Table of Contents
ELSS vs Tax Saving FD
Equity Linked Savings Scheme (ELSS)
ELSS is the only Mutual Fund eligible for 80C deductions. It is a diversified equity mutual fund that offers tax deductions up to Rs. 1.5 lakhs annually under Section 80C of income tax Act (IT Act 1961).
Prior to the introduction of Feburary Budget 2018, its returns were completely tax-free. However, now it is subject to 10% long-term Capital gains tax if your Capital Gains exceed Rs. 1 lakh after one year. Even after the 10% tax cut, ELSS has the potential to deliver superior returns compared to other tax-saving instruments. The perks of ELSS investments are not limited to the Taxes saved. The Power of Compounding ensures that your investment is doubled if you invest for, say, 5 years (tenure of tax-saving FD). To add to that, the minimum lock-in period is only 3 years.
Tax Saving Fixed Deposits
Investing money in Fixed Deposits with banks allows individuals and HUFs to claim a tax Deduction of up to Rs. 1,50,000 in a financial year. These deposits have a lock-in period of 5 years. You, however, cannot withdraw this deposit prematurely. But you can avail loans against your FDs at competitive rates. The interest earned on these deposits, however, is taxable marginal rate of tax (as per the tax bracket) of the individual.
Highlights of Tax Saver FD
Let us look at the key highlights of the tax saver FD -
- Only individuals and members of hindu undivided family (HUF) can invest in the tax saving FD scheme
- The minimum investment amount of the tax saver FD varies from Bank to bank
- The lock-in period of the tax saving FD is five years
- You can get tax deductions up to Rs. 1,50,000
- There is no provision for premature withdrawal
- You cannot apply for loan against these tax saver FD
- Investment in these tax saver FDs can be done in any private or public sector bank (except co-operative and rural banks)
- Investment made in Post Office Time Deposit for the period of over five years also qualifies as tax saving FD
- You can transfer the Post Office FD from one Post Office to another
- The interest earned from this type of FD is taxable and will be deducted from the source
- Tax saving deposit account can be opened individually as well as jointly.
- In case of a joint account, the tax benefit will be enjoyed by the first holder of the joint account
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ELSS vs FD - Comparison
Here is a quick overview of the of the differences between ELSS and Tax Saving FDs over various parameters:
| Parameter | FD | ELSS |
|---|---|---|
| Tenure | 5 Years Lock-in | 3 Years Lock-in |
| Returns | 7.00 - 8.00 % (Compounded Annually) | No Assured Divividend / Return as it Market linked generally around 16 - 17% per annum |
| Min. Investment | Rs. 1000 | Rs. 500 |
| Max. Investment | No Upper Limit | No Upper Limit |
| Amount Eligible for Deduction under 80c | Rs. 1.5 Lakhs | Rs. 1.5 Lakhs |
| Taxation for Interest/return | Interest Taxable | Gains up to Rs. 1 lakh are free of tax. Tax at 10% applies to gains above Rs. 1 lakh |
| Safety/Ratings | Safe | Bit Risky |
| liquidity | You cannot withdraw tax saving FD before 5 years | You may exit or withdraw ELSS after 3 years. |
| Online option | Not all banks offer an online Facility to open an FD | One can start an ELSS online – as a lump sum or SIP |
Top ELSS Mutual Funds FY 25 - 26
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2023 (%) IDBI Equity Advantage Fund Growth ₹43.39
↑ 0.04 ₹485 9.7 15.1 16.9 20.8 10 Motilal Oswal Long Term Equity Fund Growth ₹43.9487
↓ -0.33 ₹3,876 -13.8 -13.8 9.5 19.3 17.8 47.7 Baroda Pioneer ELSS 96 Growth ₹68.6676
↑ 0.33 ₹210 -6.1 -3.5 17.6 16.7 11.6 Franklin India Taxshield Growth ₹1,338.91
↓ -10.41 ₹6,438 -5.6 -9.3 6.5 16.3 18.2 22.4 JM Tax Gain Fund Growth ₹43.6176
↓ -0.16 ₹180 -7.6 -14.6 8.2 16.3 17.9 29 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Jul 23
*Below is the list of funds having AUM between 100 - 15000 Crore & having fund age of 3 Years of above. Based on 3 Year Performance.
