Top ELSS funds deliver over 17% annualized returns in last decade

Equity Linked Savings Schemes (ELSS) allow investors to save on taxes while potentially earning higher returns. Investors can claim tax deductions of up to Rs 1.5 lakh under Section 80C of the Income Tax Act for ELSS investments. Recent data shows that several ELSS funds have provided annualized returns over 17% in the past decade. For example, the Quant ELSS Tax Saver Fund has delivered a 10-year annualized return of 20.88%, significantly outperforming its benchmark. ELSS funds have a three-year lock-in period, shorter than other tax-saving options. They primarily invest in stocks, which can yield higher long-term returns but also carry risks. Investors should consider their investment horizon and risk tolerance before investing.