Ask ET Mutual Funds: Which ELSS should I invest?

I want to invest Rs 1.5 lakh in an ELSS fund. I want to distribute my investment in three to four ELSS funds to maximize my returns, minimize my risks and also to save taxes since I am in the 30 percent bracket. Please advise which ELSS funds will be the best for me.
-- Saurav Agarwal

Investing in Equity Linked Savings Scheme (ELSS) is the best way to save taxes under Section 80C. ELSSs have the shortest lock-in period of three years. Also, they also helps you to invest in equity which is the only way to earn inflation-beating returns over a long period. Experts recommend linking your ELSS investments with a long term financial goal.

Also, try to stagger your investment in ELSS over a year instead of investing a lumpsum. It helps to bring down the average cost of purchase and weather volatility in the equity market.


You can spread your investments in two ELSSs. These are our recommended ELSS schemes: Axis Long Term Equity Fund, Birla Sun Life Tax Relief 96, DSP BlackRock Tax Saver Fund and Franklin India Taxshield Fund.

For more: Read Four Equity linked Savings Schemes to invest this year

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