+91-22-48913909Why ELSS Over Other Tax Saving Investments
ELSS funds also known as Equity Linked Savings Scheme is an equity-diversified tax saving Mutual Fund that majorly invests its assets in equities or equity-linked instruments like stock markets. The ELSS Mutual Funds offer market-linked returns, which are volatile and are dependent on the market conditions.
However, financial advisors suggest Investing in ELSS funds for a long duration, as these ELSS Mutual funds generate best returns when invested for a longer duration. In the recent reports, it was seen that ELSS funds generated around 20%-30% returns when invested for 3 years, which is much more than the returns generated by other Mutual Funds.
Comparison Of ELSS & Other Tax Saving Investment Options
The comparison of ELSS and other tax saving is based on parameters like tenure, returns, eligibility for deduction under 80c, etc.
Let's have a look:
| Parameter | PPF | NSC | FD | ELSS |
|---|---|---|---|---|
| Tenure | 15 years | 6 years | 5 Years | 3 years |
| Returns | 7.60 % (Compounded Annually) | 7.60 % (Compounded Annually) | 7.00 - 8.00 % (Compounded Annually) | No Assured Divividend / Return as it market linked |
| Min. Investment | Rs. 500 | Rs. 100 | Rs. 1000 | Rs. 500 |
| Max. Investment | Rs. 1.5 Lakhs | No Upper Limit | No Upper Limit | No Upper Limit |
| Amount Eligible for Deduction under 80c | Rs. 1.5 Lakhs | Rs. 1.5 Lakhs | Rs. 1.5 Lakhs | Rs. 1.5 Lakhs |
| Taxation for Interest/return | Tax-Free | Interest Taxable | 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 | Safe | Safe | Risk |
Fund Selection Methodology used to find 5 funds
Top 5 ELSS Funds To Invest In 2026
Below is the list of Fund having Net Assets/AUM between 100 - 200 Crores.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2025 (%) IDBI Equity Advantage Fund Growth ₹43.39
↑ 0.04 ₹485 9.7 15.1 16.9 20.8 10 HDFC Long Term Advantage Fund Growth ₹595.168
↑ 0.28 ₹1,318 1.2 15.4 35.5 20.6 17.4 JM Tax Gain Fund Growth ₹45.386
↑ 1.66 ₹217 -7.9 -8 6.2 17.1 14 2.5 Baroda Pioneer ELSS 96 Growth ₹68.6676
↑ 0.33 ₹210 -6.1 -3.5 17.6 16.7 11.6 BOI AXA Tax Advantage Fund Growth ₹155.78
↑ 5.36 ₹1,384 -2 -1.5 10.1 16.5 14 -3.5 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Jul 23 Research Highlights & Commentary of 5 Funds showcased
Commentary IDBI Equity Advantage Fund HDFC Long Term Advantage Fund JM Tax Gain Fund Baroda Pioneer ELSS 96 BOI AXA Tax Advantage Fund Point 1 Lower mid AUM (₹485 Cr). Upper mid AUM (₹1,318 Cr). Bottom quartile AUM (₹217 Cr). Bottom quartile AUM (₹210 Cr). Highest AUM (₹1,384 Cr). Point 2 Established history (12+ yrs). Oldest track record among peers (25 yrs). Established history (18+ yrs). Established history (11+ yrs). Established history (17+ yrs). Point 3 Top rated. Rating: 3★ (upper mid). Rating: 3★ (lower mid). Not Rated. Rating: 3★ (bottom quartile). 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: 9.97% (bottom quartile). 5Y return: 17.39% (top quartile). 5Y return: 14.04% (lower mid). 5Y return: 11.62% (bottom quartile). 5Y return: 14.04% (upper mid). Point 6 3Y return: 20.84% (top quartile). 3Y return: 20.64% (upper mid). 3Y return: 17.09% (lower mid). 3Y return: 16.70% (bottom quartile). 3Y return: 16.51% (bottom quartile). Point 7 1Y return: 16.92% (lower mid). 1Y return: 35.51% (top quartile). 1Y return: 6.18% (bottom quartile). 1Y return: 17.56% (upper mid). 1Y return: 10.12% (bottom quartile). Point 8 Alpha: 1.78 (upper mid). Alpha: 1.75 (lower mid). Alpha: -4.18 (bottom quartile). Alpha: 5.69 (top quartile). Alpha: 0.34 (bottom quartile). Point 9 Sharpe: 1.21 (lower mid). Sharpe: 2.27 (upper mid). Sharpe: 0.59 (bottom quartile). Sharpe: 2.51 (top quartile). Sharpe: 0.92 (bottom quartile). Point 10 Information ratio: -1.13 (bottom quartile). Information ratio: -0.15 (bottom quartile). Information ratio: 0.22 (top quartile). Information ratio: -0.09 (lower mid). Information ratio: 0.10 (upper mid). IDBI Equity Advantage Fund
HDFC Long Term Advantage Fund
JM Tax Gain Fund
Baroda Pioneer ELSS 96
BOI AXA Tax Advantage Fund
