving

Tax Saving ELSS Funds Or Equity Linked Savings Schemes

Tax saving is an ideal way of financial planning. ELSS Funds are tax saving schemes that are equity diversified and invest the major part of the fund corpus either in equities or equity-related instruments. Being Market-linked, equity-linked savings scheme or ELSS funds offer good returns. ELSS funds are tax saving Mutual Funds that offers tax deductions upto INR 1,50,000 under Section 80C of Income Tax Act.

As per the Budget 2018, ELSS would attract Long Term Capital Gains (LTCG). Investors would be taxed at 10% (with no indexation) under long term Capital Gain tax. Gains up to INR 1 lakh are free of tax. Tax at 10% applies to gains above INR 1 lakh.

Top 3 Tax Saving ELSS Funds 2024

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2023 (%)
BOI AXA Tax Advantage Fund Growth ₹170.4
↑ 1.90
₹1,29817.326.259.224.527.234.8
Motilal Oswal Long Term Equity Fund Growth ₹47.4766
↑ 0.66
₹3,40223.129.157.725.322.437
JM Tax Gain Fund Growth ₹47.2532
↑ 0.55
₹14120.626.348.623.422.330.9
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 14 Jun 24
*Above is the list of Top 3 Tax Saving ELSS Mutual Funds sorted on last 1 year performance and have Net Assets between 100 - 5000 Crore.

1. BOI AXA Tax Advantage Fund

The Scheme seeks to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities across all market capitalisations. The Scheme is in the nature of diversified multi-cap fund. The Scheme is not providing any assured or guaranteed returns.(There can be no assurance that the investment objectives of the Scheme will be realized.)

BOI AXA Tax Advantage Fund is a Equity - ELSS fund was launched on 25 Feb 09. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 20.4% since its launch.  Ranked 13 in ELSS category.  Return for 2023 was 34.8% , 2022 was -1.3% and 2021 was 41.5% .

Below is the key information for BOI AXA Tax Advantage Fund

BOI AXA Tax Advantage Fund
Growth
Launch Date 25 Feb 09
NAV (14 Jun 24) ₹170.4 ↑ 1.90   (1.13 %)
Net Assets (Cr) ₹1,298 on 30 Apr 24
Category Equity - ELSS
AMC BOI AXA Investment Mngrs Private Ltd
Rating
Risk Moderately High
Expense Ratio 2.49
Sharpe Ratio 3.02
Information Ratio 0.7
Alpha Ratio 8.56
Min Investment 500
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
31 May 19₹10,000
31 May 20₹9,392
31 May 21₹16,436
31 May 22₹17,299
31 May 23₹20,079
31 May 24₹30,939

BOI AXA Tax Advantage Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹598,181.
Net Profit of ₹298,181
Invest Now

Returns for BOI AXA Tax Advantage Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Jun 24

DurationReturns
1 Month 8.8%
3 Month 17.3%
6 Month 26.2%
1 Year 59.2%
3 Year 24.5%
5 Year 27.2%
10 Year
15 Year
Since launch 20.4%
Historical performance (Yearly) on absolute basis
YearReturns
2023 34.8%
2022 -1.3%
2021 41.5%
2020 31.2%
2019 14.6%
2018 -16.3%
2017 57.7%
2016 -1.2%
2015 2.1%
2014 44%
Fund Manager information for BOI AXA Tax Advantage Fund
NameSinceTenure
Alok Singh27 Apr 222.01 Yr.

