5 Best ELSS Mutual Funds Investments in India for 2026

Updated on February 7, 2026 , 62401 views

Best elss Funds or Equity Linked Savings Schemes 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 & have lock-in of 3 Years on investments.

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Fund Selection Methodology used to find 5 funds

Category: Equity
Sub-category: ELSS
AUM Range: 100 to 100000 Cr
Minimum fund age: 3 years
Sorted On : 3-year return (high to low)
No Of Funds: 5

Top 5 Best Performing ELSS Mutual Funds 2026 - 2027

*List for Funds based on Assets >= 100 Crore & Sorted on 3 Year CAGR Return.

1. 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 (₹32,609 Cr).
Established history (18+ yrs).
Rating: 2★ (lower mid).
Risk profile: Moderately High.
5Y return: 19.51% (top quartile).
3Y return: 24.07% (top quartile).
1Y return: 8.96% (bottom quartile).
Alpha: -0.86 (bottom quartile).
Sharpe: 0.10 (bottom quartile).
Information ratio: 1.95 (top quartile).
Top sector: Financial Services.
Higher exposure to Cash Equivalent (bond sector) vs peer median.
Equity-heavy allocation (~92%).
High-quality debt (AAA/AA ~100%).
Largest holding HDFC Bank Ltd (~8.7%).

Below is the key information for SBI Magnum Tax Gain Fund

SBI Magnum Tax Gain Fund Growth
Launch Date	7 May 07
NAV (09 Feb 26)	₹451.775 ↑ 4.79 (1.07 %)
Net Assets (Cr)	₹32,609 on 31 Dec 25
Category	Equity - ELSS
AMC	SBI Funds Management Private Limited
Rating	☆☆
Risk	Moderately High
Expense Ratio	1.6
Sharpe Ratio	0.1
Information Ratio	1.95
Alpha Ratio	-0.86
Min Investment	500
Min SIP Investment	500
Exit Load	NIL

Growth of 10,000 investment over the years.

Date	Value
31 Jan 21	₹10,000
31 Jan 22	₹13,136
31 Jan 23	₹13,737
31 Jan 24	₹20,630
31 Jan 25	₹24,199
31 Jan 26	₹25,870

SBI Magnum Tax Gain Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹493,520.
Net Profit of ₹193,520 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 9 Feb 26

Duration	Returns
1 Month	1.8%
3 Month	2.1%
6 Month	6%
1 Year	9%
3 Year	24.1%
5 Year	19.5%
10 Year
15 Year
Since launch	12.3%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	6.6%
2023	27.7%
2022	40%
2021	6.9%
2020	31%
2019	18.9%
2018	4%
2017	-8.3%
2016	33%
2015	2.1%

Fund Manager information for SBI Magnum Tax Gain Fund

Name	Since	Tenure
Milind Agrawal	1 Jan 26	0 Yr.

Data below for SBI Magnum Tax Gain Fund as on 31 Dec 25

Equity Sector Allocation

Sector	Value
Financial Services	29.37%
Consumer Cyclical	10.72%
Basic Materials	10.16%
Energy	9.2%
Technology	7.43%
Health Care	6.54%
Industrials	6.13%
Utility	4.09%
Consumer Defensive	4%
Communication Services	3.33%
Real Estate	1.09%

Asset Allocation

Asset Class	Value
Cash	7.83%
Equity	92.06%
Debt	0.12%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Bank Ltd (Financial Services) Equity, Since 30 Jun 07 \| HDFCBANK	9%	₹2,833 Cr	28,586,506
Reliance Industries Ltd (Energy) Equity, Since 30 Apr 06 \| RELIANCE	5%	₹1,771 Cr	11,275,148
Tata Steel Ltd (Basic Materials) Equity, Since 31 Oct 21 \| TATASTEEL	3%	₹1,116 Cr	62,000,000
ICICI Bank Ltd (Financial Services) Equity, Since 31 Jan 17 \| 532174	3%	₹996 Cr	7,416,237
Mahindra & Mahindra Ltd (Consumer Cyclical) Equity, Since 31 Dec 16 \| M&M	3%	₹933 Cr	2,515,083
Cipla Ltd (Healthcare) Equity, Since 31 Jul 18 \| 500087	3%	₹922 Cr	6,098,542
State Bank of India (Financial Services) Equity, Since 31 May 06 \| SBIN	3%	₹917 Cr	9,335,639
ITC Ltd (Consumer Defensive) Equity, Since 29 Feb 12 \| ITC	3%	₹863 Cr	21,414,825
Mahindra & Mahindra Financial Services Ltd (Financial Services) Equity, Since 30 Nov 20 \| M&MFIN	3%	₹850 Cr	21,086,115
Axis Bank Ltd (Financial Services) Equity, Since 30 Sep 11 \| 532215	3%	₹822 Cr	6,473,332

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.