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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. Below is the key information for IDBI Equity Advantage Fund Returns up to 1 year are on To generate long term capital appreciation from a portfolio that is predominantly in equity and equity related instruments Research Highlights for HDFC Long Term Advantage Fund Below is the key information for HDFC Long Term 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 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.) Research Highlights for BOI AXA Tax Advantage Fund Below is the key information for BOI AXA Tax Advantage Fund Returns up to 1 year are on 1. 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 Mar 21 ₹10,000 31 Mar 22 ₹12,052 31 Mar 23 ₹12,027 Returns for IDBI Equity Advantage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jul 23 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 2. HDFC Long Term Advantage Fund
HDFC Long Term Advantage Fund
Growth Launch Date 2 Jan 01 NAV (14 Jan 22) ₹595.168 ↑ 0.28 (0.05 %) Net Assets (Cr) ₹1,318 on 30 Nov 21 Category Equity - ELSS AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 2.25 Sharpe Ratio 2.27 Information Ratio -0.15 Alpha Ratio 1.75 Min Investment 500 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Mar 21 ₹10,000
Purchase not allowed Returns for HDFC Long Term Advantage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jul 23 Duration Returns 1 Month 4.4% 3 Month 1.2% 6 Month 15.4% 1 Year 35.5% 3 Year 20.6% 5 Year 17.4% 10 Year 15 Year Since launch 21.4% Historical performance (Yearly) on absolute basis
Year Returns 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Fund Manager information for HDFC Long Term Advantage Fund
Name Since Tenure Data below for HDFC Long Term Advantage Fund as on 30 Nov 21
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 (08 Apr 26) ₹45.386 ↑ 1.66 (3.80 %) Net Assets (Cr) ₹217 on 28 Feb 26 Category Equity - ELSS AMC JM Financial Asset Management Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 2.37 Sharpe Ratio 0.59 Information Ratio 0.22 Alpha Ratio -4.18 Min Investment 500 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Mar 21 ₹10,000 31 Mar 22 ₹12,128 31 Mar 23 ₹12,034 31 Mar 24 ₹17,400 31 Mar 25 ₹19,224 31 Mar 26 ₹18,165 Returns for JM Tax Gain Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jul 23 Duration Returns 1 Month -0.7% 3 Month -7.9% 6 Month -8% 1 Year 6.2% 3 Year 17.1% 5 Year 14% 10 Year 15 Year Since launch 8.8% 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 1.41 Yr. Asit Bhandarkar 31 Dec 21 4.16 Yr. Ruchi Fozdar 4 Oct 24 1.4 Yr. Deepak Gupta 11 Apr 25 0.89 Yr. Data below for JM Tax Gain Fund as on 28 Feb 26
Equity Sector Allocation
Sector Value Financial Services 28.74% Consumer Cyclical 16.59% Industrials 11.66% Technology 9.81% Basic Materials 9.25% Health Care 8.13% Consumer Defensive 3.8% Energy 3.43% Real Estate 3.21% Communication Services 2.85% Asset Allocation
Asset Class Value Cash 2.52% Equity 97.48% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 11 | HDFCBANK4% ₹9 Cr 98,262 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Nov 10 | LT4% ₹8 Cr 18,447
↓ -1,200 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 Karur Vysya Bank Ltd (Financial Services)
Equity, Since 30 Apr 25 | KARURVYSYA3% ₹6 Cr 199,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Mar 24 | BHARTIARTL3% ₹6 Cr 32,950 Lupin Ltd (Healthcare)
Equity, Since 31 May 25 | LUPIN3% ₹6 Cr 25,000 Travel Food Services Ltd (Consumer Cyclical)
Equity, Since 31 Jul 25 | TRAVELFOOD3% ₹6 Cr 45,598
↓ -4,000 Polycab India Ltd (Industrials)
Equity, Since 31 Jul 25 | POLYCAB3% ₹6 Cr 6,500 Vedanta Ltd (Basic Materials)
Equity, Since 31 Oct 25 | VEDL2% ₹5 Cr 75,500 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 31 Mar 21 ₹10,000 Returns for Baroda Pioneer ELSS 96
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jul 23 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. BOI AXA Tax Advantage Fund
BOI AXA Tax Advantage Fund