Data below for BOI AXA Tax Advantage Fund as on 30 Apr 24

Equity Sector Allocation
SectorValue
Financial Services27%
Industrials16.43%
Basic Materials15.59%
Consumer Cyclical11.87%
Health Care6.38%
Energy6.29%
Technology4.49%
Utility4.19%
Consumer Defensive3.89%
Real Estate1.96%
Asset Allocation
Asset ClassValue
Cash1.87%
Equity98.09%
Debt0.04%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
State Bank of India (Financial Services)
Equity, Since 31 Oct 21 | SBIN
4%₹57 Cr695,000
↑ 35,000
Canara Bank (Financial Services)
Equity, Since 31 Aug 22 | 532483
4%₹46 Cr745,000
Vedanta Ltd (Basic Materials)
Equity, Since 31 Mar 24 | 500295
3%₹45 Cr1,134,000
↑ 214,000
Oil India Ltd (Energy)
Equity, Since 31 Mar 23 | OIL
3%₹44 Cr702,000
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 10 | HDFCBANK
3%₹39 Cr255,000
↓ -25,000
Reliance Industries Ltd (Energy)
Equity, Since 30 Nov 18 | RELIANCE
3%₹38 Cr130,000
Bank of Baroda (Financial Services)
Equity, Since 31 Oct 22 | 532134
3%₹36 Cr1,286,338
↑ 50,000
Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 31 Jul 23 | HAL
3%₹34 Cr86,000
NTPC Ltd (Utilities)
Equity, Since 30 Apr 22 | 532555
3%₹33 Cr920,000
HEG Ltd (Industrials)
Equity, Since 31 Dec 22 | HEG
2%₹31 Cr130,000

2. Motilal Oswal Long Term Equity Fund

(Erstwhile Motilal Oswal MOSt Focused Long Term Fund)

The investment objective of the Scheme is to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related instruments. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.

Motilal Oswal Long Term Equity Fund is a Equity - ELSS fund was launched on 21 Jan 15. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 18% since its launch.  Return for 2023 was 37% , 2022 was 1.8% and 2021 was 32.1% .

Below is the key information for Motilal Oswal Long Term Equity Fund

Motilal Oswal Long Term Equity Fund
Growth
Launch Date 21 Jan 15
NAV (14 Jun 24) ₹47.4766 ↑ 0.66   (1.42 %)
Net Assets (Cr) ₹3,402 on 30 Apr 24
Category Equity - ELSS
AMC Motilal Oswal Asset Management Co. Ltd
Rating Not Rated
Risk Moderately High
Expense Ratio 1.68
Sharpe Ratio 3.77
Information Ratio 0.85
Alpha Ratio 16.46
Min Investment 500
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
31 May 19₹10,000
31 May 20₹8,372
31 May 21₹13,529
31 May 22₹14,029
31 May 23₹16,827
31 May 24₹25,789

Motilal Oswal Long Term Equity Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹530,691.
Net Profit of ₹230,691
Invest Now

Returns for Motilal Oswal Long Term Equity Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Jun 24

DurationReturns
1 Month 9.5%
3 Month 23.1%
6 Month 29.1%
1 Year 57.7%
3 Year 25.3%
5 Year 22.4%
10 Year
15 Year
Since launch 18%
Historical performance (Yearly) on absolute basis
YearReturns
2023 37%
2022 1.8%
2021 32.1%
2020 8.8%
2019 13.2%
2018 -8.7%
2017 44%
2016 12.5%
2015
2014
Fund Manager information for Motilal Oswal Long Term Equity Fund
NameSinceTenure
Ajay Khandelwal11 Dec 230.39 Yr.
Niket Shah17 Oct 230.54 Yr.
Rakesh Shetty22 Nov 221.44 Yr.

