Best ELSS Mutual Funds you should be investing in for 2022

A Best Rated ELSS (Tax Saving) Fund By Value Research: Should You Invest in  2022? - Goodreturns
An equity-linked savings scheme or ELSS, as it is popularly known, is a type of mutual fund that invests in equity. ELSS funds have a minimum lock-in period of three years. These mutual funds are also referred to as tax saving funds as they offer a tax exemption of up to Rs. 1.5 lakh in a financial year under Section 80C of the Income Tax Act, 1961. High returns of equity and tax savings can offer you a twin advantage that can maximize your gains. 

If you are thinking of investing in ELSS mutual funds in 2022, here are some options to consider:

  1. Axis Long Term Equity Fund: This mutual fund scheme has delivered returns averaging 20.76% since its inception. 65 to 70% of the fund’s capital is invested in large cap companies and the remaining in small and mid-cap companies. The expense ratio is 0.74%, and the fund size or AUM (asset under management) is valued at Rs. 34,235 crore. This is one of the best mutual funds for investors looking to invest in equity. The minimum investment for SIP and lump sum investments is only Rs. 500. 
  2. BNP Paribas Long Term Equity Fund: This fund invests 52.44% of its money in large cap companies, 12.86% in mid-cap companies, and 15.86% in small cap companies. The expense ratio is relatively higher at 2.37%. The fund size is estimated to be at around Rs. 556.91 crore. The minimum investment for SIP and lump sum investments is slightly higher at Rs. 1000. The returns since inception for this fund are estimated at around 16%.
  3. DSP Tax Saver Equity Fund: This is one of the most reliable mutual funds in the ELSS category. The fund’s returns since inception have been 18.07%. The fund’s AUM is Rs. is 9,805 crore and the expense ratio is low at 0.81%. The minimum investment for SIP and lump sum investments is only Rs. 500. 
  4. Invesco India Tax Plan Fund: This is another great option for long term mutual funds. The fund’s AUM is Rs.1,898 crore, and its expense ratio is 0.88%. The minimum investment for SIP and lump sum investments is Rs. 500. Moreover, this ELSS scheme has delivered 18.96% returns since its inception.
  5. Kotak Tax Saver Fund: Launched in 2005, this flexi-cap fund has delivered 16.36% returns since inception. The fund size is Rs.2,323 crore, and the expense ratio is 0.72%. The minimum investment for SIP and lump sum investments is Rs. 500. 
  6. Mirae Asset Tax Saver Fund Direct-Growth Fund: 65 to 70% of the fund’s capital is invested in large cap stocks and the remaining small and mid-cap stocks. The minimum investment for SIP and lump sum investments is Rs. 500. The fund has delivered 22.4% returns since inception. The expense ratio for this mutual fund is quite low at 0.43%. The fund’s AUM is Rs.10,146 crore. 

To sum it up

These are just six of the best ELSS mutual funds you can invest in in 2022. However, there are many more. You can browse through the Tata Capital Moneyfy app for more options and invest your money accordingly.