The Scheme will seek to invest predominantly in a diversified portfolio of equity and equity related instruments with the objective to provide investors with opportunities for capital appreciation and income along with the benefit of income-tax deduction(under section 80C of the Income-tax Act, 1961) on their investments. Investments in this scheme would be subject to a statutory lock-in of 3 years from the date of allotment to be eligible for income-tax benefits under Section 80C. There can be no assurance that the investment objective under the scheme will be realized. IDBI Equity Advantage Fund is a Equity - ELSS fund was launched on 10 Sep 13. It is a fund with Moderately High risk and has given a Below is the key information for IDBI Equity Advantage Fund Returns up to 1 year are on (Erstwhile Motilal Oswal MOSt Focused Long Term Fund) The investment objective of the Scheme is to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related instruments. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved. Motilal Oswal Long Term Equity Fund is a Equity - ELSS fund was launched on 21 Jan 15. It is a fund with Moderately High risk and has given a Below is the key information for Motilal Oswal Long Term Equity Fund Returns up to 1 year are on The main objective of the scheme is to provide the investor long term capital growth as also tax benefit under section 80C of the Income Tax Act, 1961. Baroda Pioneer ELSS 96 is a Equity - ELSS fund was launched on 2 Mar 15. It is a fund with Moderately High risk and has given a Below is the key information for Baroda Pioneer ELSS 96 Returns up to 1 year are on The primary objective for Franklin IndiaTaxshield is to provide medium to long term growth of capital along with income tax rebate Franklin India Taxshield is a Equity - ELSS fund was launched on 10 Apr 99. It is a fund with Moderately High risk and has given a Below is the key information for Franklin India Taxshield Returns up to 1 year are on The investment objective is to generate long-term capital growth from a diversified and actively managed portfolio of equity and equity related securities and to enable investors a deduction from total income, as permitted under the Income Tax Act, 1961 from time to time. However, there can be no assurance that the investment objectives of the Scheme will be realized. The Scheme does not guarantee/indicate any returns. JM Tax Gain Fund is a Equity - ELSS fund was launched on 31 Mar 08. It is a fund with Moderately High risk and has given a Below is the key information for JM Tax Gain Fund Returns up to 1 year are on 1. IDBI Equity Advantage Fund
CAGR/Annualized return of 16% since its launch. Ranked 21 in ELSS category. . IDBI Equity Advantage Fund
Growth Launch Date 10 Sep 13 NAV (28 Jul 23) ₹43.39 ↑ 0.04 (0.09 %) Net Assets (Cr) ₹485 on 30 Jun 23 Category Equity - ELSS AMC IDBI Asset Management Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 2.39 Sharpe Ratio 1.21 Information Ratio -1.13 Alpha Ratio 1.78 Min Investment 500 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹10,442 31 Jan 22 ₹13,468 31 Jan 23 ₹13,373 Returns for IDBI Equity Advantage Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jul 23 Duration Returns 1 Month 3.1% 3 Month 9.7% 6 Month 15.1% 1 Year 16.9% 3 Year 20.8% 5 Year 10% 10 Year 15 Year Since launch 16% Historical performance (Yearly) on absolute basis