Data below for Motilal Oswal Long Term Equity Fund as on 30 Apr 24

Equity Sector Allocation
SectorValue
Industrials28.51%
Financial Services24.03%
Consumer Cyclical19.1%
Health Care10.95%
Real Estate7.78%
Basic Materials4.73%
Technology2.51%
Communication Services0.93%
Asset Allocation
Asset ClassValue
Cash1.47%
Equity98.53%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Zomato Ltd (Consumer Cyclical)
Equity, Since 31 Oct 23 | 543320
7%₹242 Cr12,550,000
↓ -450,000
Trent Ltd (Consumer Cyclical)
Equity, Since 31 Aug 22 | 500251
6%₹209 Cr474,799
Jio Financial Services Ltd (Financial Services)
Equity, Since 31 Oct 23 | 543940
6%₹190 Cr5,051,957
↓ -675,000
Prestige Estates Projects Ltd (Real Estate)
Equity, Since 31 Oct 23 | PRESTIGE
5%₹159 Cr1,150,000
IndusInd Bank Ltd (Financial Services)
Equity, Since 31 Mar 23 | INDUSINDBK
4%₹152 Cr1,000,000
Global Health Ltd (Healthcare)
Equity, Since 30 Nov 22 | MEDANTA
4%₹145 Cr1,000,145
↓ -235,000
Kalyan Jewellers India Ltd (Consumer Cyclical)
Equity, Since 31 Oct 23 | KALYANKJIL
4%₹137 Cr3,296,932
ICICI Bank Ltd (Financial Services)
Equity, Since 30 Nov 18 | ICICIBANK
4%₹133 Cr1,160,000
↓ -10,000
Fortis Healthcare Ltd (Healthcare)
Equity, Since 31 Aug 21 | 532843
4%₹122 Cr2,775,000
Apar Industries Ltd (Industrials)
Equity, Since 31 Dec 23 | APARINDS
3%₹117 Cr148,305

3. JM Tax Gain Fund

The investment objective is to generate long-term capital growth from a diversified and actively managed portfolio of equity and equity related securities and to enable investors a deduction from total income, as permitted under the Income Tax Act, 1961 from time to time. However, there can be no assurance that the investment objectives of the Scheme will be realized. The Scheme does not guarantee/indicate any returns.

JM Tax Gain Fund is a Equity - ELSS fund was launched on 31 Mar 08. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 10.1% since its launch.  Ranked 18 in ELSS category.  Return for 2023 was 30.9% , 2022 was 0.5% and 2021 was 32.2% .

Below is the key information for JM Tax Gain Fund

JM Tax Gain Fund
Growth
Launch Date 31 Mar 08
NAV (14 Jun 24) ₹47.2532 ↑ 0.55   (1.17 %)
Net Assets (Cr) ₹141 on 30 Apr 24
Category Equity - ELSS
AMC JM Financial Asset Management Limited
Rating
Risk Moderately High
Expense Ratio 2.43
Sharpe Ratio 2.99
Information Ratio 0.58
Alpha Ratio 11.5
Min Investment 500
Min SIP Investment 500
Exit Load NIL

Growth of 10,000 investment over the years.

DateValue
31 May 19₹10,000
31 May 20₹8,150
31 May 21₹13,988
31 May 22₹15,059
31 May 23₹17,417
31 May 24₹25,266

JM Tax Gain Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹300,000
expected amount after 5 Years is ₹530,691.
Net Profit of ₹230,691
Invest Now

Returns for JM Tax Gain Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Jun 24

DurationReturns
1 Month 9.5%
3 Month 20.6%
6 Month 26.3%
1 Year 48.6%
3 Year 23.4%
5 Year 22.3%
10 Year
15 Year
Since launch 10.1%
Historical performance (Yearly) on absolute basis
YearReturns
2023 30.9%
2022 0.5%
2021 32.2%
2020 18.3%
2019 14.9%
2018 -4.6%
2017 42.6%
2016 5.2%
2015 -0.6%
2014 54.9%
Fund Manager information for JM Tax Gain Fund
NameSinceTenure
Asit Bhandarkar31 Dec 212.33 Yr.
Gurvinder Wasan1 Dec 221.41 Yr.
Chaitanya Choksi18 Jul 149.79 Yr.

