Top 3 Best Tax Saving ELSS Mutual Funds for 2025

Updated on August 8, 2025 , 7217 views

Best elss Funds or Equity Linked Savings Schemes (Tax Saving) are equity diversified Mutual Funds that majorly invest in equity-linked instruments (like shares and stocks) to provide Market-linked returns. Typically, 80% of the fund corpus is invested in equity and the remaining in debt instruments. Best ELSS funds are also known as the tax saving Mutual Funds as they offer tax benefits under Section 80C of the income tax Act. Moreover, the ELSS Mutual Funds are open-ended, which means that the investors can subscribe in these funds as and when they want. However, before Investing in these tax saving Mutual Funds, it is suggested to consider a list of best ELSS funds.

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Top 3 ELSS Funds To Invest In 2025

Fund	NAV	Net Assets (Cr)	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2024 (%)
Motilal Oswal Long Term Equity Fund Growth	₹50.3789 ↑ 0.23	₹4,506	9.7	6	3.2	24.5	25.1	47.7
DSP Tax Saver Fund Growth	₹135.8 ↑ 0.90	₹17,428	0.8	3.5	0	18.8	23.2	23.9
Nippon India Tax Saver Fund (ELSS) Growth	₹126.841 ↑ 0.97	₹15,623	4.3	7.2	0	17.3	23.4	17.6
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 11 Aug 25

Research Highlights & Commentary of 3 Funds showcased

Commentary	Motilal Oswal Long Term Equity Fund	DSP Tax Saver Fund	Nippon India Tax Saver Fund (ELSS)
Point 1	Bottom quartile AUM (₹4,506 Cr).	Highest AUM (₹17,428 Cr).	Lower mid AUM (₹15,623 Cr).
Point 2	Established history (10+ yrs).	Established history (18+ yrs).	Oldest track record among peers (19 yrs).
Point 3	Not Rated.	Top rated.	Rating: 3★ (lower mid).
Point 4	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: Moderately High.
Point 5	5Y return: 25.13% (upper mid).	5Y return: 23.16% (bottom quartile).	5Y return: 23.39% (lower mid).
Point 6	3Y return: 24.54% (upper mid).	3Y return: 18.78% (lower mid).	3Y return: 17.30% (bottom quartile).
Point 7	1Y return: 3.23% (upper mid).	1Y return: 0.02% (lower mid).	1Y return: -0.03% (bottom quartile).
Point 8	Alpha: 6.93 (upper mid).	Alpha: 2.27 (lower mid).	Alpha: -1.27 (bottom quartile).
Point 9	Sharpe: 0.26 (upper mid).	Sharpe: 0.16 (lower mid).	Sharpe: -0.06 (bottom quartile).
Point 10	Information ratio: 1.02 (upper mid).	Information ratio: 0.83 (lower mid).	Information ratio: 0.43 (bottom quartile).

Motilal Oswal Long Term Equity Fund

Bottom quartile AUM (₹4,506 Cr).
Established history (10+ yrs).
Not Rated.
Risk profile: Moderately High.
5Y return: 25.13% (upper mid).
3Y return: 24.54% (upper mid).
1Y return: 3.23% (upper mid).
Alpha: 6.93 (upper mid).
Sharpe: 0.26 (upper mid).
Information ratio: 1.02 (upper mid).

DSP Tax Saver Fund

Highest AUM (₹17,428 Cr).
Established history (18+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 23.16% (bottom quartile).
3Y return: 18.78% (lower mid).
1Y return: 0.02% (lower mid).
Alpha: 2.27 (lower mid).
Sharpe: 0.16 (lower mid).
Information ratio: 0.83 (lower mid).

Nippon India Tax Saver Fund (ELSS)

Lower mid AUM (₹15,623 Cr).
Oldest track record among peers (19 yrs).
Rating: 3★ (lower mid).
Risk profile: Moderately High.
5Y return: 23.39% (lower mid).
3Y return: 17.30% (bottom quartile).
1Y return: -0.03% (bottom quartile).
Alpha: -1.27 (bottom quartile).
Sharpe: -0.06 (bottom quartile).
Information ratio: 0.43 (bottom quartile).

1. 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.

