Introduction
If you’re looking to save taxes and grow wealth, Equity Linked Savings Schemes (ELSS) are one of the smartest options under Section 80C of the Income Tax Act. With a 3-year lock-in, ELSS funds offer the shortest holding period among tax-saving instruments — and they invest primarily in equities, giving you a shot at high returns.
Why Choose ELSS?
- Tax Deduction: Up to ₹1.5 lakh under Section 80C
- Shortest Lock-in: Just 3 years
- High Return Potential: Market-linked growth
- Wealth Creation: Ideal for long-term investors
Top ELSS Funds in 2026
1. Motilal Oswal ELSS Tax Saver Fund
- 3-Year Returns: ~25.16%
- Portfolio: High-conviction bets in large-cap and mid-cap stocks
- Volatility: Moderate
- Best For: Aggressive investors seeking alpha
2. SBI Long Term Equity Fund
- 3-Year Returns: ~24%
- Portfolio: Diversified across sectors
- Volatility: Balanced
- Best For: First-time ELSS investors
3. HDFC Tax Saver Fund
- 5-Year Leader: Tops long-term charts
- Portfolio: Value-oriented picks
- Volatility: Slightly higher
- Best For: Long-term wealth builders
Comparison Table
| Fund Name | 3-Year Returns | Risk Level | Lock-in | Best For |
|---|---|---|---|---|
| Motilal Oswal ELSS | ~25.16% | Moderate | 3 yrs | Aggressive investors |
| SBI Long Term Equity | ~24% | Balanced | 3 yrs | First-time investors |
| HDFC Tax Saver | ~22% | Slightly High | 3 yrs | Long-term planners |
Tips Before You Invest
- Start Early: Don’t wait till March — invest monthly via SIP.
- Risk Check: ELSS is market-linked — expect ups and downs.
- Diversify: Don’t put all ₹1.5 lakh in one fund.
- Stay Invested: Even after lock-in, let it grow for 5–10 years.
Conclusion
ELSS funds are a powerful combo of tax saving + equity growth. In 2026, funds like Motilal Oswal, SBI, and HDFC are leading the pack with strong returns and solid portfolios. Choose based on your risk appetite and investment horizon — and start early to maximize gains.