ELSS mutual funds offer up to 22% XIRR on SIP investments in 3 years

With the tax-saving season approaching, investors are looking for ELSS mutual funds that have offered decent returns in the longer term or say in the last three years, the lock-in period in these funds. ETMutualFunds did some data crunching and found that these funds have offered up to 22% XIRR on SIP investments in the last three years.Around 11 funds delivered an XIRR of more than 15% in the last three years. SBI Long Term Equity Fund, the oldest fund in the category, delivered the highest XIRR of 22.20% in the last three years. A monthly SIP of Rs 1,000 in this fund would have been Rs 49,671 now.

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HDFC ELSS Tax saver delivered an XIRR of 19.22% in the last three years, followed by Motilal Oswal ELSS Tax Saver Fund which delivered an XIRR of 18.88% in the same period.

Parag Parikh ELSS Tax Saver Fund gave an XIRR of around 16.34% in the mentioned period. A monthly SIP in the fund would have been Rs 45,776 now. Nippon India ELSS Tax Saver Fund delivered an XIRR of 12.56% in the said period, followed by Invesco India ELSS Tax Saver Fund which delivered 12.52% XIRR in the last three years.

Kotak ELSS Tax Saver Fund delivered an XIRR of 10.86% in the last three years. If an investor did a monthly SIP of Rs 1,000 three years ago, the current value would have been Rs 42,321.Axis ELSS Tax Saver Fund, the largest fund in the category based on assets managed, gave an XIRR of 10.34% in the similar period. Mahindra Manulife ELSS Tax Saver Fund gave 9.68% XIRR in the above-mentioned period, followed by Sundaram Diversified Equity which gave an XIRR of 9.34%Quant ELSS Tax Saver Fund has offered an XIRR of 8.68%, followed by Navi ELSS Tax Saver Fund which gave an XIRR of 7.85% in the said period. Shriram ELSS Tax Saver Fund gave the lowest return of 5.34% in the last three years.

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What are ELSS mutual funds?

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 goal before making investment decisions.

If you are looking for recommendation, see: Best tax saving mutual funds or ELSS to invest in February 2025