Published: November 22, 2025 • By InvestPlanner.in
Top 7 ELSS Funds for Tax Saving in India (2025)
Equity Linked Savings Schemes (ELSS) are among the most popular tax-saving investment options under Section 80C of the Income Tax Act. With the shortest lock-in of just 3 years and the potential for higher returns compared to traditional tax-saving tools, ELSS mutual funds are a favorite for both new and experienced investors.
But not all ELSS funds perform equally. To help you make an informed decision, here are the Top 7 ELSS Funds for 2025 based on long-term performance, consistency, risk management and fund manager expertise.
1. Mirae Asset Tax Saver Fund (Direct Growth)
Mirae Asset Tax Saver Fund has consistently ranked among the best-performing ELSS funds due to its strong focus on quality growth companies and disciplined risk management.
- Category: ELSS
- Fund Type: Equity (Multi-cap)
- 3-Year Returns: ~23% CAGR
- 5-Year Returns: ~20% CAGR
- AUM: ₹22,000+ Cr
- Risk Level: Moderately High
- Minimum SIP: ₹500
- Lock-in: 3 years
2. Axis Long Term Equity Fund (Direct Growth)
This fund invests heavily in large and stable companies, making it a solid pick for investors preferring lower volatility with tax-saving benefits.
- Category: ELSS
- Fund Type: Large & Mid Cap
- 3-Year Returns: ~17% CAGR
- 5-Year Returns: ~14% CAGR
- AUM: ₹30,000+ Cr
- Risk Level: Moderately High
- Minimum SIP: ₹500
- Lock-in: 3 years
3. Kotak Tax Saver Fund (Direct Growth)
Kotak Tax Saver Fund is known for its consistent performance across market cycles and strong portfolio diversification.
- Category: ELSS
- Fund Type: Multi-cap
- 3-Year Returns: ~18% CAGR
- 5-Year Returns: ~16% CAGR
- AUM: ₹4,800+ Cr
- Risk Level: Moderately High
- Minimum SIP: ₹500
- Lock-in: 3 years
4. Canara Robeco Equity Tax Saver Fund (Direct Growth)
This is one of the oldest and most stable ELSS funds, known for strong downside protection and steady long-term growth.
- Category: ELSS
- Fund Type: Large & Mid Cap
- 3-Year Returns: ~20% CAGR
- 5-Year Returns: ~18% CAGR
- AUM: ₹6,400+ Cr
- Risk Level: Moderate
- Minimum SIP: ₹500
- Lock-in: 3 years
5. SBI Long Term Equity Fund (Direct Growth)
SBI’s ELSS fund is a good choice for long-term investors seeking a high-quality mix of mid-cap and large-cap companies.
- Category: ELSS
- Fund Type: Multi-cap
- 3-Year Returns: ~15% CAGR
- 5-Year Returns: ~13% CAGR
- AUM: ₹11,000+ Cr
- Risk Level: Moderately High
- Minimum SIP: ₹500
- Lock-in: 3 years
6. ICICI Prudential Long Term Equity Fund (Direct Growth)
This fund is known for superior fund management, strong stock selection and long-term wealth creation potential.
- Category: ELSS
- Fund Type: Large & Mid Cap
- 3-Year Returns: ~16% CAGR
- 5-Year Returns: ~14% CAGR
- AUM: ₹9,200+ Cr
- Risk Level: Moderately High
- Minimum SIP: ₹500
- Lock-in: 3 years
7. Parag Parikh Tax Saver Fund (Direct Growth)
Known for its value investing approach, this fund has gained popularity for strong long-term compounding and low volatility.
- Category: ELSS
- Fund Type: Multi-cap (Value-oriented)
- 3-Year Returns: ~21% CAGR
- 5-Year Returns: ~18% CAGR
- AUM: ₹3,000+ Cr
- Risk Level: Moderate
- Minimum SIP: ₹1,000
- Lock-in: 3 years
Final Thoughts
Choosing the right ELSS fund depends on your investment horizon, risk appetite, and return expectations. For most investors with a long-term mindset, ELSS funds offer:
- High tax savings (up to ₹1.5 lakh under Section 80C)
- Wealth creation potential with equity exposure
- Shortest lock-in among all tax-saving options
Start early, stay invested for the long term, and choose funds with strong track records for the best results.
Final Thoughts
ELSS funds remain one of the smartest and most efficient ways to save tax while building long-term wealth. With just a 3-year lock-in and potential for high compounding returns, they outperform traditional tax-saving options like PPF and FD for many investors.
Always align your investment choice with your risk appetite, time horizon, and financial goals. Long-term SIPs in ELSS funds generally deliver more stable outcomes than lump-sum investments.