If you fall in the 30% tax bracket (i.e. if you earn > Rs 10 lakhs p.a.), that’s how much you can save if you invest in Tax Saving Mutual Funds or popularly known as Equity Linked Savings Schemes ( ELSS Funds ) – That’s like Rs 45,000 of free money which you would have otherwise paid to the Government of India in taxes.
- If you earn between Rs 2.5 to 5 lakhs, your tax slab is 10% and you can save ~ Rs 15,000 in taxes
- If you earn between Rs 5 to 10 lakhs, your tax slab is 20% and you can save ~ Rs 30,000 in taxes
Based on our research, here are the top performing ELSS funds best suited for Tax Savings. Feel free to pick any that you wish to invest in.
|Name||3 years return (%)||5 years return (%)|
|Reliance Tax Saver Fund||36.9% p.a.||21.8% p.a.|
|ICICI Prudential Tax Plan||28.7% p.a.||18.1% p.a.|
|DSP BlackRock Tax Saver Fund||28.8% p.a.||15.9% p.a.|
|HDFC Long Term Advantage Fund||25.5% p.a.||16.6% p.a.|
|IDFC Tax Advantage Fund||26.7% p.a.||16.6% p.a.|
|BSE Sensex||21.4% p.a.||10.6% p.a.|