ELSS Funds with Highest Returns

ELSS (Equity Linked Savings Scheme) is a type of mutual fund that invests primarily in equities and offers tax deductions of up to ₹1.5 lakh per year under Section 80C of the Income Tax Act. It has a mandatory 3-year lock-in period.

As of 2025, Quant ELSS Tax Saver Fund and Mirae Asset Tax Saver Fund are among the highest-returning ELSS mutual funds, with 3-year CAGR returns exceeding 20%. However, returns vary based on market conditions.

Yes, ELSS has the potential to generate higher long-term returns compared to PPF, but it also carries higher risk. ELSS is suitable for investors with a moderate to high-risk appetite and long investment horizon.

 No, ELSS investments are locked for 3 years. Each SIP installment is treated as a separate investment and will complete its lock-in individually.

Yes, you can invest in ELSS funds via SIP (Systematic Investment Plan). It helps in rupee cost averaging and maintaining investing discipline.

ELSS returns are subject to Long-Term Capital Gains (LTCG) tax. Gains above ₹1 lakh per financial year are taxed at 10% without indexation.

You can invest any amount, but the maximum tax-saving benefit is up to ₹1.5 lakh per financial year under Section 80C. Choose the investment amount based on your tax-saving needs and financial goals.

Funds like Canara Robeco Equity Tax Saver and Mirae Asset Tax Saver Fund are ideal for beginners due to consistent performance and relatively lower risk profiles.

ELSS funds are equity-oriented and carry market risk, but they tend to deliver strong long-term returns. A minimum horizon of 5–7 years is recommended to mitigate volatility.

Yes, but the switch is considered a redemption and reinvestment, triggering taxes and resetting the 3-year lock-in period for the new investment.