Top 5 ELSS mutual funds to take care of 80C income tax needs

It is that time of the year when everyone is looking to invest their money in schemes like mutual funds, et al, to save on the dreaded income tax. 

With the investment deadline fast approaching, we bring you a list of top mutual fund schemes that can help you in saving income tax. 

The total amount eligible for deduction under Section 80C is Rs 1,50,000. Although, one must be aware that as this money is invested in stock markets and returns are based on performance of equity markets, these are 'high risk' investments. 

ELSS funds or Equity Linked Savings Scheme is a simple way to get tax benefits and invest your money in stock markets. 

ELSS funds get tax exemption under section 80(C) of the Income Tax Act. These funds have a lock-in period of three years. This means that you cannot withdraw your money invested in these ELSS mutual funds for a period of three years from the date of investment. 

FundsIndia.com says, "ELSS funds are one of the best avenues to save tax under Section 80C. This is because along with the tax deduction, the investor also gets the potential upside of investing in the equity markets. Also, no tax is levied on the long-term capital gains from these funds. Moreover, compared to other tax saving options, ELSS has the shortest lock-in period of three years."

Here are the top five ELSS mutual funds this year: 

Invesco india AGILE Tax Fund: This fund house gave returns of 10.12% in one year. As per yesterday's closing, the Net Asset Value was 10.34.

BNP Paribas Long Term Equity Fund - Direct Plan: In one year the investors got return of 9.51%. Till yesterday, its NAV was 29.95.

Reliance Tax Saver: This fund house gave return of 23.58% in one year. Till yesterday, its NAV was 50.18.

Escorts Tax Plan: In one year it gave returns of 29.40% to the investors. Till yesterday, its NAV was 72.93.

DSP BlackRock Tax Saver Fund: In one year it gave returns of 26.04%. Till yesterday, its NAV was 37.49.

Disclaimer: This story is for informational purposes only and should not be taken as an investment advice.