Best ELSS Funds
Compare best ELSS mutual funds for tax saving in India 2026. Top tax saver funds with high returns, ranked by 5-year performance.
Last updated: May 2026
Best ELSS Tax Saver Funds 2026
Save up to ₹46,800 in taxes annually + get equity returns. Just 3-year lock-in (lowest among 80C options).
| Fund Name | 3Y Returns | 5Y Returns | Expense Ratio | AUM | Risk Level |
|---|---|---|---|---|---|
| Quant ELSS Tax Saver BEST | 28.5% | 32.5% | 1.71% / 0.77% | ₹10,500 Cr | High |
| Mirae Asset ELSS | 21.8% | 22.8% | 1.51% / 0.59% | ₹22,000 Cr | Moderate |
| Parag Parikh Tax Saver | 23.5% | 22.5% | 1.78% / 0.79% | ₹4,800 Cr | Moderate |
| Bandhan ELSS Tax Saver | 20.2% | 20.5% | 1.79% / 0.79% | ₹6,300 Cr | Moderate |
| SBI Long Term Equity | 21.5% | 20.8% | 1.61% / 0.95% | ₹26,500 Cr | Moderate |
| HDFC ELSS Tax Saver | 19.8% | 19.2% | 1.50% / 1.10% | ₹14,200 Cr | Moderate |
| Canara Robeco ELSS | 18.5% | 18.5% | 1.66% / 0.62% | ₹8,100 Cr | Low-Moderate |
| Kotak ELSS Tax Saver | 20.5% | 19.8% | 1.66% / 0.66% | ₹5,200 Cr | Moderate |
| DSP ELSS Tax Saver | 19.2% | 19.5% | 1.74% / 0.79% | ₹13,800 Cr | Moderate |
| Nippon India ELSS Tax Saver | 20.8% | 20.5% | 1.62% / 1.18% | ₹12,500 Cr | Moderate |
💰 Tax Savings Calculation
If you invest ₹1.5 lakhs in ELSS:
✅ ELSS Advantages
- ✓ Section 80C deduction up to ₹1.5L
- ✓ Shortest lock-in (3 years vs 15 for PPF)
- ✓ Highest returns potential (12-15%+)
- ✓ Liquid after lock-in (vs PPF restrictions)
- ✓ Save ₹46,800 in taxes (30% bracket)
⚠ Considerations
- • Market-linked (returns can vary)
- • 12.5% LTCG tax above ₹1.25L gains
- • Each SIP locked for 3 years separately
- • Cannot switch funds during lock-in
- • Only available in old tax regime
How Mr. Joshi Saved ₹46,800 Tax + Built ₹38 Lakhs Wealth in 10 Years
Mr. Joshi, a 42-year-old chartered accountant from Pune, started investing the maximum ₹1.5L per year in ELSS funds in 2014. His tax savings every year: ₹46,800 (in 30% bracket). Over 10 years, total tax saved: ₹4.68 lakhs. But the bigger story is his ELSS portfolio. ₹15 lakhs invested over 10 years grew to ₹38 lakhs by 2024 — that is 13.5% CAGR. Total benefit: ₹23 lakhs growth + ₹4.68 lakhs tax savings = ₹27.7 lakhs from a ₹15 lakh investment. ELSS is the only Section 80C product that simultaneously gives you tax savings AND equity returns. Period. Everything else (PPF 7.1%, NSC 7.7%, FD 6.5%) is interest-based.
Our Honest Recommendation
What We Recommend
Top picks: Mirae Asset Tax Saver, Quant Tax Plan, Parag Parikh Tax Saver. Avoid sectoral or thematic ELSS — go for diversified equity ELSS only. 3-year lock-in is shortest in 80C basket. Always pick Direct + Growth option.
Written by
Priya Sharma
Frequently Asked Questions
Which is the best ELSS fund in India 2026?
Quant ELSS Tax Saver leads with 32.5% 5-year returns. For consistent performers, Mirae Asset ELSS (22.8%) and Parag Parikh Tax Saver (22.5%) are excellent. For risk-averse investors, Canara Robeco ELSS offers stable 18.5% returns.
How much can I save in tax through ELSS?
Investing ₹1.5 lakh in ELSS saves: ₹7,800 (5% bracket), ₹31,200 (20% bracket), or ₹46,800 (30% bracket) in taxes. Plus you get equity returns of 12-15% on your investment.
What is the lock-in period for ELSS?
3 years from each investment date. For SIP, each monthly installment locks for 3 years. For lumpsum, entire amount locks for 3 years. Shortest among all 80C options (PPF has 15 years, NSC 5 years).
Can I invest more than ₹1.5L in ELSS?
Yes, but tax benefits cap at ₹1.5L. Excess investment grows as regular equity fund. However, ELSS is not the best fund for non-tax-saving purposes - consider regular equity funds for amounts above ₹1.5L.
ELSS vs PPF - which is better?
For higher returns: ELSS (12-15% vs 7.1% PPF). For safety: PPF (govt-backed). For long horizons (15+ years): both work. For shorter (3-5 years): only ELSS. Most experts recommend 60% ELSS + 40% PPF mix.
Disclaimer: Information on this page is for educational purposes only. Rates, fees, and features are based on publicly available data as of May 2026 and may change. Please verify with respective providers before making decisions. We are not affiliated with any of the products listed.