+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 |
Top ELSS Mutual Funds FY 25 - 26
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2024 (%) Motilal Oswal Long Term Equity Fund Growth ₹50.3536
↓ -0.64 ₹4,515 -0.5 -1.1 -6.6 22 21.7 47.7 IDBI Equity Advantage Fund Growth ₹43.39
↑ 0.04 ₹485 9.7 15.1 16.9 20.8 10 JM Tax Gain Fund Growth ₹50.3947
↑ 0.01 ₹224 3.7 7.1 0.4 19.1 19.3 29 BNP Paribas Long Term Equity Fund (ELSS) Growth ₹99.4721
↓ -0.15 ₹935 5.2 6.2 2.2 18.2 16.4 23.6 Baroda Pioneer ELSS 96 Growth ₹68.6676
↑ 0.33 ₹210 -6.1 -3.5 17.6 16.7 11.6 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 4 Dec 25 Research Highlights & Commentary of 5 Funds showcased
Commentary Motilal Oswal Long Term Equity Fund IDBI Equity Advantage Fund JM Tax Gain Fund BNP Paribas Long Term Equity Fund (ELSS) Baroda Pioneer ELSS 96 Point 1 Highest AUM (₹4,515 Cr). Lower mid AUM (₹485 Cr). Bottom quartile AUM (₹224 Cr). Upper mid AUM (₹935 Cr). Bottom quartile AUM (₹210 Cr). Point 2 Established history (10+ yrs). Established history (12+ yrs). Established history (17+ yrs). Oldest track record among peers (19 yrs). Established history (10+ yrs). Point 3 Not Rated. Top rated. Rating: 3★ (upper mid). Rating: 3★ (lower mid). Not Rated. 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: 21.70% (top quartile). 5Y return: 9.97% (bottom quartile). 5Y return: 19.33% (upper mid). 5Y return: 16.42% (lower mid). 5Y return: 11.62% (bottom quartile). Point 6 3Y return: 22.04% (top quartile). 3Y return: 20.84% (upper mid). 3Y return: 19.07% (lower mid). 3Y return: 18.18% (bottom quartile). 3Y return: 16.70% (bottom quartile). Point 7 1Y return: -6.55% (bottom quartile). 1Y return: 16.92% (upper mid). 1Y return: 0.38% (bottom quartile). 1Y return: 2.15% (lower mid). 1Y return: 17.56% (top quartile). Point 8 Alpha: -2.71 (bottom quartile). Alpha: 1.78 (upper mid). Alpha: -3.62 (bottom quartile). Alpha: -1.09 (lower mid). Alpha: 5.69 (top quartile). Point 9 Sharpe: -0.08 (bottom quartile). Sharpe: 1.21 (upper mid). Sharpe: -0.23 (bottom quartile). Sharpe: -0.05 (lower mid). Sharpe: 2.51 (top quartile). Point 10 Information ratio: 0.75 (top quartile). Information ratio: -1.13 (bottom quartile). Information ratio: 0.71 (upper mid). Information ratio: 0.42 (lower mid). Information ratio: -0.09 (bottom quartile). Motilal Oswal Long Term Equity Fund
IDBI Equity Advantage Fund
JM Tax Gain Fund
BNP Paribas Long Term Equity Fund (ELSS)
Baroda Pioneer ELSS 96
*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 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 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 1. Motilal Oswal Long Term Equity Fund
Motilal Oswal Long Term Equity Fund
Growth Launch Date 21 Jan 15 NAV (04 Dec 25) ₹50.3536 ↓ -0.64 (-1.25 %) Net Assets (Cr) ₹4,515 on 31 Oct 25 Category Equity - ELSS AMC Motilal Oswal Asset Management Co. Ltd Rating Risk Moderately High Expense Ratio 1.65 Sharpe Ratio -0.08 Information Ratio 0.75 Alpha Ratio -2.71 Min Investment 500 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value Returns for Motilal Oswal Long Term Equity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Dec 25 Duration Returns 1 Month -3.6% 3 Month -0.5% 6 Month -1.1% 1 Year -6.6% 3 Year 22% 5 Year 21.7% 10 Year 15 Year Since launch 16.2% Historical performance (Yearly) on absolute basis
Year Returns 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% 2015 Fund Manager information for Motilal Oswal Long Term Equity Fund
Name Since Tenure Data below for Motilal Oswal Long Term Equity Fund as on 31 Oct 25
Equity Sector Allocation
Sector Value Asset Allocation
Asset Class Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 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 4 Dec 25 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 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 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 (04 Dec 25) ₹50.3947 ↑ 0.01 (0.02 %) Net Assets (Cr) ₹224 on 31 Oct 25 Category Equity - ELSS AMC JM Financial Asset Management Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 2.37 Sharpe Ratio -0.23 Information Ratio 0.71 Alpha Ratio -3.62 Min Investment 500 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value Returns for JM Tax Gain Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Dec 25 Duration Returns 1 Month 0.7% 3 Month 3.7% 6 Month 7.1% 1 Year 0.4% 3 Year 19.1% 5 Year 19.3% 10 Year 15 Year Since launch 9.6% Historical performance (Yearly) on absolute basis
Year Returns 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% 2015 -0.6% Fund Manager information for JM Tax Gain Fund
Name Since Tenure Data below for JM Tax Gain Fund as on 31 Oct 25
Equity Sector Allocation
Sector Value Asset Allocation
Asset Class Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 4. BNP Paribas Long Term Equity Fund (ELSS)
BNP Paribas Long Term Equity Fund (ELSS)
Growth Launch Date 5 Jan 06 NAV (04 Dec 25) ₹99.4721 ↓ -0.15 (-0.15 %) Net Assets (Cr) ₹935 on 31 Oct 25 Category Equity - ELSS AMC BNP Paribas Asset Mgmt India Pvt. Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 2.21 Sharpe Ratio -0.05 Information Ratio 0.42 Alpha Ratio -1.09 Min Investment 500 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 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 4 Dec 25 Duration Returns 1 Month 1.2% 3 Month 5.2% 6 Month 6.2% 1 Year 2.2% 3 Year 18.2% 5 Year 16.4% 10 Year 15 Year Since launch 12.2% Historical performance (Yearly) on absolute basis
Year Returns 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% 2015 7.7% Fund Manager information for BNP Paribas Long Term Equity Fund (ELSS)
Name Since Tenure Data below for BNP Paribas Long Term Equity Fund (ELSS) as on 31 Oct 25
Equity Sector Allocation
Sector Value Asset Allocation
Asset Class Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 5. 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 4 Dec 25 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 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 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
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?
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Research Highlights for Motilal Oswal Long Term Equity Fund