Research Highlights for Motilal Oswal Long Term Equity Fund

Bottom quartile AUM (₹4,341 Cr).
Established history (11+ yrs).
Not Rated.
Risk profile: Moderately High.
5Y return: 17.81% (lower mid).
3Y return: 22.58% (upper mid).
1Y return: 5.90% (bottom quartile).
Alpha: -16.15 (bottom quartile).
Sharpe: -0.43 (bottom quartile).
Information ratio: 0.53 (bottom quartile).
Top sector: Financial Services.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~97%).
Largest holding Multi Commodity Exchange of India Ltd (~6.6%).

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 (09 Feb 26)	₹50.1208 ↑ 1.04 (2.12 %)
Net Assets (Cr)	₹4,341 on 31 Dec 25
Category	Equity - ELSS
AMC	Motilal Oswal Asset Management Co. Ltd
Rating	Not Rated
Risk	Moderately High
Expense Ratio	1.65
Sharpe Ratio	-0.43
Information Ratio	0.53
Alpha Ratio	-16.15
Min Investment	500
Min SIP Investment	500
Exit Load	NIL

Growth of 10,000 investment over the years.

Date	Value
31 Jan 21	₹10,000
31 Jan 22	₹13,265
31 Jan 23	₹13,176
31 Jan 24	₹19,252
31 Jan 25	₹23,449
31 Jan 26	₹23,990

Motilal Oswal Long Term Equity Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹470,047.
Net Profit of ₹170,047 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 9 Feb 26

Duration	Returns
1 Month	1.4%
3 Month	-3.1%
6 Month	-0.1%
1 Year	5.9%
3 Year	22.6%
5 Year	17.8%
10 Year
15 Year
Since launch	15.7%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	-9.1%
2023	47.7%
2022	37%
2021	1.8%
2020	32.1%
2019	8.8%
2018	13.2%
2017	-8.7%
2016	44%
2015	12.5%

Fund Manager information for Motilal Oswal Long Term Equity Fund

Name	Since	Tenure
Ajay Khandelwal	11 Dec 23	2.06 Yr.
Rakesh Shetty	22 Nov 22	3.11 Yr.
Atul Mehra	1 Oct 24	1.25 Yr.

Data below for Motilal Oswal Long Term Equity Fund as on 31 Dec 25

Equity Sector Allocation

Sector	Value
Financial Services	28.84%
Industrials	23.25%
Consumer Cyclical	16.56%
Technology	10.56%
Basic Materials	8.31%
Real Estate	3.96%
Health Care	3.54%
Consumer Defensive	1.96%

Asset Allocation

Asset Class	Value
Cash	3.03%
Equity	96.97%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
Multi Commodity Exchange of India Ltd (Financial Services) Equity, Since 29 Feb 24 \| MCX	7%	₹289 Cr	259,208
Eternal Ltd (Consumer Cyclical) Equity, Since 31 Oct 23 \| 543320	5%	₹222 Cr	8,000,000 ↓ -970,581
Piramal Finance Ltd (Financial Services) Equity, Since 30 Sep 25 \| PIRAMALFIN	5%	₹212 Cr	1,288,233 ↑ 9,000
Muthoot Finance Ltd (Financial Services) Equity, Since 30 Jun 25 \| 533398	5%	₹208 Cr	546,874
PTC Industries Ltd (Industrials) Equity, Since 30 Sep 24 \| 539006	4%	₹186 Cr	100,321
One97 Communications Ltd (Technology) Equity, Since 30 Jun 25 \| 543396	4%	₹176 Cr	1,351,856 ↑ 94,889
Waaree Energies Ltd (Technology) Equity, Since 31 Oct 24 \| 544277	4%	₹173 Cr	583,979
Prestige Estates Projects Ltd (Real Estate) Equity, Since 31 Oct 23 \| PRESTIGE	4%	₹172 Cr	1,077,437
Amber Enterprises India Ltd Ordinary Shares (Consumer Cyclical) Equity, Since 31 Mar 24 \| AMBER	4%	₹165 Cr	259,006 ↑ 18,656
Apar Industries Ltd (Industrials) Equity, Since 31 Dec 23 \| APARINDS	4%	₹163 Cr	194,366 ↑ 9,736

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 (₹17,163 Cr).
Oldest track record among peers (29 yrs).
Rating: 2★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 19.42% (upper mid).
3Y return: 21.40% (lower mid).
1Y return: 11.01% (lower mid).
Alpha: 2.58 (top quartile).
Sharpe: 0.41 (upper mid).
Information ratio: 1.27 (upper mid).
Higher exposure to Financial Services vs peer median.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~98%).
High-quality debt (AAA/AA ~100%).
Largest holding HDFC Bank Ltd (~9.6%).

