Best SIP Plans for Long-Term Wealth in India (2025)
Looking to save tax while growing your wealth? ELSS (Equity Linked Saving Scheme) mutual funds are one of the best tax-saving investment options under Section 80C of the Income Tax Act, 1961. In this blog, we’ll explore the top-performing ELSS funds, their features, benefits, and how you can invest wisely.
✅ What is an ELSS Mutual Fund?
ELSS or Equity Linked Savings Scheme is a tax-saving mutual fund that invests primarily in equities and equity-related instruments.
- Comes with a lock-in period of 3 years (shortest among tax-saving options)
- Eligible for tax deduction of up to ₹1.5 lakh under Section 80C
- Offers potential for higher returns compared to traditional options like PPF or NSC
- Comes with a lock-in period of 3 years (shortest among tax-saving options)
🎯 Why Choose ELSS for Tax Saving?
Business News
🥇 Top 5 Best ELSS Mutual Funds in India (2025)
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5-Year CAGR
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AUM (₹ Cr)
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Expense Ratio
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🧠 Who Should Invest in ELSS?
ELSS is ideal for:
- Salaried individuals looking to save tax
- First-time mutual fund investors
- Those with a long-term wealth-building goal
- Investors willing to stay locked-in for at least 3 years
🛠️ How to Invest in ELSS?
You can invest via:
- ✅ Directly through AMC websites (lower expense ratio)
- ✅ Mutual fund platforms/apps like Groww, Coin, Kuvera, NJ Wealth
- ✅ Through a financial advisor or distributor
You can invest lump sum or via SIP (Systematic Investment Plan).
- Salaried individuals looking to save tax
📊 ELSS vs Other Tax Saving Options
⚠️ Things to Remember Before Investing
- ELSS returns are not guaranteed (market-linked)
- Lock-in of 3 years is mandatory
- Gains above ₹1 lakh are taxed at 10% LTCG
- Start early to leverage long-term compounding
- ELSS returns are not guaranteed (market-linked)
Frequently Asked Questions (FAQs)
You can claim a deduction of up to ₹1.5 lakh per year under Section 80C, potentially saving up to ₹46,800 annually.
No. Each SIP/lump sum installment is locked for 3 years from the date of investment.
Yes. Gains above ₹1 lakh are taxed at 10% under Long-Term Capital Gains (LTCG).
ELSS has higher return potential but comes with market risk. PPF is safer but offers fixed returns. Choose based on your risk profile.
Yes. You can start a SIP (Systematic Investment Plan) in any ELSS fund for disciplined investing.
🏁 Conclusion
- If you want to save tax and build wealth, ELSS mutual funds are a smart choice in 2025. With a short lock-in, high return potential, and SIP options, they offer the perfect blend of tax savings + growth.
- Always compare fund performance, check risk ratings, and invest according to your goals.
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