+91-22-48913909ELSS vs Tax Saving FD
Equity Linked Savings Scheme (ELSS)
ELSS is the only Mutual Fund eligible for 80C deductions. It is a diversified equity mutual fund that offers tax deductions up to Rs. 1.5 lakhs annually under Section 80C of income tax Act (IT Act 1961).
Prior to the introduction of Feburary Budget 2018, its returns were completely tax-free. However, now it is subject to 10% long-term Capital Gains tax if your capital gains exceed Rs. 1 lakh after one year. Even after the 10% tax cut, ELSS has the potential to deliver superior returns compared to other tax-saving instruments. The perks of ELSS investments are not limited to the taxes saved. The Power of Compounding ensures that your investment is doubled if you invest for, say, 5 years (tenure of tax-saving FD). To add to that, the minimum lock-in period is only 3 years.
Tax Saving Fixed Deposits
Investing money in Fixed Deposits with banks allows individuals and HUFs to claim a tax deduction of up to Rs. 1,50,000 in a financial year. These deposits have a lock-in period of 5 years. You, however, cannot withdraw this deposit prematurely. But you can avail loans against your FDs at competitive rates. The interest earned on these deposits, however, is taxable marginal rate of tax (as per the tax bracket) of the individual.
Highlights of Tax Saver FD
Let us look at the key highlights of the tax saver FD -
- Only individuals and members of hindu undivided family (HUF) can invest in the tax saving FD scheme
- The minimum investment amount of the tax saver FD varies from Bank to bank
- The lock-in period of the tax saving FD is five years
- You can get tax deductions up to Rs. 1,50,000
- There is no provision for premature withdrawal
- You cannot apply for loan against these tax saver FD
- Investment in these tax saver FDs can be done in any private or public sector bank (except co-operative and rural banks)
- Investment made in Post Office Time Deposit for the period of over five years also qualifies as tax saving FD
- You can transfer the Post Office FD from one Post Office to another
- The interest earned from this type of FD is taxable and will be deducted from the source
- Tax saving deposit account can be opened individually as well as jointly.
- In case of a joint account, the tax benefit will be enjoyed by the first holder of the joint account
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ELSS vs FD - Comparison
Here is a quick overview of the of the differences between ELSS and Tax Saving FDs over various parameters:
| Parameter | FD | ELSS |
|---|---|---|
| Tenure | 5 Years Lock-in | 3 Years Lock-in |
| Returns | 7.00 - 8.00 % (Compounded Annually) | No Assured Divividend / Return as it market linked generally around 16 - 17% per annum |
| Min. Investment | Rs. 1000 | Rs. 500 |
| Max. Investment | No Upper Limit | No Upper Limit |
| Amount Eligible for Deduction under 80c | Rs. 1.5 Lakhs | Rs. 1.5 Lakhs |
| Taxation for Interest/return | Interest Taxable | Gains up to Rs. 1 lakh are free of tax. Tax at 10% applies to gains above Rs. 1 lakh |
| Safety/Ratings | Safe | Bit Risky |
| Liquidity | You cannot withdraw tax saving FD before 5 years | You may exit or withdraw ELSS after 3 years. |
| Online option | Not all banks offer an online facility to open an FD | One can start an ELSS online – as a lump sum or SIP |
Fund Selection Methodology used to find 5 funds
Top ELSS Mutual Funds FY 26 - 27
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2025 (%) Motilal Oswal Long Term Equity Fund Growth ₹56.8942
