Are you on the hunt for the best ELSS mutual funds to invest in 2025 and save taxes? Look no further! ELSS Mutual Funds are an excellent choice for tax-saving investments, offering the added advantage of long-term wealth creation.
For the uninitiated, ELSS (Equity Linked Savings Scheme) is the only mutual fund category eligible for tax deductions under Section 80C of the Income Tax Act. You can invest up to ₹1.5 lakh annually in ELSS funds and claim the amount as a deduction from your taxable income. But here’s the catch: your investments will be locked in for 3 years, making them perfect for disciplined, long-term investors.
To make your decision easier, we’ve curated a list of the 10 Best ELSS Mutual Funds for 2025. These funds are evaluated based on their historical performance, ratings, and return potential.
Also Read: Post Office Monthly Income Scheme
1. Parag Parikh Tax Saver Fund
The Parag Parikh Tax Saver Fund is known for its consistent and reliable performance. It’s a top choice for investors who value stability and quality over short-term gains. This fund regularly ranks among the best elss mutual funds available out there.
| Tenure | Returns |
|---|---|
| 1 Year | 27.2% |
| 3 Years | 20.0% |
| 5 Years | 24.6% |
| 10 Years | Not Available |
Overall Rating: ⭐⭐⭐⭐⭐ (5/5)
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Why Choose This Fund?
- Diversified portfolio of high-quality stocks.
- Ideal for moderate- to long-term investors.
2. Motilal Oswal ELSS Tax Saver Fund
This fund boasts outstanding short-term performance, making it a great pick for aggressive investors. However, its long-term consistency could be better.
| Tenure | Returns |
|---|---|
| 1 Year | 53.5% |
| 3 Years | 27.9% |
| 5 Years | 25.2% |
| 10 Years | Not Available |
Overall Rating: ⭐⭐⭐ (3.3/5)
Why Choose This Fund?
- Exceptional short-term returns for tactical investors.
- Better suited for high-risk, high-reward strategies.
3. Mirae Asset Tax Saver Fund
The Mirae Asset Tax Saver Fund strikes a fine balance between risk and reward. It’s a reliable option for steady long-term wealth accumulation. This is one of the best elss mutual funds for tax saving in 2025.
| Tenure | Returns |
|---|---|
| 1 Year | 29.4% |
| 3 Years | 17.0% |
| 5 Years | 21.6% |
| 10 Years | Not Available |
Overall Rating: ⭐⭐⭐⭐ (4.4/5)
Why Choose This Fund?
- Consistently good returns over the years.
- Suitable for conservative and balanced investors.
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4. Kotak Tax Saver Fund
With a strong track record of delivering steady returns across all timeframes, the Kotak Tax Saver Fund is a dependable and one of the best ELSS Mutual Funds investments.
| Tenure | Returns |
|---|---|
| 1 Year | 31.4% |
| 3 Years | 19.7% |
| 5 Years | 21.7% |
| 10 Years | 16.1% |
Overall Rating: ⭐⭐⭐⭐ (4.3/5)
Also read: Best Large Cap Mutual Funds to Invest in 2025
5. DSP Tax Saver Fund
The DSP Tax Saver Fund is ideal for investors seeking a balanced approach with stable long-term returns.
| Tenure | Returns |
|---|---|
| 1 Year | 36.8% |
| 3 Years | 21.3% |
| 5 Years | 22.7% |
| 10 Years | 17.1% |
Overall Rating: ⭐⭐⭐⭐ (4/5)
6. Canara Robeco Tax Saver Fund
With its focus on quality stocks, the Canara Robeco Tax Saver Fund is a solid performer for both short- and long-term investments.
| Tenure | Returns |
|---|---|
| 1 Year | 28.9% |
| 3 Years | 16.5% |
| 5 Years | 22.2% |
| 10 Years | 15.3% |
Overall Rating: ⭐⭐⭐⭐ (4.1/5)
7. Bandhan Tax Saver Fund
The Bandhan Tax Saver Fund offers strong returns across medium- and long-term horizons, making it a reliable choice for tax-saving investments.
| Tenure | Returns |
|---|---|
| 1 Year | 22.6% |
| 3 Years | 18.5% |
| 5 Years | 23.4% |
| 10 Years | 16.7% |
Overall Rating: ⭐⭐⭐⭐ (4.1/5)
8. Bank of India Tax Saver Fund
With excellent performance in the 5- and 10-year categories, the Bank of India Tax Saver Fund is ideal for long-term investors.
| Tenure | Returns |
|---|---|
| 1 Year | 34.9% |
| 3 Years | 20.8% |
| 5 Years | 26.7% |
| 10 Years | 18.0% |
Overall Rating: ⭐⭐⭐⭐ (4.4/5)
9. Franklin India Tax Shield
While the Franklin India Tax Shield has strong short-term returns, its long-term performance is slightly weaker than its peers.
| Tenure | Returns |
|---|---|
| 1 Year | 33.4% |
| 3 Years | 21.1% |
| 5 Years | 21.7% |
| 10 Years | 14.9% |
Overall Rating: ⭐⭐ (2.9/5)
10. HDFC Tax Saver Fund
The HDFC Tax Saver Fund is a popular choice, offering competitive returns across all timeframes.
| Tenure | Returns |
|---|---|
| 1 Year | 33.2% |
| 3 Years | 23.4% |
| 5 Years | 21.7% |
| 10 Years | 13.9% |
Overall Rating: ⭐⭐⭐ (3.5/5)
Benefits of Investing in ELSS Mutual Funds
And before you choose to invest in one of the Best ELSS Mutual Funds mentioned, Let us understand why ELSS funds are so popular:
- Tax Savings: Save up to ₹46,800 in taxes under Section 80C.
- Wealth Creation: Enjoy market-linked returns that can outperform other tax-saving instruments like PPF or NSC.
- Shortest Lock-in Period: With just 3 years, ELSS has the shortest lock-in compared to other Section 80C investments.
- Flexibility: You can invest via SIPs (Systematic Investment Plans) or a lump sum.
Final Thoughts on the Best ELSS Mutual Funds
Choosing the best ELSS mutual funds for 2025 depends on your financial goals and risk appetite. While funds like Parag Parikh Tax Saver Fund and Bank of India Tax Saver Fund shine in their respective categories, ensure you consider your investment horizon and consult a financial advisor before making a decision.
Disclaimer
Mutual fund investments are subject to market risks. Please read the scheme information and consult a financial advisor before investing. The information provided here is for educational purposes and does not constitute financial advice.
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