Growth Launch Date 25 Feb 09 NAV (08 Apr 26) ₹155.78 ↑ 5.36 (3.56 %) Net Assets (Cr) ₹1,384 on 28 Feb 26 Category Equity - ELSS AMC BOI AXA Investment Mngrs Private Ltd Rating ☆☆☆ Risk Moderately High Expense Ratio 2.09 Sharpe Ratio 0.92 Information Ratio 0.1 Alpha Ratio 0.34 Min Investment 500 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Mar 21 ₹10,000 31 Mar 22 ₹12,399 31 Mar 23 ₹12,357 31 Mar 24 ₹19,093 31 Mar 25 ₹19,073 31 Mar 26 ₹18,602 Returns for BOI AXA Tax Advantage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jul 23 Duration Returns 1 Month -0.6% 3 Month -2% 6 Month -1.5% 1 Year 10.1% 3 Year 16.5% 5 Year 14% 10 Year 15 Year Since launch 17.4% Historical performance (Yearly) on absolute basis
Year Returns 2025 -3.5% 2024 21.6% 2023 34.8% 2022 -1.3% 2021 41.5% 2020 31.2% 2019 14.6% 2018 -16.3% 2017 57.7% 2016 -1.2% Fund Manager information for BOI AXA Tax Advantage Fund
Name Since Tenure Alok Singh 27 Apr 22 3.84 Yr. Data below for BOI AXA Tax Advantage Fund as on 28 Feb 26
Equity Sector Allocation
Sector Value Financial Services 22.16% Industrials 16.61% Basic Materials 10.05% Consumer Cyclical 7.27% Consumer Defensive 7.16% Utility 5.51% Technology 3.94% Communication Services 3.19% Energy 2.27% Health Care 1.86% Real Estate 0.11% Asset Allocation
Asset Class Value Cash 18.39% Equity 80.13% Debt 1.48% Top Securities Holdings / Portfolio
Name Holding Value Quantity State Bank of India (Financial Services)
Equity, Since 31 Oct 21 | SBIN4% ₹56 Cr 470,000
↓ -194,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 18 | ICICIBANK3% ₹46 Cr 335,000
↓ -20,000 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 10 | HDFCBANK3% ₹45 Cr 510,000
↑ 72,468 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Sep 24 | BHARTIARTL3% ₹44 Cr 235,000 ITC Ltd (Consumer Defensive)
Equity, Since 30 Jun 25 | ITC3% ₹42 Cr 1,340,000
↑ 220,000 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 31 Jul 23 | HAL3% ₹41 Cr 105,000 NTPC Ltd (Utilities)
Equity, Since 30 Apr 22 | NTPC3% ₹36 Cr 955,000 Coromandel International Ltd (Basic Materials)
Equity, Since 31 Jan 23 | COROMANDEL3% ₹35 Cr 157,000 HEG Ltd (Industrials)
Equity, Since 31 Dec 22 | HEG2% ₹34 Cr 580,000 Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 30 Apr 25 | ADANIPORTS2% ₹33 Cr 214,000
How ELSS Better Than Other Tax Saving Investments?
There are various Tax Saving Investment options in India among which ELSS is one of the best options. How? Here are some of the reasons mentioned.
High Returns over Long-Term
The ELSS funds allocate the highest number of assets in stock market among other tax saving investments. So, these funds earn best inflation-beating returns amongst all. If invested for a longer duration, the rate of returns of ELSS can easily beat the returns of other traditional debt-oriented investments. Therefore, ELSS Mutual funds provide investors with the best of both worlds- high returns and tax benefits.
Shortest Lock-in Period
The ELSS Mutual Funds have a short lock-in period as compared to the traditional tax saving investment options. The lock-in period of ELSS funds is 3 years while that of PPF is 15 years and of NPS is until retirement. So, by investing in ELSS your money does not get locked for a longer duration and you can stop investing soon after the lock-in is over.
Highly Flexible Investment
The flexibility of ELSS Mutual Funds is much more than all other tax saving investments. Unlike traditional investments, there is no need of investing in only one type of option. ELSS funds enable you to diversify your Portfolio with different kinds of investments. Also, the investors can remain invested in these funds even after the lock-in period is over. So, once the lock-in is over, you can easily choose to remain invested or redeem as per your convenience.
Conclusion
In conclusion, here are a few tips for investors investing in ELSS Funds.
- Start investing in ELSS early
- Invest within your limits
- Do not choose dividend reinvestment
- Redeem slowly and gradually
- Invest via a SIP
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 IDBI Equity Advantage Fund