Mutual Funds Tax Season Essential 📅 June 2026 · ✍️ Karthik, Vijayawada AP · ⏱ 7 min read

Best ELSS Tax Saving Funds 2026 Save 46,800 in Tax with High Returns

Top ELSS funds in 2026 for Section 80C tax saving. Save up to ₹46,800 in tax with equity-linked returns of 12-24%. Only 3-year lock-in vs PPF's 15 years.

What is ELSS and How Does it Save Tax?

ELSS (Equity Linked Savings Scheme) is a mutual fund category that qualifies for Section 80C deduction. Investing up to ₹1.5 lakh per year saves tax of ₹15,000 to ₹46,800 depending on your tax bracket. It has only 3 years lock-in — the shortest among all 80C options.

Best ELSS Funds 2026 — Ranked by 5-Year Returns

ELSS Fund	1Y Return	3Y Return	5Y Return	Expense Ratio	Min SIP
Quant Tax Plan	19.2%	21.4%	24.6%	0.57%	₹500
Mirae Asset Tax Saver	13.4%	14.8%	19.2%	0.53%	₹500
Canara Robeco Equity Tax Saver	14.1%	15.2%	18.8%	0.60%	₹500
IDFC Tax Advantage	13.8%	14.5%	18.1%	0.72%	₹500
DSP Tax Saver Fund	13.2%	14.1%	17.4%	0.83%	₹500

ELSS vs PPF vs NPS — Complete Comparison

Feature	ELSS	PPF	NPS
80C Deduction	Up to ₹1.5L	Up to ₹1.5L	Up to ₹1.5L + ₹50K extra
Lock-in	3 years	15 years	Till age 60
Expected Returns	12-20%	7.1% (fixed)	8-12%
Risk	Market risk	Zero	Low-Medium
Tax on Returns	10% LTCG above ₹1L	100% tax-free	60% tax-free at 60
Best For	Young investors, high earners	Conservative	Retirement planning

How Much Tax You Save with ELSS

Investment in ELSS	Tax Saved (5% bracket)	Tax Saved (20% bracket)	Tax Saved (30% bracket)
₹50,000	₹2,500	₹10,000	₹15,600
₹1,00,000	₹5,000	₹20,000	₹31,200
₹1,50,000	₹7,500	₹30,000	₹46,800

Use our Income Tax Calculator to see exact tax savings with ELSS investment.

Frequently Asked Questions

Can I withdraw ELSS before 3 years? +

No. ELSS has mandatory 3-year lock-in. Unlike other mutual funds, you cannot redeem ELSS units before 3 years from date of each SIP installment. Each installment separately has 3-year lock-in.

Is ELSS available in new tax regime? +

No, ELSS deduction under Section 80C is only available in Old Tax Regime. If you choose New Tax Regime, ELSS investment is still allowed but gives no tax deduction benefit. The mutual fund returns are still available to you.