Below is the key information for HDFC Tax Saver Fund

HDFC Tax Saver Fund Growth
Launch Date	31 Mar 96
NAV (09 Feb 26)	₹1,452.06 ↑ 9.25 (0.64 %)
Net Assets (Cr)	₹17,163 on 31 Dec 25
Category	Equity - ELSS
AMC	HDFC Asset Management Company Limited
Rating	☆☆
Risk	Moderately High
Expense Ratio	1.7
Sharpe Ratio	0.41
Information Ratio	1.27
Alpha Ratio	2.58
Min Investment	500
Min SIP Investment	500
Exit Load	NIL

Growth of 10,000 investment over the years.

Date	Value
31 Jan 21	₹10,000
31 Jan 22	₹13,546
31 Jan 23	₹14,805
31 Jan 24	₹20,534
31 Jan 25	₹23,746
31 Jan 26	₹26,158

HDFC Tax Saver Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹493,520.
Net Profit of ₹193,520 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 9 Feb 26

Duration	Returns
1 Month	0.7%
3 Month	0.8%
6 Month	5.3%
1 Year	11%
3 Year	21.4%
5 Year	19.4%
10 Year
15 Year
Since launch

Historical performance (Yearly) on absolute basis

Year	Returns
2024	10.3%
2023	21.3%
2022	33.2%
2021	10.5%
2020	35.3%
2019	5.8%
2018	3.7%
2017	-10.9%
2016	38.7%
2015	7.6%

Fund Manager information for HDFC Tax Saver Fund

Name	Since	Tenure
Amar Kalkundrikar	8 Dec 25	0.06 Yr.
Dhruv Muchhal	22 Jun 23	2.53 Yr.

Data below for HDFC Tax Saver Fund as on 31 Dec 25

Equity Sector Allocation

Sector	Value
Financial Services	43.7%
Consumer Cyclical	16.35%
Health Care	7.39%
Technology	7.12%
Industrials	5.4%
Basic Materials	4.93%
Communication Services	4.55%
Consumer Defensive	3.78%
Energy	3.22%
Utility	1.54%

Asset Allocation

Asset Class	Value
Cash	1.72%
Equity	97.99%
Debt	0.3%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Bank Ltd (Financial Services) Equity, Since 31 Mar 15 \| HDFCBANK	10%	₹1,645 Cr	16,600,000
Axis Bank Ltd (Financial Services) Equity, Since 31 Oct 18 \| 532215	9%	₹1,523 Cr	12,000,000
ICICI Bank Ltd (Financial Services) Equity, Since 31 Oct 09 \| 532174	9%	₹1,477 Cr	11,000,000
Maruti Suzuki India Ltd (Consumer Cyclical) Equity, Since 31 Jan 24 \| MARUTI	5%	₹918 Cr	550,000
SBI Life Insurance Co Ltd (Financial Services) Equity, Since 31 Jan 22 \| SBILIFE	5%	₹916 Cr	4,500,000
Kotak Mahindra Bank Ltd (Financial Services) Equity, Since 31 Dec 23 \| KOTAKBANK	4%	₹770 Cr	3,500,000
Bharti Airtel Ltd (Communication Services) Equity, Since 30 Nov 19 \| BHARTIARTL	4%	₹716 Cr	3,400,000
State Bank of India (Financial Services) Equity, Since 31 Dec 06 \| SBIN	4%	₹688 Cr	7,000,000
HCL Technologies Ltd (Technology) Equity, Since 30 Sep 20 \| HCLTECH	3%	₹544 Cr	3,350,000
Hyundai Motor India Ltd (Consumer Cyclical) Equity, Since 31 Oct 24 \| HYUNDAI	3%	₹460 Cr	2,000,000

4. IDBI Equity Advantage Fund

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

Bottom quartile AUM (₹485 Cr).
Established history (12+ yrs).
Rating: 3★ (upper mid).
Risk profile: Moderately High.
5Y return: 9.97% (bottom quartile).
3Y return: 20.84% (bottom quartile).
1Y return: 16.92% (top quartile).
Alpha: 1.78 (upper mid).
Sharpe: 1.21 (top quartile).
Information ratio: -1.13 (bottom quartile).

Below is the key information for 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
31 Jan 21	₹10,000
31 Jan 22	₹12,897
31 Jan 23	₹12,807

IDBI Equity Advantage Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹385,859.
Net Profit of ₹85,859 Invest Now

Returns for IDBI Equity 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 9 Feb 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
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

5. DSP Tax Saver Fund

The primary investment objective of the Scheme is to seek to generate medium to long-term capital appreciation from a diversified portfolio that is substantially constituted of equity and equity related securities of corporates, and to enable investors to avail of a deduction from total income, as permitted under the Income Tax Act, 1961 from time to time.

