Tax-saving mutual funds, also known as Equity-Linked Saving Schemes (ELSS), are a great way for investors in India to save on their taxes while also growing their wealth. These funds invest primarily in equities and have a lock-in period of three years, which means that the invested amount cannot be withdrawn before that period.
Here are some of the best tax-saving mutual funds in India:
1. Axis Long-Term Equity Fund
This fund has a consistent track record of delivering strong returns over the long term. It has a diversified portfolio of large-cap, mid-cap and small-cap stocks.
2. HDFC Tax Saver Fund
This fund has a track record of delivering high returns over the long term. It invests primarily in large-cap stocks and has a low-cost structure, making it a great option for investors.
3. ICICI Prudential Tax Plan
This fund has a diversified portfolio of stocks across different sectors and market capitalization. It has a consistent track record of delivering strong returns and is a great option for long-term investors.
4. Kotak Tax Saver Fund
This fund has a diversified portfolio of stocks across different sectors and market capitalization. It has a consistent track record of delivering strong returns and is a great option for long-term investors.
5. Franklin India Taxshield
This fund has a consistent track record of delivering strong returns over the long term. It has a diversified portfolio of large-cap, mid-cap and small-cap stocks.
It’s important to note that past performance is not a guarantee of future performance and investors should conduct their own research and analysis before investing in any fund. It’s also crucial to consult with a financial advisor or tax expert before making any investment decisions.
In summary, tax-saving mutual funds are a great way for investors in India to save on their taxes while also growing their wealth. These funds invest primarily in equities and have a lock-in period of three years, which means that the invested amount cannot be withdrawn before that period. The above-mentioned funds are some of the best tax-saving mutual funds in India, but investors should conduct their own research and analysis before investing in any fund.