↓ -0.37 ₹4,862 4.8 15.4 13.2 22.2 16.8 -9.1 IDBI Equity Advantage Fund Growth ₹43.39
↑ 0.04 ₹485 9.7 15.1 16.9 20.8 10 JM Tax Gain Fund Growth ₹52.8875
↓ -0.25 ₹232 11.2 10.5 11.6 16.9 14.9 2.5 Baroda Pioneer ELSS 96 Growth ₹68.6676
↑ 0.33 ₹210 -6.1 -3.5 17.6 16.7 11.6 BNP Paribas Long Term Equity Fund (ELSS) Growth ₹102.665
↓ -0.37 ₹897 7.8 4.7 9 16.4 12.2 4.8 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 14 Aug 26 Research Highlights & Commentary of 5 Funds showcased
Commentary Motilal Oswal Long Term Equity Fund IDBI Equity Advantage Fund JM Tax Gain Fund Baroda Pioneer ELSS 96 BNP Paribas Long Term Equity Fund (ELSS) Point 1 Highest AUM (₹4,862 Cr). Lower mid AUM (₹485 Cr). Bottom quartile AUM (₹232 Cr). Bottom quartile AUM (₹210 Cr). Upper mid AUM (₹897 Cr). Point 2 Established history (11+ yrs). Established history (12+ yrs). Established history (18+ yrs). Established history (11+ yrs). Oldest track record among peers (20 yrs). Point 3 Not Rated. Top rated. Rating: 3★ (upper mid). Not Rated. Rating: 3★ (lower mid). Point 4 Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Point 5 5Y return: 16.75% (top quartile). 5Y return: 9.97% (bottom quartile). 5Y return: 14.85% (upper mid). 5Y return: 11.62% (bottom quartile). 5Y return: 12.23% (lower mid). Point 6 3Y return: 22.19% (top quartile). 3Y return: 20.84% (upper mid). 3Y return: 16.87% (lower mid). 3Y return: 16.70% (bottom quartile). 3Y return: 16.40% (bottom quartile). Point 7 1Y return: 13.15% (lower mid). 1Y return: 16.92% (upper mid). 1Y return: 11.64% (bottom quartile). 1Y return: 17.56% (top quartile). 1Y return: 9.00% (bottom quartile). Point 8 Alpha: 6.27 (top quartile). Alpha: 1.78 (bottom quartile). Alpha: 4.31 (lower mid). Alpha: 5.69 (upper mid). Alpha: 2.78 (bottom quartile). Point 9 Sharpe: 0.02 (lower mid). Sharpe: 1.21 (upper mid). Sharpe: -0.11 (bottom quartile). Sharpe: 2.51 (top quartile). Sharpe: -0.15 (bottom quartile). Point 10 Information ratio: 0.76 (top quartile). Information ratio: -1.13 (bottom quartile). Information ratio: 0.50 (lower mid). Information ratio: -0.09 (bottom quartile). Information ratio: 0.58 (upper mid). Motilal Oswal Long Term Equity Fund
IDBI Equity Advantage Fund
JM Tax Gain Fund
Baroda Pioneer ELSS 96
BNP Paribas Long Term Equity Fund (ELSS)
*Below is the list of funds having AUM between 100 - 15000 Crore & having fund age of 3 Years of above. Based on 3 Year Performance.
(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. Below is the key information for Motilal Oswal Long Term Equity Fund Returns up to 1 year are on The Scheme will seek to invest predominantly in a diversified portfolio of equity and equity related instruments with the objective to provide investors with opportunities for capital appreciation and income along with the benefit of income-tax deduction(under section 80C of the Income-tax Act, 1961) on their investments. Investments in this scheme would be subject to a statutory lock-in of 3 years from the date of allotment to be eligible for income-tax benefits under Section 80C. There can be no assurance that the investment objective under the scheme will be realized. Research Highlights for IDBI Equity Advantage Fund Below is the key information for IDBI Equity Advantage Fund Returns up to 1 year are on 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. Research Highlights for JM Tax Gain Fund Below is the key information for JM Tax Gain Fund Returns up to 1 year are on The main objective of the scheme is to provide the investor long term capital growth as also tax benefit under section 80C of the Income Tax Act, 1961. Research