Year Returns 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Fund Manager information for IDBI Equity Advantage Fund
Name Since Tenure Data below for IDBI Equity Advantage Fund as on 30 Jun 23
Equity Sector Allocation
Sector Value Asset Allocation
Asset Class Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 2. Motilal Oswal Long Term Equity Fund
CAGR/Annualized return of 15.9% since its launch. Return for 2024 was 47.7% , 2023 was 37% and 2022 was 1.8% . Motilal Oswal Long Term Equity Fund
Growth Launch Date 21 Jan 15 NAV (21 Feb 25) ₹43.9487 ↓ -0.33 (-0.75 %) Net Assets (Cr) ₹3,876 on 31 Jan 25 Category Equity - ELSS AMC Motilal Oswal Asset Management Co. Ltd Rating Risk Moderately High Expense Ratio 0.74 Sharpe Ratio 0.74 Information Ratio 0.72 Alpha Ratio 10.73 Min Investment 500 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹10,501 31 Jan 22 ₹13,929 31 Jan 23 ₹13,836 31 Jan 24 ₹20,216 31 Jan 25 ₹24,623 Returns for Motilal Oswal Long Term Equity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jul 23 Duration Returns 1 Month -13.6% 3 Month -13.8% 6 Month -13.8% 1 Year 9.5% 3 Year 19.3% 5 Year 17.8% 10 Year 15 Year Since launch 15.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 47.7% 2022 37% 2021 1.8% 2020 32.1% 2019 8.8% 2018 13.2% 2017 -8.7% 2016 44% 2015 12.5% 2014 Fund Manager information for Motilal Oswal Long Term Equity Fund
Name Since Tenure Ajay Khandelwal 11 Dec 23 1.15 Yr. Rakesh Shetty 22 Nov 22 2.2 Yr. Atul Mehra 1 Oct 24 0.34 Yr. Data below for Motilal Oswal Long Term Equity Fund as on 31 Jan 25
Equity Sector Allocation
Sector Value Industrials 32.1% Consumer Cyclical 24.6% Financial Services 16.39% Technology 10.16% Real Estate 6.74% Basic Materials 6.02% Health Care 2.93% Asset Allocation
Asset Class Value Cash 1.05% Equity 98.95% Top Securities Holdings / Portfolio
Name Holding Value Quantity Trent Ltd (Consumer Cyclical)
Equity, Since 31 Aug 22 | 5002517% ₹303 Cr 425,260 Zomato Ltd (Consumer Cyclical)
Equity, Since 31 Oct 23 | 5433206% ₹276 Cr 9,923,692 Kalyan Jewellers India Ltd (Consumer Cyclical)
Equity, Since 31 Oct 23 | KALYANKJIL5% ₹240 Cr 3,134,622 Kaynes Technology India Ltd (Industrials)
Equity, Since 30 Jun 23 | KAYNES5% ₹221 Cr 297,751 Prestige Estates Projects Ltd (Real Estate)
Equity, Since 31 Oct 23 | PRESTIGE4% ₹179 Cr 1,055,205 Amber Enterprises India Ltd Ordinary Shares (Consumer Cyclical)
Equity, Since 31 Mar 24 | AMBER4% ₹174 Cr 235,044 Premier Energies Ltd (Technology)
Equity, Since 30 Sep 24 | PREMIERENE4% ₹172 Cr 1,267,798 Gujarat Fluorochemicals Ltd Ordinary Shares (Basic Materials)
Equity, Since 28 Feb 23 | FLUOROCHEM4% ₹170 Cr 408,886 Coforge Ltd (Technology)
Equity, Since 31 Jul 24 | COFORGE4% ₹163 Cr 168,355 Apar Industries Ltd (Industrials)
Equity, Since 31 Dec 23 | APARINDS3% ₹153 Cr 148,305 3. Baroda Pioneer ELSS 96
CAGR/Annualized return of 8.4% since its launch. . Baroda Pioneer ELSS 96
