26 ELSS mutual funds never delivered negative returns in last 3 calendar years, lost shine in 2025 so far

Around 26 ELSS or tax-saving mutual funds have never offered negative returns in the last three calendar years, according to an analysis of the performance of the category. There were around 38 funds in the category that have completed three years of existence in the market.

A further deep dive into the data showed that these funds have lost their shine in the current calendar year so far. There are around 39 schemes in the category in the current calendar year and all have offered negative returns so far ranging between -0.43% to -17.02%.

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Bandhan ELSS Tax Saver Fund never offered negative returns in the last three calendar years and has lost around 3.25% in the current calendar year so far. DSP ELSS Tax Saver Fund and Franklin India ELSS Tax Saver Fund have never offered negative returns in the last three calendar years but have lost around 2.11% and 5.12% respectively in the current calendar year so far.

HDFC ELSS Tax saver offered positive returns in 2022, 2023, and 2024 but lost around 0.43% in 2025 so far.

ICICI Pru ELSS Tax Saver Fund offered 2.32% in 2022, 23.24% in 2023, and 16.44% in 2024 and has delivered a minimal negative return of around 0.56% in 2025 so far. Kotak ELSS Tax Saver Fund and Mahindra Manulife ELSS Tax Saver Fund have never offered negative returns in the last three calendar years but have lost around 6.96% and 2.19% respectively in the current calendar year so far.Mirae Asset ELSS Tax Saver Fund and Motilal Oswal ELSS Tax Saver Fund also featured in the list of ELSS schemes that have never offered negative returns in the last three calendar years. The schemes have offered a negative return of 3.86% and 16.54% respectively in 2025 so far.

Quant ELSS Tax Saver Fund offered 12.25%, 30.44%, and 9.26% in 2022, 2023, and 2024 respectively, and went down by 4.86% in 2025 so far. SBI Long Term Equity Fund, the oldest ELSS fund, posted positive returns in the last three calendar years and lost 2.86% in 2025 so far.

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Axis ELSS Tax Saver Fund, the largest fund in the ELSS category, has also been around in the last three calendar years but in 2022 the scheme lost 11.97% and offered positive returns in 2023 and 2024. In 2025 so far, the scheme has lost 2.38%.

In the current calendar year so far, out of 39 schemes in the category, Samco ELSS Tax Saver Fund has lost the most by around 17.02% whereas HDFC ELSS Tax Saver Fund has lost the lowest by around 0.43% in the same period.

What is an ELSS mutual fund?

ELSS or tax saving schemes help investors to save income tax under Section 80C of the IT Act. One can invest a maximum of Rs 1.5 lakh in a financial year and claim deductions on investments in a financial year. ELSS funds invest in stocks and carry high risk. These schemes have a mandatory lock-in period of three years. This helps investors, especially new and inexperienced ones, to learn about the nature of equity markets and the volatility associated with it.

We considered all ELSS schemes available for investment in the market. We considered regular and growth options.

Note, the above exercise is not a recommendation. One should not make investment or redemption decisions based on the above exercise. One should always consider risk appetite, investment horizon, and goals before making investment decisions.

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