Highlights for Baroda Pioneer ELSS 96 Below is the key information for Baroda Pioneer ELSS 96 Returns up to 1 year are on The investment objective of the Scheme is to generate long-term capital growth from a diversified and actively managed portfolio of equity and equity related securities along with income tax rebate, as may be prevalent fromtime to time. However, there can be no assurance that the investment objective of the Scheme will be achieved. The Scheme does not guarantee / indicate any returns. Research Highlights for BNP Paribas Long Term Equity Fund (ELSS) Below is the key information for BNP Paribas Long Term Equity Fund (ELSS) Returns up to 1 year are on 1. Motilal Oswal Long Term Equity Fund
Motilal Oswal Long Term Equity Fund
Growth Launch Date 21 Jan 15 NAV (14 Aug 26) ₹56.8942 ↓ -0.37 (-0.64 %) Net Assets (Cr) ₹4,862 on 30 Jun 26 Category Equity - ELSS AMC Motilal Oswal Asset Management Co. Ltd Rating Risk Moderately High Expense Ratio 1.65 Sharpe Ratio 0.02 Information Ratio 0.76 Alpha Ratio 6.27 Min Investment 500 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Jul 21 ₹10,000 31 Jul 22 ₹9,920 31 Jul 23 ₹12,253 31 Jul 24 ₹19,527 31 Jul 25 ₹20,258 31 Jul 26 ₹21,303 Returns for Motilal Oswal Long Term Equity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Aug 26 Duration Returns 1 Month 3.8% 3 Month 4.8% 6 Month 15.4% 1 Year 13.2% 3 Year 22.2% 5 Year 16.8% 10 Year 15 Year Since launch 16.2% Historical performance (Yearly) on absolute basis
Year Returns 2025 -9.1% 2024 47.7% 2023 37% 2022 1.8% 2021 32.1% 2020 8.8% 2019 13.2% 2018 -8.7% 2017 44% 2016 12.5% Fund Manager information for Motilal Oswal Long Term Equity Fund
Name Since Tenure Varun Sharma 3 Jul 26 0.08 Yr. Ajay Khandelwal 11 Dec 23 2.64 Yr. Ankit Agarwal 16 Mar 26 0.38 Yr. Rakesh Shetty 22 Nov 22 3.69 Yr. Data below for Motilal Oswal Long Term Equity Fund as on 30 Jun 26
Equity Sector Allocation
Sector Value Industrials 26.3% Financial Services 24.52% Consumer Cyclical 16.25% Basic Materials 14.86% Technology 13.21% Health Care 4.14% Asset Allocation
Asset Class Value Cash 0.73% Equity 99.27% Top Securities Holdings / Portfolio
Name Holding Value Quantity Multi Commodity Exchange of India Ltd (Financial Services)
Equity, Since 29 Feb 24 | MCX6% ₹275 Cr 968,520
↓ -172,342 Ather Energy Ltd (Consumer Cyclical)
Equity, Since 31 Oct 25 | ATHERENERG5% ₹227 Cr 1,990,789 Zen Technologies Ltd (Industrials)
Equity, Since 31 Dec 24 | ZENTEC4% ₹215 Cr 1,214,938
↓ -3,590 Apar Industries Ltd (Industrials)
Equity, Since 31 Dec 23 | APARINDS4% ₹205 Cr 130,439
↓ -3,561 OneSource Specialty Pharma Ltd (Healthcare)
Equity, Since 31 Jan 25 | ONESOURCE4% ₹201 Cr 1,221,228 PTC Industries Ltd (Industrials)
Equity, Since 30 Sep 24 | 5390064% ₹198 Cr 115,181 Gujarat Fluorochemicals Ltd Ordinary Shares (Basic Materials)
Equity, Since 28 Feb 23 | FLUOROCHEM4% ₹195 Cr 493,050
↑ 31,259 Suzlon Energy Ltd (Industrials)
Equity, Since 31 Jan 24 | SUZLON4% ₹191 Cr 32,483,092 Shriram Finance Ltd (Financial Services)
Equity, Since 31 Dec 25 | SHRIRAMFIN4% ₹180 Cr 1,725,541 Billionbrains Garage Ventures Ltd (Financial Services)
Equity, Since 30 Nov 25 | GROWW4% ₹177 Cr 8,751,187 2. IDBI Equity Advantage Fund
IDBI Equity Advantage Fund
Growth Launch Date 10 Sep 13 NAV (28 Jul 23) ₹43.39 ↑ 0.04 (0.09 %) Net Assets (Cr) ₹485 on 30 Jun 23 Category Equity - ELSS AMC IDBI Asset Management Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 2.39 Sharpe Ratio 1.21 Information Ratio -1.13 Alpha Ratio 1.78 Min Investment 500 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value Returns for IDBI Equity Advantage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Aug 26 Duration Returns 1 Month 3.1% 3 Month 9.7% 6 Month 15.1% 1 Year 16.9% 3 Year 20.8% 5 Year 10% 10 Year 15 Year Since launch 16% Historical performance (Yearly) on absolute basis
