ELSS: As the financial year draws to a close, most taxpayers prepare to complete their investments during January-March. During this period, most attention is focused on the tax savings available under Section 80C. Under Section 80C, investors receive a maximum tax deduction of up to Rs 1.5 lakh. If you’re also looking to save tax this financial year, tax-saving mutual funds or equity-linked savings schemes (ELSS) can be a good option.
Benefits and Risks
ELSS funds invest directly in stocks, so they carry a higher risk. Compared to traditional investment options like PPF or NSC, their returns are not guaranteed, and losses can occur in bad markets. However, they offer the potential for better returns in the long run. For example, over the past 10 years, the ELSS category has given an average return of 13.61%. The lock-in period for ELSS is only three years, which makes it different from other tax-saving options. In PPF, you can withdraw funds only after six years, while the lock-in period for NSC is five years.
📌 Also Read: 99% of People Do Not Know, Buying a Roadways Bus Ticket Automatically Provides Rs. 7.5 Lakh Insurance, Learn the Details
Top ELSS Funds to Invest in
ELSS investments offer a good opportunity for new investors to enter stocks. The mandatory three-year lock-in period allows investors to weather market fluctuations. Based on this, here are the top ELSS funds recommended for investors to invest in January 2026:
- Canara Robeco ELSS Tax Saver Fund – Stayed in the third quartile for the last 17 months.
- Mirae Asset ELSS Tax Saver Fund – In the second quartile for the last four months.
- Invesco India ELSS Tax Saver Fund – Recently ranked in the third quartile.
- DSP ELSS Tax Saver Fund – An Option with Good Return Potential
- Quant ELSS Tax Saver Fund – New Option
- Bank of India ELSS Tax Saver Fund – New Option
Investing in these funds not only saves tax but also gives investors the opportunity to earn better returns in the long run. According to experts, investing in ELSS should be done for at least five to seven years to take advantage of market fluctuations.
📌 Also Read: Savings Account Interest Rate: Bank's big decision - Savings account interest rates changed
Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.