According to the latest data as of July 5, 2026, Quant ELSS Tax Saver emerged as the best-performing ELSS fund over the past one year, delivering an annualised return of 9.40%. The performance rankings show significant variation among ELSS funds, with Motilal Oswal ELSS Tax Saver securing the second position at 4.87%, followed by Tata ELSS Fund at 3.62%. JM ELSS Tax Saver Fund and Baroda BNP Paribas ELSS Tax Saver Fund rounded out the top five with returns of 3.47% and 3.03% respectively.
As reported by Dalal Street Investment Journal, ELSS funds are Equity Linked Savings Schemes that remain one of the most popular tax-saving investment options for investors looking to claim deductions under Section 80C while participating in the long-term growth potential of equity markets. These funds offer tax savings and equity market growth potential, allowing investors to build wealth through equity market participation while claiming tax deductions under the specified section.
According to the analysis, while one-year returns offer a snapshot of recent performance, they should not be the sole criterion for selecting an ELSS fund. Since ELSS investments come with a mandatory three-year lock-in period, investors should also evaluate factors such as long-term performance across market cycles, portfolio quality, fund manager track record, risk-adjusted returns, and consistency before making an investment decision. The report emphasizes that a fund that tops the performance chart in one year may not necessarily maintain its leadership in the years ahead, making a broader evaluation essential.