Year Returns 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Fund Manager information for IDBI Equity Advantage Fund
Name Since Tenure Data below for IDBI Equity Advantage Fund as on 30 Jun 23
Equity Sector Allocation
Sector Value Asset Allocation
Asset Class Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 3. JM Tax Gain Fund
JM Tax Gain Fund
Growth Launch Date 31 Mar 08 NAV (14 Aug 26) ₹52.8875 ↓ -0.25 (-0.47 %) Net Assets (Cr) ₹232 on 30 Jun 26 Category Equity - ELSS AMC JM Financial Asset Management Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 2.37 Sharpe Ratio -0.11 Information Ratio 0.5 Alpha Ratio 4.31 Min Investment 500 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Jul 21 ₹10,000 31 Jul 22 ₹10,560 31 Jul 23 ₹12,857 31 Jul 24 ₹19,571 31 Jul 25 ₹18,435 31 Jul 26 ₹19,965 Returns for JM Tax Gain Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Aug 26 Duration Returns 1 Month 4.6% 3 Month 11.2% 6 Month 10.5% 1 Year 11.6% 3 Year 16.9% 5 Year 14.9% 10 Year 15 Year Since launch 9.5% Historical performance (Yearly) on absolute basis
Year Returns 2025 2.5% 2024 29% 2023 30.9% 2022 0.5% 2021 32.2% 2020 18.3% 2019 14.9% 2018 -4.6% 2017 42.6% 2016 5.2% Fund Manager information for JM Tax Gain Fund
Name Since Tenure Satish Ramanathan 1 Oct 24 1.83 Yr. Asit Bhandarkar 31 Dec 21 4.59 Yr. Ruchi Fozdar 4 Oct 24 1.82 Yr. Deepak Gupta 11 Apr 25 1.31 Yr. Data below for JM Tax Gain Fund as on 30 Jun 26
Equity Sector Allocation
Sector Value Financial Services 27.85% Consumer Cyclical 18.77% Technology 10.84% Industrials 10% Basic Materials 7.92% Health Care 7.91% Real Estate 3.85% Consumer Defensive 3.54% Energy 2.97% Communication Services 2.63% Utility 1.19% Asset Allocation
Asset Class Value Cash 2.53% Equity 97.47% Top Securities Holdings / Portfolio
Name Holding Value Quantity Syrma SGS Technology Ltd (Technology)
Equity, Since 31 May 25 | SYRMA4% ₹8 Cr 59,457 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 11 | HDFCBANK3% ₹8 Cr 98,262 Reliance Industries Ltd (Energy)
Equity, Since 30 Jun 25 | RELIANCE3% ₹7 Cr 53,400 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 22 | ICICIBANK3% ₹7 Cr 48,500 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Mar 24 | BHARTIARTL3% ₹6 Cr 32,950 Karur Vysya Bank Ltd (Financial Services)
Equity, Since 30 Apr 25 | 5900033% ₹6 Cr 199,000 Polycab India Ltd (Industrials)
Equity, Since 31 Jul 25 | POLYCAB3% ₹6 Cr 5,900 Wework India Management Ltd (Real Estate)
Equity, Since 31 Oct 25 | WEWORK2% ₹6 Cr 83,621 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Nov 10 | LT2% ₹6 Cr 13,672
↓ -1,275 Max Healthcare Institute Ltd Ordinary Shares (Healthcare)
Equity, Since 30 Apr 25 | MAXHEALTH2% ₹6 Cr 49,900 4. Baroda Pioneer ELSS 96
Baroda Pioneer ELSS 96
Growth Launch Date 2 Mar 15 NAV (11 Mar 22) ₹68.6676 ↑ 0.33 (0.48 %) Net Assets (Cr) ₹210 on 31 Jan 22 Category Equity - ELSS AMC Baroda Pioneer Asset Management Co. Ltd. Rating Risk Moderately High Expense Ratio 2.55 Sharpe Ratio 2.51 Information Ratio -0.09 Alpha Ratio 5.69 Min Investment 500 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value Returns for Baroda Pioneer ELSS 96
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Aug 26 Duration Returns 1 Month -3.9% 3 Month -6.1% 6 Month -3.5% 1 Year 17.6% 3 Year 16.7% 5 Year 11.6% 10 Year 15 Year Since launch 8.4% Historical performance (Yearly) on absolute basis
