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Top Tax Saving Mutual Funds in 2023

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Created on
April 21, 2023

Summary

What’s Inside

When you invest in mutual funds, you probably aim for long-term wealth creation. But what about your tax-saving goals? That's when you turn to tax saver mutual funds. Commonly referred to as ELSS funds, they allow you to get tax exemption up to INR 1.5 lakhs.

For most funds, the lock-in period is 3 years, which is less compared to PPF and similar schemes. The top choices on the tax saver mutual fund list include Reliance Tax Saver Fund and Tata Tax Savings Fund. Let’s dive into the details!

1. Canara Robeco Equity Tax Saver Fund

The list of the best tax saving mutual funds begins with the Canara Robeco Equity Tax Saver Fund. It helps you save tax and generate wealth with an annualised return of 14.21% for 5 years. The lock-in period is 3 years, after which you can redeem funds.

This fund scheme has a promising asset size of INR 4,924 Crores. You can invest a minimum amount of INR 500 through SIP, STP (Systematic Transfer Plan) and Systematic Withdrawal Plan.

Even though some risks are associated with this fund, it has had a CAGR of 18.74 % since 2009 its launch date.

2. Reliance Tax Saver Fund

Reliance Tax Saver Fund is among the best tax saving mutual funds and is extremely reliable. Coming from the reputed Reliance Industries, the fund is known to offer great returns. With an asset size of 11157.56 crores, it gives annualised returns worth 5.38% for a 5-year period.

You can get started with INR 500 and more than that for the initial investment. Both SIP and lumpsum investment options are available here.

So, if you're interested in equity-linked security investments, this fund can boost your capital growth. You can save up to INR 46,350 through this fund!

4. Tata Tax Savings Fund

Another option on our tax saver mutual fund list is this scheme from Tata. It is also a very trustworthy investment option from a world-class brand which attracts investors. Having good ratings from brokers and other investment agencies, you can rely on it completely.

The fund has an asset size of INR 3078.13 crore and provides 10.5% (5yr) annualised returns. You can start investing through SIP or lumpsum, with a minimum amount of INR 500.

It also provides a Systematic Withdrawal Plan, where you can withdraw money from the investment monthly or quarterly. The speciality is available after the lock-in period of 3 years. However, there are no exit expenses after the lock-in period.

5. Axis Long-Term Equity Fund

The Axis Long-Term Equity Fund is a credible investment option for equity-linked securities. This fund invests in mid-cap and large-cap company funds. So, it will be suitable for small or large business owners planning to enhance their wealth.

It has an asset size of INR 28,267 crores and an annualised return of 8.46% over 5 years. The minimum investment amount here is INR 500 using lumpsum, SIP and additional investment options.

After a lock-in period of 3 years, you can redeem the fund units or continue investing.

Wrap Up

As every mutual fund investment has risks, don't invest all your money into a single fund. Try diversifying your portfolio by selecting multiple tax-saving funds. Talk to your fund manager or experienced investors to know more.

For a seamless online investment experience, download the Fi Money app. Choose from more than 800 mutual funds, and start investing through SIPs or automatic payments. Moreover, there are no penalties for late payments!

Frequently Asked Questions

1. Which Is the Rank 1 Tax Saver Mutual Fund?

The Canara Robeco Equity Tax Saver Fund is the best tax saving mutual fund in 2023.

2. Which MF is tax free?

ELSS Mutual Funds are exempted from tax under section 80C. Investments up to INR 1,50,000 per annum qualify for this exemption.

3. Which ELSS fund is best in 2023?

As of 2023, Quant Tax Plan Fund is the best option to invest in. Since this is subject to market risk, here are some more ELSS funds you can invest in-

a. Parag Parikh Tax Saver Fund Direct Growth

b. Mirae Asset Tax Saver Fund Direct Growth

c. Canara Robeco Equity Tax Saver Direct Growth

Disclaimer

Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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