Paying income tax is probably very important for everyone
But in our income tax there are many provisions by investing in which
We can save income tax to a great extent
And such a provision is 80c
And under 80c comes ELSS
Equity Linked Savings Scheme
This is such a type of mutual fund, that if you invest in this
You can take up to a 1.5 lakh deduction on income tax
Today in this video I am going to talk about the top 5 ELSS funds
Which gave the best returns in the past three years
I, Jagdeep Singh, welcome you to the Groww channel
Let us start today's video in which we are going to talk about the Top 5 ELSS funds
Which ELSS mutual fund gave the best returns in the past three years
How much returns did those ELSS funds give?
And in which companies have they invested the most
Before going onto talking about mutual funds, I would like to tell you that if you haven't subscribed to our channel yet
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Because we put up 3-4 videos every week on this channel
Which can help you a lot in becoming a good and an intelligent investor
Let us go the fifth ELSS fund among the top
Which is the ELSS fund in the fifth place
Which gave very good returns in the past three years
Now, I will talk about the first mutual fund
Which ranks number 5 in terms of investment returns
And the name of this mutual fund is JM tax gain
This mutual fund has given around 14% return in the past three years
Which means that if you would've invested in this mutual fund three years ago
Then every year this would give you around 14% return
Which is a very good number if we compare it to bank FD
This number outperforms bank FD very well
But if I make a comparison to the past years returns
Then in the past year it has given more than 20% returns
Which is a very good return
Now I will tell you the two stocks in which this mutual fund has invested the most
If I talk about JM tax gain scheme, it has invested a lot in two stocks
And the name of those stocks are HDFC bank
And Bajaj Finance
We made a video on Bajaj finance a few days ago
In which we discussed in detail about Bajaj finance
If you want to see how to valuate Bajaj finance in detail
The link for that is in the description
You can watch the video about Bajaj finance there
Let us talk about the second mutual fund that ranks fourth in terms of mutual fund returns
But before going onto that I want to tell you a very interesting
That ELSS mutual fund is one type of multi cap mutual fund
If I tell you about multicap mutual fund in detail then it is one kind of mutual fund
That invest in all three, large cap, mid cap and small cap
Let us talk about the next mutual fund which is called Invesco India mutual fund
This mutual fund has given around 14% return in the past three years
If I talk about its returns in the past year then it has given a return of around 20%
But now I will talk about the two biggest stocks in which they have invested
So Invesco india tax plan scheme
Have made their biggest investment in HDFC bank and Reliance scheme
Which means that this mutual fund's biggest holding is in the large cap scheme
Let us talk about the third mutual fund
Which ranks third in terms of returns
And before talking about that I will tell you another interesting fact about ELSS mutual fund
If I talk about investment under 80c
Where you can take tax deduction
ELSS is such a scheme where the lock-in period is the least
Which means that if you invest in an FD to get deduction
There you have to invest for a minimum of five years
But in ELSS your lock in period is only for three years
And this is the minimum lock in period in terms of the investment options under 80c
If I talk about the next ELSS scheme then that us Canara Robeco Equity Tax saver plan
This is such a equity mutual fund that if you would've invested here three years ago
Then it would have given you a CAGR around 15%
Which means that every year you would get 15% return
If I talk about its one year returns in then in the past year this mutual fund has given a return of around 22.5%
Which is a very good number
If you compare that to any top performing mutual fund
Then it will turn out to be a very good number
If I talk about the two stocks this mutual fund has invested the most in
So this mutual fund has mainly invested in two stocks
And the name of those stocks are HDFC bank and ICICI bank
If I tell you another interesting this about Canara robeco bank then this mutual fund has given the best returns in January
In the ELSS category
If I talk about its returns then just in January
Canara Robeco has given around 2% return
Which, if we talk about monthly returns, is a very big number
Let us talk about that mutual fund that ranks second in terms of mutual fund returns
The name of this mutual fund is Mirae Asset Tax saver fund
If I talk about its returns in the past three years then it has given more than 16% returns
Which is a very big number
But if I talk about its one year returns
Then this mutual fund in the past year has given more than 20% returns
If I talk about the two biggest stocks that Mirae asset has invested in the most
The names of those two stocks are HDFC bank and Reliance industries
These two are large cap companies in which they have the most holdings
Now let us talk about that mutual fund that has given the highest returns in the category of ELSS mutual funds
But before going to that I will tell you two interesting facts
On which retail investors like you and I don't pay a lot of attention
If I talk about the first fact then you would have seen advertisements many times
That by investing in ELSS you can save up to 45,000
So where does this 45,000 come from
Now consider that you come in 30% bracket in tax filing
And if you invest 1.5 lakhs in ELSS mutual funds
You can take up to 1.5 lakhs deduction
So if you come in the 30% bracket
So on 1.5 lakhs you can save 45,000
From which the 45,000 number comes out
When someone talks about ELSS mutual fund
If I talk about the second interesting fact then retail investors like you and I, and a lot of people start SIPs
In ELSS mutual fund
So that the money gets cut every month and they get an average price for which they get good returns
But while investing they think that the lock in period is for three years
So after three years they can withdraw the money from here
But here you have to get out of this misconception
That whenever you invest in a mutual fund which we call ELSS
Then from investment until withdrawal there has to be a minimum gap of three years
So consider that you started an SIP in January 2020
You can withdraw it after three years, not before that
So if your SIPs are throughout the months
You can withdraw it after three years
It won't happen that if you made an SIP this year
Then after three years you can withdraw the entire amount
Let us talk about that mutual fund that give the highest returns in three years in the category of ELSS mutual funds
And the name of this mutual fund is Axis long term Equity mutual fund
If I talk about its returns then in the past three years
This mutual fund has given more than 16% returns
Which means that if you would've invested three years ago
Then every year you would get around 16% returns
So your invested money would've increased a lot if you would've invested here three years ago
But it is very important for any mutual fund
About how it performed in the past year
So if I talk about the past year then in the past year, this mutual fund
Gave a return of around 26%
Which is a very big number
Another interesting fact about this mutual fund
If I talk about ELSS mutual fund, then this fund's AUM, Asset under management is the most
Whose value is around 22,000 crores
If I talk about which stock this mutual fund invested in the most
This mutual fund's biggest investment is in two stocks
Whose names are Bajaj finance and Kotak Mahindra bank
So whatever mutual funds we spoke about in this video, we only has one agenda and that was to give you an idea
How good your returns can be by investing in ELSS mutual funds
We absolutely do not give you the advice to invest in a mutual fund
You have to choose yourself which mutual fund you want to invest in
Because like we tell you in every video
You have your personal risk, and where you invest has some risk
So according to you the risk that fits best for you, you should invest there
So friends, like I told you ELSS can be a very good option for you to save taxes
You get both the benefits, you get a tax deduction as well
And you get good returns as well
So if you haven't invested in ELSS in the financial year 19-20
You only have 45 days left
You can go and invest here
And you can get a deduction on the money invested here
By taking the deduction your income tax will also be saved
And you can get good returns on your invested money
So the mutual funds we used in this video were direct mutual fund schemes
About which we told you in detail
So if you liked this video, press the like button
Comment down below and let us know which ELSS mutual fund you think is the best for you
And you can give your reason behind that as well
So that everyone else can learn from your comment as well
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Happy investing!