Growth Launch Date 2 Mar 15 NAV (11 Mar 22) ₹68.6676 ↑ 0.33 (0.48 %) Net Assets (Cr) ₹210 on 31 Jan 22 Category Equity - ELSS AMC Baroda Pioneer Asset Management Co. Ltd. Rating Risk Moderately High Expense Ratio 2.55 Sharpe Ratio 2.51 Information Ratio -0.09 Alpha Ratio 5.69 Min Investment 500 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹11,429 31 Jan 22 ₹15,776 Returns for Baroda Pioneer ELSS 96
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jul 23 Duration Returns 1 Month -3.9% 3 Month -6.1% 6 Month -3.5% 1 Year 17.6% 3 Year 16.7% 5 Year 11.6% 10 Year 15 Year Since launch 8.4% Historical performance (Yearly) on absolute basis
Year Returns 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Fund Manager information for Baroda Pioneer ELSS 96
Name Since Tenure Data below for Baroda Pioneer ELSS 96 as on 31 Jan 22
Equity Sector Allocation
Sector Value Asset Allocation
Asset Class Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 4. Franklin India Taxshield
CAGR/Annualized return of 20.8% since its launch. Ranked 28 in ELSS category. Return for 2024 was 22.4% , 2023 was 31.2% and 2022 was 5.4% . Franklin India Taxshield
Growth Launch Date 10 Apr 99 NAV (21 Feb 25) ₹1,338.91 ↓ -10.41 (-0.77 %) Net Assets (Cr) ₹6,438 on 31 Jan 25 Category Equity - ELSS AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆ Risk Moderately High Expense Ratio 1.83 Sharpe Ratio 0.52 Information Ratio 0.76 Alpha Ratio 2.98 Min Investment 500 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹11,078 31 Jan 22 ₹15,238 31 Jan 23 ₹15,360 31 Jan 24 ₹21,287 31 Jan 25 ₹24,121 Returns for Franklin India Taxshield
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jul 23 Duration Returns 1 Month -2.9% 3 Month -5.6% 6 Month -9.3% 1 Year 6.5% 3 Year 16.3% 5 Year 18.2% 10 Year 15 Year Since launch 20.8% Historical performance (Yearly) on absolute basis
Year Returns 2023 22.4% 2022 31.2% 2021 5.4% 2020 36.7% 2019 9.8% 2018 5.1% 2017 -3% 2016 29.1% 2015 4.7% 2014 4% Fund Manager information for Franklin India Taxshield
Name Since Tenure R. Janakiraman 2 May 16 8.76 Yr. Rajasa Kakulavarapu 1 Dec 23 1.17 Yr. Data below for Franklin India Taxshield as on 31 Jan 25
Equity Sector Allocation
Sector Value Financial Services 28.41% Consumer Cyclical 13.32% Industrials 11.97% Technology 11.04% Health Care 6.54% Consumer Defensive 6.26% Communication Services 5.53% Basic Materials 5.35% Energy 3.35% Utility 3.21% Real Estate 1.9% Asset Allocation
Asset Class Value Cash 2.26% Equity 97.74% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 18 | ICICIBANK9% ₹583 Cr 4,546,914 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Mar 07 | HDFCBANK8% ₹578 Cr 3,260,417 Infosys Ltd (Technology)
Equity, Since 29 Feb 12 | INFY5% ₹361 Cr 1,922,741 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Jan 07 | BHARTIARTL5% ₹351 Cr 2,213,637 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Dec 19 | LT5% ₹319 Cr 883,853 HCL Technologies Ltd (Technology)
Equity, Since 31 Oct 21 | HCLTECH4% ₹280 Cr 1,462,587 United Spirits Ltd (Consumer Defensive)
Equity, Since 31 Oct 18 | UNITDSPR4% ₹256 Cr 1,575,000 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 14 | 5322153% ₹240 Cr 2,252,948 Zomato Ltd (Consumer Cyclical)
Equity, Since 30 Nov 21 | 5433203% ₹209 Cr 7,500,000 Reliance Industries Ltd (Energy)