Research Highlights for Motilal Oswal Long Term Equity Fund

Bottom quartile AUM (₹4,506 Cr).
Established history (10+ yrs).
Not Rated.
Risk profile: Moderately High.
5Y return: 25.13% (upper mid).
3Y return: 24.54% (upper mid).
1Y return: 3.23% (lower mid).
Alpha: 6.93 (upper mid).
Sharpe: 0.26 (upper mid).
Information ratio: 1.02 (bottom quartile).
Higher exposure to Industrials vs peer median.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~99%).
Largest holding Eternal Ltd (~5.3%).

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 (11 Aug 25)	₹50.3789 ↑ 0.23 (0.45 %)
Net Assets (Cr)	₹4,506 on 30 Jun 25
Category	Equity - ELSS
AMC	Motilal Oswal Asset Management Co. Ltd
Rating	Not Rated
Risk	Moderately High
Expense Ratio	0.74
Sharpe Ratio	0.26
Information Ratio	1.02
Alpha Ratio	6.93
Min Investment	500
Min SIP Investment	500
Exit Load	NIL

Growth of 10,000 investment over the years.

Date	Value
31 Jul 20	₹10,000
31 Jul 21	₹15,917
31 Jul 22	₹15,790
31 Jul 23	₹19,504
31 Jul 24	₹31,082
31 Jul 25	₹32,246

Motilal Oswal Long Term Equity Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹570,326.
Net Profit of ₹270,326 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 11 Aug 25

Duration	Returns
1 Month	-4.8%
3 Month	9.7%
6 Month	6%
1 Year	3.2%
3 Year	24.5%
5 Year	25.1%
10 Year
15 Year
Since launch	16.5%

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
Ajay Khandelwal	11 Dec 23	1.64 Yr.
Rakesh Shetty	22 Nov 22	2.69 Yr.
Atul Mehra	1 Oct 24	0.83 Yr.

Data below for Motilal Oswal Long Term Equity Fund as on 30 Jun 25

Equity Sector Allocation

Sector	Value
Industrials	35.64%
Financial Services	20.78%
Consumer Cyclical	18.73%
Technology	10.72%
Basic Materials	5.55%
Real Estate	3.88%
Health Care	3.27%
Communication Services	0.61%

Asset Allocation

Asset Class	Value
Cash	0.81%
Equity	99.19%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Eternal Ltd (Consumer Cyclical) Equity, Since 31 Oct 23 \| 543320	5%	₹237 Cr	8,970,581 ↓ -953,111
Multi Commodity Exchange of India Ltd (Financial Services) Equity, Since 29 Feb 24 \| MCX	5%	₹222 Cr	248,438 ↑ 13,355
Trent Ltd (Consumer Cyclical) Equity, Since 31 Aug 22 \| 500251	5%	₹214 Cr	344,266 ↓ -80,994
Bharat Dynamics Ltd Ordinary Shares (Industrials) Equity, Since 31 Dec 23 \| BDL	5%	₹205 Cr	1,056,315
Kaynes Technology India Ltd (Industrials) Equity, Since 30 Jun 23 \| KAYNES	4%	₹181 Cr	297,751
Prestige Estates Projects Ltd (Real Estate) Equity, Since 31 Oct 23 \| PRESTIGE	4%	₹175 Cr	1,055,205
Suzlon Energy Ltd (Industrials) Equity, Since 31 Jan 24 \| SUZLON	4%	₹167 Cr	24,702,337
Bharat Electronics Ltd (Industrials) Equity, Since 30 Apr 24 \| BEL	4%	₹166 Cr	3,950,000
Amber Enterprises India Ltd Ordinary Shares (Consumer Cyclical) Equity, Since 31 Mar 24 \| AMBER	4%	₹163 Cr	240,350
Waaree Energies Ltd (Technology) Equity, Since 31 Oct 24 \| 544277	3%	₹153 Cr	487,045 ↑ 28,725

2. SBI Magnum Tax Gain Fund

To deliver the benefit of investment in a portfolio of equity shares, while offering deduction on such investment made in the scheme under section 80C of the Income-tax Act, 1961. It also seeks to distribute income periodically depending on distributable surplus. Investments in this scheme would be subject to a statutory lock-in of 3 years from the date of allotment to avail Section 80C benefits.

