Equity Linked Savings Schemes (ELSS) are a popular option for tax-saving and wealth creation. For 2025, the top five ELSS funds have delivered impressive returns of up to 24% over the past five years. Leading performers include SBI Long Term Equity Fund, HDFC ELSS Tax Saver Fund, Motilal Oswal ELSS Tax Saver Fund, DSP ELSS Tax Saver Fund, and Parag Parikh ELSS Tax Saver Fund.
These funds offer tax benefits under Section 80C of the Income Tax Act, with a lock-in period of three years. They also provide the potential for long-term capital growth. The consistent performance and relatively low expense ratios make these funds an attractive option for investors looking to balance risk and reward.
Financial experts recommend considering fund performance, expense ratio, and market conditions before investing. ELSS funds primarily invest in equity markets, which means returns are influenced by market trends. Investors should align their investment goals and risk appetite with the fund’s performance history.
With the potential for high returns and tax savings, these ELSS funds are a smart choice for investors seeking to build long-term wealth while reducing their tax burden