Research Highlights for DSP Tax Saver Fund

Upper mid AUM (₹17,609 Cr).
Established history (19+ yrs).
Top rated.
Risk profile: Moderately High.
5Y return: 17.37% (bottom quartile).
3Y return: 20.64% (bottom quartile).
1Y return: 11.72% (upper mid).
Alpha: -0.15 (lower mid).
Sharpe: 0.16 (lower mid).
Information ratio: 0.96 (lower mid).
Top sector: Financial Services.
Top bond sector: Cash Equivalent.
Equity-heavy allocation (~99%).
Largest holding HDFC Bank Ltd (~7.0%).

Below is the key information for DSP Tax Saver Fund

DSP Tax Saver Fund Growth
Launch Date	18 Jan 07
NAV (09 Feb 26)	₹145.6 ↑ 2.00 (1.39 %)
Net Assets (Cr)	₹17,609 on 31 Dec 25
Category	Equity - ELSS
AMC	DSP BlackRock Invmt Managers Pvt. Ltd.
Rating	☆☆☆☆
Risk	Moderately High
Expense Ratio	1.64
Sharpe Ratio	0.16
Information Ratio	0.96
Alpha Ratio	-0.15
Min Investment	500
Min SIP Investment	500
Exit Load	NIL

Growth of 10,000 investment over the years.

Date	Value
31 Jan 21	₹10,000
31 Jan 22	₹13,776
31 Jan 23	₹13,899
31 Jan 24	₹18,731
31 Jan 25	₹21,867
31 Jan 26	₹23,983

DSP Tax Saver Fund SIP Returns

Total investment amount is ₹300,000
expected amount after 5 Years is ₹470,047.
Net Profit of ₹170,047 Invest Now

Returns for DSP 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 9 Feb 26

Duration	Returns
1 Month	1.4%
3 Month	3.1%
6 Month	7.9%
1 Year	11.7%
3 Year	20.6%
5 Year	17.4%
10 Year
15 Year
Since launch	15.1%

Historical performance (Yearly) on absolute basis

Year	Returns
2024	7.5%
2023	23.9%
2022	30%
2021	4.5%
2020	35.1%
2019	15%
2018	14.8%
2017	-7.6%
2016	36.3%
2015	11.3%

Fund Manager information for DSP Tax Saver Fund

Name	Since	Tenure
Rohit Singhania	16 Jul 15	10.47 Yr.

Data below for DSP Tax Saver Fund as on 31 Dec 25

Equity Sector Allocation

Sector	Value
Financial Services	39.01%
Consumer Cyclical	10.51%
Technology	9.44%
Health Care	8.65%
Basic Materials	7.63%
Energy	5.71%
Communication Services	4.95%
Industrials	4.78%
Consumer Defensive	4.35%
Utility	3.63%

Asset Allocation

Asset Class	Value
Cash	1.32%
Equity	98.68%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
HDFC Bank Ltd (Financial Services) Equity, Since 31 Jul 08 \| HDFCBANK	7%	₹1,225 Cr	12,357,996 ↑ 756,552
Axis Bank Ltd (Financial Services) Equity, Since 30 Nov 18 \| 532215	7%	₹1,216 Cr	9,581,056
State Bank of India (Financial Services) Equity, Since 30 Jun 20 \| SBIN	6%	₹979 Cr	9,966,720 ↓ -680,748
ICICI Bank Ltd (Financial Services) Equity, Since 31 Oct 16 \| 532174	6%	₹974 Cr	7,253,215 ↑ 83,926
Infosys Ltd (Technology) Equity, Since 31 Mar 12 \| INFY	5%	₹882 Cr	5,459,708 ↓ -1,158,515
Bharti Airtel Ltd (Communication Services) Equity, Since 31 Jul 19 \| BHARTIARTL	3%	₹566 Cr	2,687,715
Mahindra & Mahindra Ltd (Consumer Cyclical) Equity, Since 30 Nov 21 \| M&M	3%	₹523 Cr	1,408,898
Kotak Mahindra Bank Ltd (Financial Services) Equity, Since 31 Oct 22 \| KOTAKBANK	3%	₹499 Cr	2,268,385 ↓ -205,265
Tata Consultancy Services Ltd (Technology) Equity, Since 31 Oct 25 \| TCS	3%	₹474 Cr	1,477,947 ↑ 495,704
Larsen & Toubro Ltd (Industrials) Equity, Since 30 Jun 24 \| LT	2%	₹432 Cr	1,057,504 ↓ -10,564

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.