Top three ELSS schemes to invest in

Come year end and most investors scan for top performing equity linked savings schemes(ELSS) as the tax planning takes centre stage.  With the kind of returns the ELSS have been giving over past few years, investors may have little doubt on the merits of ELSS investing.

Axis Long Term Equity Fund with its phenomenal track record stands numero uno followed by DSP Blackrock Tax Saver Fund and Franklin India Tax Shield Fund.

Three year and five period performance highlights Axis long term equity fund’s outperformance with 28.51 per cent and 22.41 per cent CAGR returns respectively. The expense ratio for the fund is 1.98, which is one of the best in the category helped by large assets under management (AUM) at Rs 10,465 crore.

DSP Blackrock Tax Saver Fund with an impressive one year return of 20 per cent has caught investors’ attention. The fund over three and five years has delivered 26.71 per cent and 21.19 per cent respectively on an annualised basis. The expense ratio for the fund is 2.61, slightly on the higher side.

Franklin India Tax Shield Fund with annualised 24.84 per cent returns over three years period and 18.51 per cent returns over a five year period stands out in the category.