Equity, Since 31 May 22 | RELIANCE2% ₹161 Cr 1,324,806 5. JM Tax Gain Fund
CAGR/Annualized return of 9.1% since its launch. Ranked 18 in ELSS category. Return for 2024 was 29% , 2023 was 30.9% and 2022 was 0.5% . JM Tax Gain Fund
Growth Launch Date 31 Mar 08 NAV (21 Feb 25) ₹43.6176 ↓ -0.16 (-0.37 %) Net Assets (Cr) ₹180 on 31 Jan 25 Category Equity - ELSS AMC JM Financial Asset Management Limited Rating ☆☆☆ Risk Moderately High Expense Ratio 2.4 Sharpe Ratio 0.61 Information Ratio 0.53 Alpha Ratio 5.9 Min Investment 500 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹11,324 31 Jan 22 ₹15,243 31 Jan 23 ₹14,987 31 Jan 24 ₹21,107 31 Jan 25 ₹24,605 Returns for JM Tax Gain Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Jul 23 Duration Returns 1 Month -4.9% 3 Month -7.6% 6 Month -14.6% 1 Year 8.2% 3 Year 16.3% 5 Year 17.9% 10 Year 15 Year Since launch 9.1% Historical performance (Yearly) on absolute basis
Year Returns 2023 29% 2022 30.9% 2021 0.5% 2020 32.2% 2019 18.3% 2018 14.9% 2017 -4.6% 2016 42.6% 2015 5.2% 2014 -0.6% Fund Manager information for JM Tax Gain Fund
Name Since Tenure Satish Ramanathan 1 Oct 24 0.33 Yr. Asit Bhandarkar 31 Dec 21 3.09 Yr. Chaitanya Choksi 18 Jul 14 10.55 Yr. Ruchi Fozdar 4 Oct 24 0.33 Yr. Data below for JM Tax Gain Fund as on 31 Jan 25
Equity Sector Allocation
Sector Value Industrials 17.9% Financial Services 16.17% Technology 14.68% Consumer Cyclical 14.13% Basic Materials 12.77% Health Care 7.91% Consumer Defensive 6.39% Communication Services 2.62% Utility 1.43% Real Estate 1% Asset Allocation
Asset Class Value Cash 2.87% Equity 97.13% Top Securities Holdings / Portfolio
Name Holding Value Quantity Infosys Ltd (Technology)
Equity, Since 31 Aug 18 | INFY5% ₹9 Cr 48,465 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Dec 11 | HDFCBANK5% ₹9 Cr 48,631
↓ -6,500 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 22 | ICICIBANK3% ₹6 Cr 50,475
↓ -5,500 State Bank of India (Financial Services)
Equity, Since 31 Aug 20 | SBIN3% ₹6 Cr 72,900 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Nov 10 | LT3% ₹5 Cr 14,447 Newgen Software Technologies Ltd (Technology)
Equity, Since 30 Nov 23 | NEWGEN3% ₹5 Cr 30,250 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Mar 24 | BHARTIARTL3% ₹5 Cr 30,700 Bajaj Auto Ltd (Consumer Cyclical)
Equity, Since 30 Sep 24 | 5329772% ₹4 Cr 5,050 Tech Mahindra Ltd (Technology)
Equity, Since 30 Sep 24 | 5327552% ₹4 Cr 23,750
↓ -2,750 PG Electroplast Ltd (Technology)
Equity, Since 31 Jul 24 | PGEL2% ₹4 Cr 40,487
Should you Invest in ELSS or Tax saving FDs?
Before getting into new investment ventures, people consider a lot of things. Age, investment horizon and risk appetite are a few of the important factors. People who want dual benefits of wealth growth and tax benefits prefer ELSS. For instance, new investors with a long investment horizon and higher risk appetite find ELSS a sensible option. People nearing retirement can invest in tax saving FDs as they tend to have low risks and guaranteed returns over long term (5 year or above atleast).
How to Invest in ELSS Online?
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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