Synopsis: Choosing the right tax-saving mutual fund can be challenging. The article compares the performance of Motilal Oswal ELSS Tax Saver Fund and the SBI ELSS Tax Saver Fund based on their 3-year compounded annual growth rate, investment approach, and suitability for different types of investors.
ELSS funds offer tax benefits under Section 80C along with the potential for long-term capital appreciation. The two investment options, the Motilal Oswal ELSS Tax Saver Fund and the SBI ELSS Tax Saver Fund, provide investors with different investment styles while maintaining a strong performance track record. These funds provide tax advantages through Section 80C, but their return generation methods require investors to select an option that matches their risk tolerance.
What Are ELSS Tax Saver Funds?
ELSS (Equity Linked Savings Scheme) funds are equity mutual funds that invest in the stock market and come with a mandatory 3-year lock-in period. Investors receive tax deductions through the old tax regime, which allows them to deduct up to ₹1.5 lakh under Section 80C while also gaining opportunities for long-term wealth creation.
Motilal Oswal ELSS Tax Saver Fund
- NAV: ₹54.13
- AUM: ₹4,174.50 Cr
- Expense Ratio: 0.69%
- Exit Load: Nil (after 3-year lock-in)
- Performance Snapshot
- 3-Year CAGR: 21.9%
- 3-Year Absolute Return: 81.2%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 21.9%
- Equity ELSS Category Average: 16.4%
- Outperformance: +5.5 percentage points
- Risk & Performance Metrics:
- Alpha: 7.31
- Sharpe Ratio: 0.77
SBI ELSS Tax Saver Fund
- NAV: ₹432.00
- AUM: ₹32,171.48 Cr
- Expense Ratio: 0.99%
- Exit Load: Nil (after 3-year lock-in)
- Performance Snapshot
- 3-Year CAGR: 20.3%
- 3-Year Absolute Return: 74.2%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 20.3%
- Equity ELSS Category Average: 16.4%
- Outperformance: +3.9 percentage points
- Risk & Performance Metrics:
- Alpha: 5.96
- Sharpe Ratio: 0.87
Also read: Top 4 PSU Mutual Funds Delivering Up to 30% Returns in the Last 3 Years – Do You Own Any?
Comparison Table: Motilal Oswal ELSS vs SBI ELSS
Note: The NAV, AUM, expense ratio, and the ratios mentioned for the funds are sourced from Groww as of 02nd April 2026.
Which is the Better ELSS Fund?
The Motilal Oswal ELSS Tax Saver Fund shows stronger returns, a lower expense ratio, and better category outperformance over the past three years. The SBI ELSS Tax Saver Fund, on the other hand, has a higher Sharpe ratio and larger AUM, indicating better risk-adjusted performance and greater stability. SBI demonstrates stronger risk management abilities, while Motilal Oswal shows stronger growth potential
Conclusion
Both Motilal Oswal ELSS Tax Saver Fund and SBI ELSS Tax Saver Fund stand as dependable ELSS investment options that deliver consistent results through their efficient fund management. The two funds provide tax advantages according to Section 80C while they enable investors to build wealth over extended periods, which makes them suitable for equity-linked tax-saving investments.
Written By Ameet S
Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice or an investment recommendation. Historical performance determines the returns mentioned, which may not be sustainable in the future. Mutual fund investments are subject to market risks, including potential loss of capital. Investors are advised to assess their risk appetite and financial goals and to consult a certified financial advisor before investing.
