- DSP BlackRock Tax Saver
- Birla Sun Life Tax Plan
- Axis Long Term Equity
Time is running out when it comes to investing in ELSS funds to save taxes for the current financial year–FY2016-17. The last date to invest for this financial year is 31st March. You can invest up to ₹1.5 lakh under Section 80C to save tax.
ELSS funds are tax-saving mutual funds that invest in the stock market. ELSS funds have the lowest lock-in period among all tax-saving investments. They tend to deliver higher returns over the long run as well. Plus, gains from ELSS fund investments are completely tax-free for the investor.
If you have figured out how much you need to invest in ELSS funds to save tax, pick from the following three options.
- DSP BlackRock Tax Saver – An average-risk tax-saving mutual fund that has given 24.32% returns over the past 3 years
- Birla Sun Life Tax Plan – A below average-risk tax-saving mutual fund that has given 22.08% returns over the past 3 years
- Axis Long Term Equity – A low-risk tax-saving mutual fund that has given 21.82% returns over the past 3 years
|Best tax-saving mutual funds for FY2016-17|
|ELSS fund||Risk grade||3-year returns||5-year returns|
|DSP BlackRock Tax Saver||Average||24.32%||20.50%|
|Axis Long Term Equity||Low||21.82%||21.72%|
|Birla Sun Life Tax Plan||Below-average||22.08%||19.00%|
|As on 6 March 2017 | Source: Value Research|