Data below for JM Tax Gain Fund as on 30 Apr 24

Equity Sector Allocation
SectorValue
Industrials20.94%
Financial Services19.33%
Consumer Cyclical13.54%
Basic Materials12.91%
Technology11.61%
Consumer Defensive5.81%
Communication Services5.6%
Utility3.75%
Real Estate2.99%
Health Care2.66%
Asset Allocation
Asset ClassValue
Cash0.88%
Equity99.12%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 11 | HDFCBANK
4%₹6 Cr41,381
↓ -4,750
ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 22 | ICICIBANK
4%₹6 Cr50,975
↓ -10,000
Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Nov 10 | LT
4%₹6 Cr15,500
Power Finance Corp Ltd (Financial Services)
Equity, Since 30 Nov 22 | 532810
3%₹4 Cr89,125
Tata Motors Ltd Class A (Consumer Cyclical)
Equity, Since 31 Jul 23 | TATAMTRDVR
3%₹4 Cr57,500
State Bank of India (Financial Services)
Equity, Since 31 Aug 20 | SBIN
3%₹4 Cr45,400
Voltas Ltd (Industrials)
Equity, Since 31 Jan 24 | VOLTAS
3%₹4 Cr24,500
↑ 5,000
Cummins India Ltd (Industrials)
Equity, Since 31 Oct 21 | 500480
3%₹4 Cr11,000
↑ 1,683
Thomas Cook India Ltd (Consumer Cyclical)
Equity, Since 30 Sep 23 | THOMASCOOK
2%₹3 Cr170,537
Thermax Ltd (Industrials)
Equity, Since 31 Dec 23 | THERMAX
2%₹3 Cr7,400
↓ -500

PPF Or Public Provident Fund

PPF or Public Provident Fund is a tax-free investment option that is backed by the Central Government of India. PPF came into existence in 1968 by the Ministry of Finance. Public Provident Fund aims to provide financial security to people post-retirement. The government of India launched PPF in order to help people inculcate the habit of saving and also plan their retirement well in advance. PPF is one of the best tax saving investments as the interest earned on deposits are not taxable. Moreover, the investments are liable for tax deductions under section 80C of Income Tax Act.

Tax Saving FD Or Fixed Deposit

tax saving FD or Fixed Deposits are financial instruments that are provided by banks for a fixed period of time. The interest rate of FD varies from 4% to 8% (according to the investment tenure). Usually, it is seen that higher the period of investment higher is the rate of interest on FD and vice versa. Though FD is a tax saving and safe investment, the interest earned on them is fully taxable as per the Income Tax Act. Furthermore, if the rate of interest on FD is above INR 10,000, banks deduct a TDS @ 10% p.a.

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NPS Or National Pension Scheme

NPS or National Pension Scheme is a tax saving investment option formulated by the Central Government of India to help people save tax while saving for retirement. As per the National Pension Scheme, one can open a personal retirement account where they can save a pension corpus during their working life. Apart from Retirement planning, investments upto 50,000 under NPS are liable for deductions under section 80 CCD (1B). Under section 80C of Income Tax Act, tax deductions upto 1,50,000 are liable on investments in a National Pension Scheme. This makes NPS one of the best tax saving investments in India.

National Saving Certificate (NSC)

National Saving Certificate (NSC) is a good Tax Saving Scheme to invest in. NSC interest rates are set in the month of April every year. The current interest rate of NSC is 7.9% p.a. Investments up to INR 1,00,000 per year are eligible for IT rebate under the Section 80C of the Income Tax Act. You can invest in NSC through your local Post Office as well.

Employee Provident Fund (EPF)

Employee Provident Fund or EPF is typically deducted from the salary of an individual which includes 12% of their basic salary. The employer also contributes the similar percentage of which 3.7% goes to the EPF and the remaining 8.3% goes towards the pension fund. It is a defined benefit scheme with interest rates being set every year. The interest rate was 8.8% p.a. for the year 2015-2016. There is no tax at the time of making the investment in EPF. Also, the interest earned is also tax-free. At the time of retirement, individuals can withdraw the entire amount in the account.

ULIP Or Unit Linked Insurance Policy

Unit-linked insurance Policy is an insurance policy that works an insurance cover along with Offering market linked returns. Under a ULIP, some part of your investment is invested in Mutual Funds (Equity, Balanced or Debt fund) and the remaining is contributed towards your life cover. One can save tax by investing in ULIP under Sections 80C, 80CCC and 80D of the Income Tax Act. Moreover, the interests that are earned on your ULIP investment are tax-free. Also, under section 10 (10D), tax-free maturity benefits are available as well. When choosing an investment, people usually tend to choose it just to avail tax benefits. Ideally, the investors should look for certain factors before investing. Some of those include maximum tax saving, low-cost investment, substantial returns etc. So, understand the tax saving investments well and then invest.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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