Invest Smart: Best 5 ELSS Funds for 2025 Delivering 24% Returns in 5 Years

1. SBI Long Term Equity Fund – Regular Plan

The SBI Long Term Equity Fund – Regular Plan is an equity mutual fund that is suitable for those investors who want to invest for at least three years and seek tax benefits and higher returns.

It has a Value Research Fund Rating of 5 stars. The fund has net assets of Rs. 27,305.51 crore. Over the past 5 years, it has delivered a return of 23.62%, while its 3-year returns stand at 24.38%. 1-year returns of 4.97%, 6-month returns of -11.93 %, and 3-month returns of -10.66 %. The fund has an expense ratio of 1.60%, making it a competitive option in the ELSS category.

2. HDFC ELSS Tax Saver Fund

The HDFC ELSS Tax Saver Fund is a best-selling tax-saving fund. It possesses a Value Research Fund Rating of 4 stars and controls net assets valued at Rs. 15,413.45 crore. In the short run, the fund experienced some volatility as 3-month returns are at -9.14 %, and 6-month returns stand at -10.01 %. Yet, its 5-year performance is stable, yielding 6.12% returns within 1 year, 21.93% within 3 years, and 21.51% within 5 years. The expense ratio of the fund is 1.67%, which puts it in good contention with other investors seeking tax savings coupled with wealth generation.

3. Motilal Oswal ELSS Tax Saver Fund – Regular Plan

Motilal Oswal ELSS Tax Saver Fund – Regular Plan has a 5-star Value Research rating with a net asset value of Rs. 3,876.23 crore. Although its short-term performance is declined (3-month returns: -23.40%, 6-month returns: -18.77%), its long-term growth remains healthy. It has given 1-year returns of 6.00%, 3-year returns of 21.06%, and 5-year returns of 18.07%. Its expense ratio stands at 1.87%, which provides a balance of tax savings and wealth accumulation.

4. DSP ELSS Tax Saver Fund

The DSP ELSS Tax Saver Fund is ranked 4-star by Value Research and has net assets worth Rs. 15,985.06 crore. Although its short-term performance has declined (3 months: -11.40%, 6 months: -12.88%), its long-term trend continues to be optimistic. The fund has yielded returns of 7.50% in 1 year, 18.18% in 3 years, and 20.27% in 5 years. Its expense ratio of 1.65% is a robust mix of tax efficiency and wealth creation.

5. Parag Parikh ELSS Tax Saver Fund- Regular Plan

The Parag Parikh ELSS Tax Saver Fund – Regular Plan is a 5-star-rated fund with net assets of Rs. 4,572.13 crore according to Value Research. While it has had minor short-term setbacks (3 months: -6.75%, 6 months: -6.62%), it has consistently recorded high long-term returns. It has returned 6.94% over 1 year, 17.44% over 3 years, and 22.24% over 5 years. At an expense ratio of 1.73%, it continues to be a reliable option for tax saving and wealth accumulation.