The Best ELSS Funds for 2024: Maximizing Tax Savings with Equity Linked Savings Schemes

The Best ELSS Funds for 2024: Maximizing Tax Savings with Equity Linked Savings Schemes

Equity-Linked Savings Schemes (ELSS) are ideal investment options for individuals looking to secure tax savings and grow their wealth. Under Section 80C of the Income Tax Act, investments up to 1.5 lakh per financial year qualify for tax savings. Whether you are a first-time investor or someone looking to optimize your portfolio, the choice of the best ELSS fund can significantly impact your returns and overall financial health.

Top-performing ELSS Funds for 2024

In recent years, certain ELSS funds have demonstrated exceptional performance, making them a top choice for the coming fiscal year. For 2024, the Quant Tax Plan and Bandhan Tax Advantage Fund are highly recommended given their strong track records.

Quant Tax Plan

The Quant Tax Plan is a standout option for investors prioritizing high returns. Over the past three years, it has delivered impressive annualized returns of 34.96%, and a slightly lower but still promising 30.25% over the last five years. This fund is managed by Quant Asset Management and focuses on a diversified portfolio of equities, making it a robust choice for long-term growth.

Bandhan Tax Advantage Fund

Beyond the Quant Tax Plan, the Bandhan Tax Advantage Fund is another excellent investment option. It has consistently performed well, with strong returns over the last five years. This fund is known for its strategic approach to managing risks while seeking higher returns, making it a reliable choice for those looking to diversify their investment portfolio.

Historical Performance and Prospects

It's important to note that past performance is not always indicative of future results, but reviewing historical performance can give investors a clearer picture of a fund's potential. The top-performing ELSS funds often maintain a strong track record due to their investment strategies and fund management expertise.

For instance, the Quant ELSS Tax Saver fund, recognized as one of the top-performing ELSS funds over the last three and five years, can be found on Value Research's website. This fund is known for its diversified portfolio and focused approach on capital appreciation.

Other Notable ELSS Funds

While Quant and Bandhan stand out, the Canara Robeco ELSS Tax Saver Fund, Canara Robeco Vision Series 2, Canara Global Vision Fund, and SBI Long Term Equity Fund (SBI Long Tech) also make valuable contributions to the ELSS landscape. These funds have demonstrated consistent performance and are managed by reputable fund houses, making them strong contenders for 2024.

Conclusion

Investing in the ELSS sector is a strategic choice for those seeking to maximize their tax savings while growing their wealth. With the right choice, you can enjoy the benefits of tax incentives and potentially high returns. For 2024, the Quant Tax Plan and Bandhan Tax Advantage Fund are highly recommended, offering a balanced approach to risk and return.

Whether you choose to invest in these funds or explore others, it's essential to do thorough research and consult with financial advisors to ensure that your investment aligns with your financial goals and risk tolerance.

Stay informed and well-invested in the coming fiscal year!

[12: Source: Quant Asset Management] [13: Source: Value Research] [14: Source: Canara Robeco] [15: Source: SBI Mutual Fund]