Research Highlights for SBI Magnum Tax Gain Fund

Highest AUM (₹30,616 Cr).
Established history (18+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 24.94% (lower mid).
3Y return: 23.74% (lower mid).
1Y return: -1.66% (bottom quartile).
Alpha: 0.00 (bottom quartile).
Sharpe: -0.02 (bottom quartile).
Information ratio: 2.04 (upper mid).
Top sector: Financial Services.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~94%).
High-quality debt (AAA/AA ~100%).
Largest holding HDFC Bank Ltd (~9.3%).

Below is the key information for SBI Magnum Tax Gain Fund

SBI Magnum Tax Gain Fund Growth
Launch Date	7 May 07
NAV (11 Aug 25)	₹428.68 ↑ 2.50 (0.59 %)
Net Assets (Cr)	₹30,616 on 30 Jun 25
Category	Equity - ELSS
AMC	SBI Funds Management Private Limited
Rating	☆☆
Risk	Moderately High
Expense Ratio	1.72
Sharpe Ratio	-0.02
Information Ratio	2.04
Alpha Ratio	0
Min Investment	500
Min SIP Investment	500
Exit Load	NIL

Growth of 10,000 investment over the years.

Date	Value
31 Jul 20	₹10,000
31 Jul 21	₹15,015
31 Jul 22	₹16,025
31 Jul 23	₹20,617
31 Jul 24	₹32,306
31 Jul 25	₹31,530

SBI Magnum Tax Gain Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹556,833.
Net Profit of ₹256,833 Invest Now

Returns for SBI Magnum 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 11 Aug 25

Duration	Returns
1 Month	-4.4%
3 Month	3%
6 Month	2.8%
1 Year	-1.7%
3 Year	23.7%
5 Year	24.9%
10 Year
15 Year
Since launch	12.3%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	27.7%
2023	40%
2022	6.9%
2021	31%
2020	18.9%
2019	4%
2018	-8.3%
2017	33%
2016	2.1%
2015	3.2%

Fund Manager information for SBI Magnum Tax Gain Fund

Name	Since	Tenure
Dinesh Balachandran	10 Sep 16	8.89 Yr.

Data below for SBI Magnum Tax Gain Fund as on 30 Jun 25

Equity Sector Allocation

Sector	Value
Financial Services	28.38%
Technology	9.8%
Basic Materials	9.58%
Energy	9.52%
Consumer Cyclical	8.7%
Industrials	8.15%
Health Care	7.37%
Utility	4.84%
Consumer Defensive	4.46%
Communication Services	2.01%
Real Estate	1.06%

Asset Allocation

Asset Class	Value
Cash	6%
Equity	93.88%
Debt	0.13%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Bank Ltd (Financial Services) Equity, Since 30 Jun 07 \| HDFCBANK	9%	₹2,861 Cr	14,293,253
Reliance Industries Ltd (Energy) Equity, Since 30 Apr 06 \| RELIANCE	6%	₹1,692 Cr	11,275,148
ICICI Bank Ltd (Financial Services) Equity, Since 31 Jan 17 \| 532174	4%	₹1,072 Cr	7,416,237
Tata Steel Ltd (Basic Materials) Equity, Since 31 Oct 21 \| TATASTEEL	3%	₹991 Cr	62,000,000
Cipla Ltd (Healthcare) Equity, Since 31 Jul 18 \| 500087	3%	₹918 Cr	6,098,542
ITC Ltd (Consumer Defensive) Equity, Since 29 Feb 12 \| ITC	3%	₹892 Cr	21,414,825
Torrent Power Ltd (Utilities) Equity, Since 31 Jul 19 \| 532779	3%	₹823 Cr	5,610,813
Mahindra & Mahindra Ltd (Consumer Cyclical) Equity, Since 31 Dec 16 \| M&M	3%	₹801 Cr	2,515,083
Kotak Mahindra Bank Ltd (Financial Services) Equity, Since 31 Dec 23 \| KOTAKBANK	3%	₹790 Cr	3,650,000
Axis Bank Ltd (Financial Services) Equity, Since 30 Sep 11 \| 532215	3%	₹776 Cr	6,473,332

3. HDFC Tax Saver Fund

The fund plans to provide long term growth of capital.

