BEST ELSS FUNDS 2019

Are you one of those people who leave filing your taxes to the very end?

Do you get annoyed when your HR manager is breathing down your neck to get it done as soon as possible?

Well, fear not, because there happen to be many others like you (including yours truly)! The easiest last-minute answer to your tax troubles is investing in tax-saving mutual funds, namely Equity Linked Savings Schemes (ELSS). Now, you may think mutual funds are risky, scary and complicated (which has probably something to do with the breathless disclaimers that accompany them) but that could not be farther from the truth! Let’s delve deeper into the topic of ELSS funds a bit:

Demystifying ELSS funds

Before we get into the nitty-gritties of the best ELSS funds in 2019, let us first understand what exactly ELSS is. Equity Linked Saving Schemes are, simply put, mutual fund investment schemes, made specifically to help you save income tax. Section 80C of The Income Tax Act lets taxpayers invest up to Rs. 1.5 lakhs in these ELSS funds, and claim it as a deduction from their taxable income. 

How to Choose the Right ELSS

Let’s break down the features you should look for in a good ELSS fund :

  • The fund should have invested a large percentage of their portfolio in equity
  • The lock-in period is 3 years (which is the shortest amongst all tax saving instruments).
  • You can reap the benefits of both capital appreciation from investments in equity along with saving tax.
  • You have the option of dividend payouts or choose growth option for capital appreciation.

If you are worried about the hassles of investing, you can choose an app like Sqrrl which can help in easy tax-saving through ELSS funds.

Let’s look at some of the best ELSS funds in 2019: 

1. Axis Long Term Equity Fund – Direct Plan – Growth (ELSS)

It is an open-ended ELSS with a compulsory lock-in period of 3 years and tax benefits. Popular for its diversified ELSS, it allows one to invest in a mix of large caps and select midcaps. This ELSS scheme has both the advantages of building wealth and also saving tax. One can rest assured that having equity as an asset can potentially beat inflation and generate long term wealth.

Best ELSS 2019

2. Aditya Birla Sun Life Tax Relief 96- ELSS

Aditya Birla Sun Life Tax Relief 96 is also an open-ended ELSS, its objective being “long term growth of capital through a portfolio with a target allocation of 80% equity, 20% debt and money market securities”. However, do keep in mind that this scheme is slightly riskier and is prone to higher volatility. It has an aggressive strategy and 55% of its portfolio distributed to mid caps and small caps. 

BEST ELSS 2019

3. Tata India Tax Savings Fund – Direct Plan – Growth (ELSS)

Another top ELSS for 2019 is the Tata India Tax Savings Fund Growth Direct Plan which issues medium to long-term capital gains along with tax savings to its unitholders and pays special attention to the importance of capital appreciation. Although favoured by many, the scheme is high-risk as it doesn’t guarantee any returns. 

BEST ELSS 2019

4. DSP Tax Saver Fund – Direct Plan – Growth

Known for having a very consistent track record and even beating its own track record of Nifty 500, this scheme is the wagon you want to jump on. The main agenda of this scheme is to generate medium to long-term capital appreciation from a vast portfolio which consists of equity and equity related securities of corporates to allow investors to get a deduction from the total income, as permitted by the Income Tax Act, 1961. 

BEST ELSS 20195. Invesco India Tax Plan – Direct Plan – Growth

Another open-ended growth fund category, this scheme is suitable for investors who are looking to invest money for at least 3 years while saving tax and also looking for higher returns. Its prime objective is to generate long-term capital appreciation from a wide range of equity and equity-related instruments. 

BEST ELSS 2019

A word of caution before you invest in ELSS

Before you jump on board to committing in any scheme, make sure you understand what you are signing up for. What you ultimately choose will also depend largely on your appetite for risk. For more details about top ELSS’ for 2019, simply install sqrrl.in. 

Sqrrl can not only help you manage your finances, it can also teach you, how to save money, invest, and in this case save your taxes. It takes 2 mins to set up an account and march your way into a smart monetary future. So, let’s get cracking!

To know more about Sqrrl, read on – https://www.sqrrl.in/sqrrl-best-app-for-money-online/

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