Year Returns 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Fund Manager information for Baroda Pioneer ELSS 96
Name Since Tenure Data below for Baroda Pioneer ELSS 96 as on 31 Jan 22
Equity Sector Allocation
Sector Value Asset Allocation
Asset Class Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 5. BNP Paribas Long Term Equity Fund (ELSS)
BNP Paribas Long Term Equity Fund (ELSS)
Growth Launch Date 5 Jan 06 NAV (14 Aug 26) ₹102.665 ↓ -0.37 (-0.36 %) Net Assets (Cr) ₹897 on 30 Jun 26 Category Equity - ELSS AMC BNP Paribas Asset Mgmt India Pvt. Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 2.21 Sharpe Ratio -0.15 Information Ratio 0.58 Alpha Ratio 2.78 Min Investment 500 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Jul 21 ₹10,000 31 Jul 22 ₹10,148 31 Jul 23 ₹11,674 31 Jul 24 ₹16,605 31 Jul 25 ₹16,796 31 Jul 26 ₹17,912 Returns for BNP Paribas Long Term Equity Fund (ELSS)
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Aug 26 Duration Returns 1 Month 4.1% 3 Month 7.8% 6 Month 4.7% 1 Year 9% 3 Year 16.4% 5 Year 12.2% 10 Year 15 Year Since launch 12% Historical performance (Yearly) on absolute basis
Year Returns 2025 4.8% 2024 23.6% 2023 31.3% 2022 -2.1% 2021 23.6% 2020 17.8% 2019 14.3% 2018 -9.3% 2017 42.3% 2016 -6.6% Fund Manager information for BNP Paribas Long Term Equity Fund (ELSS)
Name Since Tenure Silky Jain 1 Jul 26 0.08 Yr. Yash Mehta 1 May 26 0.25 Yr. Data below for BNP Paribas Long Term Equity Fund (ELSS) as on 30 Jun 26
Equity Sector Allocation
Sector Value Financial Services 29.83% Consumer Cyclical 15.89% Industrials 14.15% Basic Materials 9.41% Technology 6.81% Health Care 6.63% Energy 5.11% Consumer Defensive 4.03% Utility 3.08% Communication Services 2.48% Asset Allocation
Asset Class Value Cash 2.55% Equity 97.42% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 08 | HDFCBANK4% ₹36 Cr 450,000
↓ -100,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 12 | ICICIBANK4% ₹34 Cr 250,000 State Bank of India (Financial Services)
Equity, Since 31 Mar 22 | SBIN4% ₹34 Cr 330,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 18 | RELIANCE3% ₹31 Cr 240,000
↓ -41,800 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Apr 20 | LT3% ₹29 Cr 70,000
↑ 5,000 Titan Co Ltd (Consumer Cyclical)
Equity, Since 31 May 25 | TITAN3% ₹24 Cr 55,000 Bharat Heavy Electricals Ltd (Industrials)
Equity, Since 30 Nov 24 | 5001033% ₹24 Cr 580,000
↓ -121,626 Navin Fluorine International Ltd (Basic Materials)
Equity, Since 31 Jul 24 | NAVINFLUOR3% ₹24 Cr 31,031
↓ -654 Radico Khaitan Ltd (Consumer Defensive)
Equity, Since 31 Jan 25 | RADICO3% ₹23 Cr 59,011
↓ -989 Hitachi Energy India Ltd Ordinary Shares (Industrials)
Equity, Since 31 Aug 23 | POWERINDIA3% ₹23 Cr 6,500
↓ -2,266
Should you Invest in ELSS or Tax saving FDs?
Before getting into new investment ventures, people consider a lot of things. Age, investment horizon and risk appetite are a few of the important factors. People who want dual benefits of wealth growth and tax benefits prefer ELSS. For instance, new investors with a long investment horizon and higher risk appetite find ELSS a sensible option. People nearing retirement can invest in tax saving FDs as they tend to have low risks and guaranteed returns over long term (5 year or above atleast).
How to Invest in ELSS Online?
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
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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Research Highlights for Motilal Oswal Long Term Equity Fund