It's the time of the year when individuals are busy planning for the tax season. Among the many investment avenues for saving tax under Sec 80C is the Equity Linked Savings Scheme (ELSS). The real problem is the choosing of the best ELSS scheme from the number of ELSS schemes that are available.

What Are ELSS Schemes?

While there is always a possibility to grow your money, there is also a possibility to lose money. In the last few years, ELSS schemes have made more money than traditional fixed deposit schemes, which is why they are being increasingly preferred. We have made the choice easy for our readers by choosing some of the best ELSS schemes.

These are largely on the basis of returns generated in the last one year. As can be seen in the table below bulk of the funds have shown stupendous returns in the last one year. This is largely to do with the markets that have rallied after Narendra Modi tookover as the Prime Minister of the country.

Take a look at the ELSS Schemes that Have Top Performance in India

The above tax saving funds have given whopping returns in the last one year. It is almost impossible to replicate these returns in the next one year and if investors are looking at similar returns just forget it. Returns are going to be more nominal in the next few years.

Should you invest in ELSS?

There is no denying that Equity Linked Savings Schemes have generated returns in the last one year. As indicated, these are typically high risk instruments as compared to safer tax saving schemes like PPF, NSC, Bank Tax Savings deposits, but, at the same time can offer superior returns. Go for ELSS if you are ready to take the risk or else stock to the more traditional avenues.

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