Research Highlights for HDFC Tax Saver Fund

Lower mid AUM (₹16,908 Cr).
Oldest track record among peers (29 yrs).
Rating: 2★ (lower mid).
Risk profile: Moderately High.
5Y return: 24.88% (bottom quartile).
3Y return: 21.41% (bottom quartile).
1Y return: 4.71% (upper mid).
Alpha: 2.56 (lower mid).
Sharpe: 0.22 (lower mid).
Information ratio: 1.35 (lower mid).
Higher exposure to Financial Services vs peer median.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~92%).
High-quality debt (AAA/AA ~100%).
Largest holding HDFC Bank Ltd (~9.8%).

Below is the key information for HDFC Tax Saver Fund

HDFC Tax Saver Fund Growth
Launch Date	31 Mar 96
NAV (11 Aug 25)	₹1,388.95 ↑ 9.90 (0.72 %)
Net Assets (Cr)	₹16,908 on 30 Jun 25
Category	Equity - ELSS
AMC	HDFC Asset Management Company Limited
Rating	☆☆
Risk	Moderately High
Expense Ratio	1.75
Sharpe Ratio	0.22
Information Ratio	1.35
Alpha Ratio	2.56
Min Investment	500
Min SIP Investment	500
Exit Load	NIL

Growth of 10,000 investment over the years.

Date	Value
31 Jul 20	₹10,000
31 Jul 21	₹14,861
31 Jul 22	₹16,842
31 Jul 23	₹20,755
31 Jul 24	₹30,205
31 Jul 25	₹31,268

HDFC Tax Saver Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹556,833.
Net Profit of ₹256,833 Invest Now

Returns for HDFC Tax Saver Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 11 Aug 25

Duration	Returns
1 Month	-3.2%
3 Month	2.2%
6 Month	5.4%
1 Year	4.7%
3 Year	21.4%
5 Year	24.9%
10 Year
15 Year
Since launch

Historical performance (Yearly) on absolute basis

Year	Returns
2024	21.3%
2023	33.2%
2022	10.5%
2021	35.3%
2020	5.8%
2019	3.7%
2018	-10.9%
2017	38.7%
2016	7.6%
2015	-6.2%

Fund Manager information for HDFC Tax Saver Fund

Name	Since	Tenure
Roshi Jain	13 Jan 22	3.55 Yr.
Dhruv Muchhal	22 Jun 23	2.11 Yr.

Data below for HDFC Tax Saver Fund as on 30 Jun 25

Equity Sector Allocation

Sector	Value
Financial Services	41.29%
Consumer Cyclical	15.83%
Health Care	9.08%
Technology	5.84%
Basic Materials	5.69%
Industrials	5.54%
Communication Services	4.74%
Utility	1.78%
Energy	1.19%
Consumer Defensive	0.84%
Real Estate	0.49%

Asset Allocation

Asset Class	Value
Cash	7.38%
Equity	92.31%
Debt	0.3%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Bank Ltd (Financial Services) Equity, Since 31 Mar 15 \| HDFCBANK	10%	₹1,661 Cr	8,300,000
ICICI Bank Ltd (Financial Services) Equity, Since 31 Oct 09 \| 532174	9%	₹1,590 Cr	11,000,000
Axis Bank Ltd (Financial Services) Equity, Since 31 Oct 18 \| 532215	9%	₹1,439 Cr	12,000,000
SBI Life Insurance Co Ltd (Financial Services) Equity, Since 31 Jan 22 \| SBILIFE	5%	₹827 Cr	4,500,000
Cipla Ltd (Healthcare) Equity, Since 31 Oct 09 \| 500087	5%	₹813 Cr	5,400,000
Kotak Mahindra Bank Ltd (Financial Services) Equity, Since 31 Dec 23 \| KOTAKBANK	4%	₹757 Cr	3,500,000
Bharti Airtel Ltd (Communication Services) Equity, Since 30 Nov 19 \| BHARTIARTL	4%	₹683 Cr	3,400,000
Maruti Suzuki India Ltd (Consumer Cyclical) Equity, Since 31 Jan 24 \| MARUTI	4%	₹682 Cr	550,000
HCL Technologies Ltd (Technology) Equity, Since 30 Sep 20 \| HCLTECH	3%	₹579 Cr	3,350,000
Hyundai Motor India Ltd (Consumer Cyclical) Equity, Since 31 Oct 24 \| HYUNDAI	3%	₹444 Cr	2,000,000

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.