Top ELSS Funds to consider for tax planning

There is only a month and a half till the end of the fiscal year, and therefore one final chance to take advantage of the deduction. We have identified the best ELSS for tax planning in this post.

In terms of tax planning, various deductions are available under various sections of the Income Tax Act. Deductions under section 80C of the Income Tax Act are among the most common. According to the current tax legislation, this provision allows for a deduction of up to Rs 1.5 lakh. Furthermore, you may obtain this through investing in a variety of routes such as public provident fund (PPF), life insurance policy premiums, including premiums for Unit Linked Insurance Plans (ULIP), Tax Saving Fixed Deposits, Equity Linked Saving Schemes (ELSS), and so on.  

One thing to keep in mind is that the deduction totals Rs 1.5 lakh. This means that you cannot claim a Rs 3 lakh deduction by investing Rs 1.5 lakh in PPF and ELSS. Even if you do, the highest deduction available to you is Rs 1.5 lakh. The most common question is whether PPF or ELSS is better for this purpose.  

Mutual fund brokers may recommend ELSS, whereas insurance salespeople may recommend life insurance. However, we believe that before making any investment decision, even if it is only for tax savings, you should first establish your risk tolerance level. As an example, if you are a moderate risk taker, we recommend you should invest 50 per cent each in PPF and ELSS.  

Having said that, we have identified the best 5 ELSS funds worth considering.