Which are the best schemes in the ELSS category?

I wish to invest Rs 5,000 monthly in mutual funds. Kindly advise a few fund names in ELSS category.
--Tilak Baishya

You have not mentioned whether you are looking to save taxes under Section 80C of the Income Tax Act. You should invest in Equity Linked Savings Schemes or ELSS only if you want to save taxes. Otherwise, you can invest in other equity mutual fund schemes like largecap, midcap, smallcap, balanced schemes based on your goals, investment period and risk profile.

ELSSs qualify for a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. These schemes come with a mandatory lock-in period of three years. However, you should invest in them with a longer horizon of five to seven years. These tax-saving schemes invest mostly in stocks and they are ideal for long-term wealth creation. Linking one of your long-term financial goals to your ELSS investment would help you to stay focused on your goal.


Here are our recommended ELSSs: Best tax saving mutual funds or ELSS to invest in 2017