Synopsis: This article lists the top 5 equity ELSS mutual funds with the highest CAGR over the last 5 years and have outperformed both their category and benchmark returns. The article also covers the risk factors associated with these funds and who should consider investing in them.
With the total SUM around 2.4 lakh crore, there are around 55 equity mutual fund schemes in the Indian mutual fund market. This makes up roughly 9% of the total equity mutual fund assets. Its tax-saving features make it a great wealth generation tool that gives the benefits of investing in equity while saving on tax.
How We Selected These Funds
We started by identifying the top 5 equity ELSS mutual funds (direct plan-growth) from the SEBI-defined equity ELSS, ranked based on their 5-year CAGR using data from Groww. To identify true outperformers, each fund’s performance was compared against its respective benchmark fund and the large-cap equity category average using Value Research data. All figures are based on the latest available period and are used purely for comparative and educational analysis.
Top 5 Funds (Detailed Analysis)
1. Quant ELSS Tax Saver Fund Direct Growth
- NAV: 416.79₹
- AUM: ₹11,735.96Cr
- Expense Ratio: 0.75%
- Exit load: Nil
Performance Snapshot
- 3-Year CAGR: 18.84%
- 5-Year CAGR: 21.06%
- 3-Year Absolute Return:67.9%
- 5-Year Absolute Return:160.3%
Category Comparison (5-Year)
- Fund 5-Year CAGR: 21.06%
- Equity-ELSS Category Average (5-Year): 15.47
- Outperformance: +5.59 percentage points
2. SBI ELSS Tax Saver Fund Direct Growth
- NAV: ₹485.40
- AUM: ₹31,861.52Cr
- Expense Ratio: 0.88%
- Exit load: Nil
Performance Snapshot
- 3-Year CAGR: 24.50%
- 5-Year CAGR: 20.06%
- 3-Year Absolute Return: 93.1%
- 5-Year Absolute Return: 149.7%
Category Comparison (5-Year)
- Fund 5-Year CAGR: 20.06%
- Equity-ELSS Category Average (5-Year): 15.47
- Outperformance: +4.59 percentage points
Also read: Top Performing Mutual Funds: 5 Small-Cap Funds With Up to 26% CAGR in the Last 5 Years
3. Motilal Oswal ELSS Tax Saver Fund Direct Growth
- NAV: ₹56.37
- AUM: ₹4,188.13Cr
- Expense Ratio: 0.66%
- Exit load: Nil
Performance Snapshot
- 3-Year CAGR: 22.99%
- 5-Year CAGR: 18.38%
- 3-Year Absolute Return: 86.1%
- 5-Year Absolute Return: 132.7%
Category Comparison (5-Year)
- Fund 5-Year CAGR: 18.38%
- Equity-ELSS Category Average (5-Year): 15.47
- Outperformance: +2.91 percentage points
4. DSP ELSS Tax Saver Fund Direct Plan Growth
- NAV: ₹161.11
- AUM: ₹17,223.17Cr
- Expense Ratio: 0.73%
- Exit load: Nil
Performance Snapshot
- 3-Year CAGR: 21.67%
- 5-Year CAGR: 18.21%
- 3-Year Absolute Return: 80.2%
- 5-Year Absolute Return: 131.1%
Category Comparison (5-Year)
- Fund 5-Year CAGR: 18.21%
- Equity-ELSS Category Average (5-Year): 15.47
- Outperformance: +2.74 percentage points
5. Parag Parikh ELSS Tax Saver Fund Direct Growth
- NAV: ₹33.36
- AUM: ₹5,768.08Cr
- Expense Ratio:0.62%
- Exit load:
Performance Snapshot
- 3-Year CAGR:16.67%
- 5-Year CAGR: 17.64%
- 3-Year Absolute Return:58.9%
- 5-Year Absolute Return:125.5%
Category Comparison (5-Year)
- Fund 5-Year CAGR: 17.64%
- Equity-ELSS Category Average (5-Year): 15.47
- Outperformance: +2.17 percentage points
Performance Comparison Table
Who Should Consider These Funds?
ELSS mutual funds are suitable for long-term investors who can stay invested for 7-10 years, as there is a 3-year lock-in period. It’s also ideal for equity investors who want tax-saving investments that give exposure to equity, unlike PPF or EPF, and are comfortable with market volatility.
Conclusion
While ELSS mutual funds help you optimise on tax savings, they should not be chosen just for their tax-saving feature. Its value lies in long-term wealth generation through structured and disciplined investing. In the end, investors should choose funds based on their financial goals and risk tolerance.
Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice or investment recommendation. Returns mentioned are based on historical performance and may not be sustained 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.
Written by Nila Maria Jacob
