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Five tax-saving schemes that may fetch you great returns

Not only returns are tax-free after the lock-in period of three years, ELSS also offer you deduction of up to Rs 2 lakh under section 80C of the Income Tax Act.

Aseem Thapliyal        Last Updated: August 4, 2017  | 13:12 IST
Five tax saving schemes that may fetch you great returns

With annual increments shrinking and costs of living rising every day, tax payers are always engaged in finding ways they can save taxes. Their concern  is how to multiply savings for the future even as they invest in high-risk funds which also promise great returns. One such asset class is Equity Linked Saving Schemes (ELSS) that allow you to invest in equities through mutual funds.

Also read: This investment option offers higher returns than fixed deposits, PPF

Not only returns are tax-free after the lock-in period of three years, ELSS also offer you deduction of up to Rs 2 lakh under section 80C of the Income Tax Act.

Also read: These 4 jewellery stocks have earned over 500% in 4 years

We look at top five equity-linked savings schemes (according to Morningstar) which have given maximum returns in recent times.

Axis Long-Term Equity Fund  

The tax planning fund had assets worth Rs 13,544 crore on June 30, 2017. Its expense ratio was 1.97 percent. The fund was launched on December 29, 2009 and has returned 19.35 percent since then.

The open-ended fund has 0 percent exit load.

The fund has given 25.77 percent return on an year-to-date basis.  The fund's returns are benchmarked against BSE 200 which delivered 24.10 percent returns for the same period.

For the last six months preceding June 15, 2017, the fund gave 20.92 percent, 19.12 percent,  18.43 percent and 24.54 percent returns in six months, one year, three years and five years, respectively.

Principal Tax savings

The tax planning fund had assets worth Rs 331 crore on June 30, 2017. Its expense ratio was 2.56 percent. The fund was launched on March 31 1996 and has returned 17.36 percent since then.

The open-ended fund has 0 percent exit load.

The fund has given 31.23 percent returns on an year-to-date basis.  The fund's returns are benchmarked against BSE 200 which delivered 24.10 percent returns for the same period.

For the last six months preceding June 15, 2017, the fund gave 26.69 percent, 34.17 percent,  16.51  percent and 23.00 percent returns in six months, one year, three years and five years, respectively.

Reliance Tax Saver

The tax planning fund had assets worth Rs 8492 crore on June 30, 2017. Its expense ratio was 1.99 percent. The fund was launched on September 21, 2005 and has returned 16.37 percent since then.

The open-ended fund has 0 percent exit load.

The fund has given 27.59 percent returns on an year-to-date basis.  The fund's returns are benchmarked against BSE 100 which delivered 23.71 percent returns for the same period.

For the last six months preceding June 15, 2017, the fund gave 19.54 percent, 26.83 percent,  16.80  percent and 22.80 percent returns in six months, one year, three years and five years, respectively.


Birla Sun Life Tax Relief  96

The tax planning fund had assets worth Rs 3534 crore on June 30, 2017. Its expense ratio was 1.34 percent. The fund was launched on January 1, 2013 and has returned 26.12 percent since then.

The open-ended fund has 0 percent exit load.

The fund has given 26.12 percent returns on an year-to-date basis.  The fund's returns are benchmarked against BSE 200 which delivered 24.10 percent returns for the same period.

For the last six months preceding June 15, 2017, the fund gave 20.50 percent, 22.08 percent,  19.81  percent and 22.71 percent returns in six months, one year, three years and five years, respectively.

IDFC Tax Advantage

The tax planning fund had assets worth Rs 621 crore on June 30, 2017. Its expense ratio was 2.40 percent. The fund was launched on December 26, 2008 and has returned 21.10 percent since then.

The open-ended fund has 0 percent exit load.

The fund has given 33.30 percent returns on an year-to-date basis.  The fund's returns are benchmarked against BSE 200 which delivered 24.10 percent returns for the same period.

For the last six months preceding June 15, 2017, the fund gave 27.93 percent, 28.74 percent,  18.55 percent and 22.55 percent returns in six months, one year, three years and five years, respectively.


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