Best Tax Saving Mutual Funds (ELSS) 2026
Best ELSS tax saving mutual funds in India 2026. Save up to ₹46,800 tax under Section 80C with 3-year lock-in ELSS funds.
20
Top Funds
Top Ranked by 3-Year Returns
Motilal Oswal ELSS Tax Saver Fund - Regular Plan - Growth Option
Motilal Oswal Mutual Fund · ELSS
Motilal Oswal ELSS Tax Saver Fund - Direct Plan - Growth Option
Motilal Oswal Mutual Fund · ELSS
Motilal Oswal ELSS Tax Saver Fund - IDCW Payout
Motilal Oswal Mutual Fund · ELSS
Motilal Oswal ELSS Tax Saver Fund Direct - IDCW Payout
Motilal Oswal Mutual Fund · ELSS
BARODA BNP PARIBAS ELSS Tax Saver Fund - Regular - Growth Option
BNP Paribas Mutual Fund · ELSS
BARODA BNP PARIBAS ELSS Tax Saver Fund- Regular - IDCW Option
BNP Paribas Mutual Fund · ELSS
JM ELSS Tax Saver Fund (Direct) - Growth Option
JM Financial Mutual Fund · ELSS
JM ELSS Tax Saver Fund (Regular) - Growth option
JM Financial Mutual Fund · ELSS
ITI ELSS Tax Saver Fund - Direct Plan - Growth Option
ITI Mutual Fund · ELSS
WhiteOak Capital ELSS Tax Saver Fund Direct Plan IDCW
WhiteOak Capital Mutual Fund · ELSS
WhiteOak Capital ELSS Tax Saver Fund Direct Plan Growth
WhiteOak Capital Mutual Fund · ELSS
JM ELSS Tax Saver Fund (Regular) - IDCW
JM Financial Mutual Fund · ELSS
WhiteOak Capital ELSS Tax Saver Fund Regular Plan Growth
WhiteOak Capital Mutual Fund · ELSS
WhiteOak Capital ELSS Tax Saver Fund Regular Plan IDCW
WhiteOak Capital Mutual Fund · ELSS
HSBC ELSS Tax saver Fund - Regular Growth
HSBC Mutual Fund · ELSS
HSBC ELSS Tax saver Fund - Regular IDCW Payout
HSBC Mutual Fund · ELSS
HSBC ELSS Tax saver Fund - Direct Growth
HSBC Mutual Fund · ELSS
Edelweiss ELSS Tax Saver Fund - Direct Plan-Growth Option
Edelweiss Mutual Fund · ELSS
BARODA BNP PARIBAS ELSS Tax Saver Fund - Direct Plan - Growth Option
BNP Paribas Mutual Fund · ELSS
BARODA BNP PARIBAS ELSS Tax Saver Fund - Direct Plan - IDCW Option
BNP Paribas Mutual Fund · ELSS
How to Choose the Best Tax Saving Mutual Funds (ELSS) 2026?
ELSS is the only Section 80C option that's market-linked, and comparing ELSS funds specifically for the tax-saving decision means weighing it against the other 80C instruments, not just against other ELSS funds. PPF offers a guaranteed, government-backed return with a 15-year lock-in; tax-saving bank FDs offer a fixed rate with a 5-year lock-in; ELSS offers market-linked equity returns with the shortest lock-in of the three, just 3 years.
That shorter lock-in doesn't reduce the underlying market risk — ELSS is typically run like a flexi-cap or multi-cap fund, so full equity volatility applies for the entire holding period. What it does offer is more flexibility: you're not locked in as long as PPF, and after the 3-year mark each investment tranche becomes freely redeemable, unlike a fixed-tenure instrument. For someone maximizing the full ₹1.5 lakh Section 80C limit, many planners suggest splitting between ELSS (for the equity/growth portion) and PPF or EPF (for the guaranteed/debt portion) rather than putting the entire 80C allocation into one instrument type.
Frequently Asked Questions
How much should I invest per month?
There is no fixed rule. Start with an amount you can consistently invest every month without straining your budget. Even ₹500-₹1,000/month compounded over 10+ years can build significant wealth.
Should I invest in a SIP or lump sum?
SIP (Systematic Investment Plan) is recommended for most investors as it averages out the purchase cost over time (rupee cost averaging). Lump sum is suitable when markets are significantly undervalued or you have a large amount to invest.
How are returns taxed?
Equity fund LTCG (held > 1 year) above ₹1 lakh is taxed at 10%. STCG (held < 1 year) is 15%. For ELSS, gains after 3-year lock-in are LTCG. Debt fund gains are taxed per your income tax slab (post-2023).
What is CAGR?
CAGR stands for Compounded Annual Growth Rate — the rate at which your investment would have grown each year if it had grown at a steady rate. It is the standard way to compare mutual fund returns across different time periods.
Can I do a SIP in ELSS, or only lump sum?
SIP is fully supported in ELSS funds, and it's often the more disciplined approach — each monthly SIP installment gets its own independent 3-year lock-in from its investment date, so a 12-month SIP means your investments unlock on a rolling basis over the following 3 years, not all at once.
What happens if I need the ELSS money before 3 years are up?
ELSS units cannot be redeemed before the 3-year lock-in under any circumstances — unlike some other investments, there's no premature withdrawal provision even for emergencies. This is worth factoring in before investing money you might need access to sooner.
Related Pages
* Data is for informational purposes only. Mutual fund investments are subject to market risks. Past performance does not guarantee future returns. Consult a SEBI-registered investment advisor.