Top ELSS Funds Deliver Up to 20% CAGR in Decade, Beat Benchmarks

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Author Vihaan Mehta | Published :
Top ELSS Funds Deliver Up to 20% CAGR in Decade, Beat Benchmarks
Overview

Three Equity Linked Savings Schemes (ELSS) — Quant ELSS Tax Saver, Mirae Asset ELSS Tax Saver, and Motilal Oswal ELSS Tax Saver — have delivered annualized returns between 17.68% and 20.71% over the past decade. These funds significantly outperformed their benchmark, BSE 500 TRI, and the category average, offering tax benefits under Section 80C alongside wealth creation potential.

Top Performers Identified

Three Equity Linked Savings Schemes (ELSS) have distinguished themselves over the past decade, delivering robust returns that outpaced both their benchmark indices and the broader ELSS category average. Quant ELSS Tax Saver Fund, Mirae Asset ELSS Tax Saver Fund, and Motilal Oswal ELSS Tax Saver Fund represent leading options for taxpayers seeking to combine wealth creation with tax efficiency under Section 80C.

Quant ELSS: High-Octane Growth

The Quant ELSS Tax Saver Fund, managed by Quant Mutual Fund, leads the pack with a 10-year annualized return of 20.71%. Launched on January 1, 2013, this fund has garnered an Assets Under Management (AUM) of ₹12,403 crore as of December 31, 2025, with an expense ratio of 0.68%. While its performance has been stellar over the long term, it is characterized by high volatility, suitable for investors comfortable with sharp market swings.

Mirae Asset ELSS: Balanced Approach

Mirae Asset Mutual Fund's ELSS Tax Saver Fund, available since December 28, 2015, offers a more balanced profile. It has recorded a 10-year CAGR of 19.13%. With an AUM of ₹27,196 crore and an expense ratio of 0.57%, this fund is classified as very high risk but exhibits lower volatility compared to peers. It has consistently delivered better risk-adjusted returns, making it an attractive option for those seeking growth with relative stability.

Motilal Oswal ELSS: Mid-Term Strength

Motilal Oswal ELSS Tax Saver Fund, launched on January 21, 2015, has achieved a 10-year annualized return of 17.68%. Its AUM stands at ₹4,341 crore, with an expense ratio of 0.64%. This fund experienced significant underperformance in the short term (1 year) but showed a strong comeback in the medium term (3 years), demonstrating high-risk, high-reward potential suitable for patient investors.

Why ELSS Remains Crucial for Taxpayers

ELSS funds offer a unique combination of tax benefits and wealth creation potential. Investments qualify for a deduction up to ₹1.5 lakh under Section 80C, coupled with the shortest lock-in period of three years among all 80C options. Their equity orientation provides superior long-term return prospects compared to traditional fixed-income tax-saving instruments. These funds are best suited for investors with a long-term horizon, who can tolerate market volatility.