Equity-Linked Savings Scheme (ELSS) offers investors a dual advantage of wealth creation and tax savings through equity investments. According to reports from Business Standard, ELSS allows investors to gain higher returns in the long-term on a comparatively shorter lock-in period of three years. The scheme enables diversification across diverse companies from largecap to smallcap, and different sectors, with no maximum tenure limit for investment. Recent performance data shows ELSS funds delivering 12-16% returns compared to traditional tax-saving alternatives.
Investors can start ELSS investments with a minimum amount of ₹500 through Systematic Investment Plans (SIPs). As reported by Business Standard, the scheme allows for small initial investments while providing flexibility for regular contributions. The lock-in period restricts redemption, selling, or withdrawal of invested money during the 3-year minimum period, though there is no maximum tenure limit for investment. Recent fund data shows SBI ELSS Tax Saver Fund NAV at ₹466.2751 as of June 16, 2026, with an AUM of ₹31,093.9 crore.
When compared to tax-saving alternatives, ELSS demonstrates superior performance potential. According to Business Standard reports, ELSS offers returns at an interest rate of 12%-16% compared to Public Provident Fund (PPF) returns of 7-8%. The scheme also provides better returns than tax-saving fixed deposits while maintaining higher risk-adjusted returns for long-term wealth creation. Recent fund comparisons show SBI ELSS Tax Saver Fund delivering 18.76% returns over the past year, with other ELSS funds like Motilal Oswal and Quant delivering 23.756% and 18.1056% respectively.
Recent fund performance data reveals significant variations in ELSS fund returns across different schemes. Motilal Oswal ELSS Tax Saver Fund has emerged as the top performer with 23.6% returns over 1 year and 23.58% returns over 3 years, maintaining its position as the #1 ranked fund in the Equity ELSS category. Other notable performers include WhiteOak Capital ELSS Tax Saver Fund with 18.36% returns over 3 years and HDFC ELSS Tax Saver Fund delivering 16.25% returns over the same period. The category average for Equity ELSS funds stands at 16.4% over 1 year and 14.0% over 3 years, highlighting the performance disparity among different schemes.
Invesco India ELSS Tax Saver Fund Direct Growth has joined the competitive ELSS landscape with impressive recent performance. The fund, managed by Deepesh Kashyap since July 2025, currently holds an AUM of ₹2,536 crore as of June 2026, with a Latest NAV of ₹52.64. The fund has delivered 15.82% CAGR returns since inception and 13.61% returns over 3 years, ranking at #25 out of 30 funds in the Equity ELSS category. With a minimum SIP investment of ₹500 and minimum lumpsum investment of ₹500, the fund maintains a Very High risk rating while seeking long-term capital growth with 80% equity allocation and up to 20% debt allocation.
