5 ELSS Mutual Funds with Returns between 103% to 117% in 3 years (1.5 Lakhs turned 3.25 Lakhs)

Investments in mutual funds carry a lower risk compared to investment in direct equity as they invest in a bunch of stocks instead of a single stock. Salaried individuals or investors who are looking for tax savings can invest in ELSS funds. Thanks to bull run where hundred’s of mutual funds have outperformed in the last few years. Do you know that there are 5 ELSS mutual funds that have outperformed and doubled investors’ money in the last 3 years along with providing income tax benefits? In this article we would provide a list of 5 ELSS Tax Saving Mutual Funds with 100% to 115% returns in the last 3 years where investment of Rs 1.5 Lakhs doubled to Rs 3.25 Lakhs.
How did we filter these ELSS Tax Saving Funds?
Considered all ELSS tax saving mutual funds (direct plans).

Filtered funds that generated high returns of over 26% returns in the last 3 years. This is irrespective of expense ratio or irrespective of the size of the AUM.
We could get 5 ELSS funds that generated 26.6% to 29.4% annualised returns in the last 3 years. These funds have turned Rs 1.5 Lakhs investments into over Rs 3.25 lakhs now.

5 ELSS Mutual Funds with Returns between 103% to 117% in 3 years
Here is the list of tax saving funds.
#1 – SBI Long Term Equity Fund – 117% returns in last 3 years
#2 – Quant ELSS Tax Saver Fund – 115% returns in last 3 years
#3 – HDFC ELSS Tax Saver Fund – 106% returns in last 3 years
#4 – Motilal Oswal ELSS Tax Saver Fund – 105% returns in last 3 years
#5 – JM ELSS Tax Saver Fund – 103% returns in last 3 years
5 ELSS Funds with Returns between 100% to 115% in 3 years – Deep Dive into these funds
Let’s get more into their performance, risk metrics and our view about these funds.
#1 – SBI Long Term Equity Fund
Investment objective:
The prime objective of the scheme is to deliver the benefit of investment in a portfolio of equity shares, while offering a deduction on such investment made in the scheme under section 80C of the Income-tax Act, 1961. It also seeks to distribute income periodically depending on distributable surplus.
Performance of the fund
3 Years Annualised Returns – 29.4% (1.5 Lakhs would have turned to Rs 3.25 Lakhs)
5 Years Annualised Returns – 25.9%
10 Years Annualised Returns – 17.2%
This fund has generated 18.1% annualised returns since inception of the fund. With AUM of Rs 23,888 Crores and expense ratio of 0.94% for direct plans, this is the top fund that has outperformed its peers in the last 3 years, 5 years and 10 years time frame.
This fund had the worst year where the NAV dropped by 33% during Mar-19 to Mar-20 due to covid and had best year where the NAV has increased by 93% during Mar-20 to Mar-21.
The regular plan of the mutual fund was launched 31 years ago and is one of the oldest mutual fund in India. Investors who are looking for tax savings u/s 80c with 3 year lock-in period can invest in such mutual fund schemes.
#2 – Quant ELSS Tax Saver Fund
Investment objective:
The Quant ELSS Tax Saver Fund’s primary objective is to generate capital appreciation by investing in a diversified portfolio of equity shares with growth potential. A secondary objective is to provide dividends and other income.
Performance of the fund
3 Years Annualised Returns – 28.9% (1.5 Lakhs would have turned to Rs 3.2 Lakhs)
5 Years Annualised Returns – 36.2%
10 Years Annualised Returns – 26.1%
This fund has generated 23.6% annualised returns since inception of the fund. With AUM of Rs 10,528 Crores and expense ratio of 0.77% for direct plans, this is the second fund that has outperformed its peers in the last 3 years, 5 years and 10 years time frame.
This fund had the worst year where the NAV dropped by 31% during Mar-19 to Mar-20 due to covid and had best year where the NAV has increased by 160% during Mar-20 to Mar-21.
Quant mutual funds have always been topping the charts with their unique investment strategy of VLRT (VLRT incorporates valuation, liquidity, risk, and timing). In fact this AMC AUM has been multiplied by 640+ times between 2020 to 2024. However, recently there was Quant Front Running case which is being investigated. Investors can wait and watch for any developments on this before taking investment decision. If you have already invested, you can continue till the front running case is concluded.
#3 – HDFC ELSS Tax Saver Fund
Investment objective:
To generate capital appreciation / income from a portfolio, comprising predominantly of equity & equity related instruments.
Performance of the fund
3 Years Annualised Returns – 27.2% (1.5 Lakhs would have turned to Rs 3.1 Lakhs)
5 Years Annualised Returns – 20.3%
10 Years Annualised Returns – 14.7%
This fund has generated 16.4% annualised returns since inception of the fund. With AUM of Rs 15,674 Crores and expense ratio of 1.13% for direct plans, this is the third fund that has outperformed its peers in the last 3 years, 5 years and 10 years time frame.
This fund had the worst year where the NAV dropped by 39% during Mar-19 to Mar-20 due to covid and had best year where the NAV has increased by 86% during Mar-20 to Mar-21.
The regular plan of the mutual fund was launched 28 years ago, and even this too is one of the oldest mutual fund in India. Investors who are looking for 80c tax savings and willing to lock the funds for 3 years can invest in such funds.
#4 – Motilal Oswal ELSS Tax Saver Fund
Investment objective:
The investment objective of the Scheme is to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related instruments.
Performance of the fund
3 Years Annualised Returns – 26.9% (1.5 Lakhs would have turned to Rs 3.07 Lakhs)
5 Years Annualised Returns – 25.6%
10 Years Annualised Returns – NA
This fund has generated 19.8% annualised returns since inception of the fund (Jan-2015). With AUM of Rs 3,710 Crores and expense ratio of 0.68% for direct plans, this is the fourth fund that has outperformed its peers in the last 3 years, 5 years and 9 years time frame.
This fund had the worst year where the NAV dropped by 27% during Mar-19 to Mar-20 due to covid and had best year where the NAV has increased by 84% during Mar-20 to Mar-21.
Investors who are looking for tax savings u/s 80c up to Rs 1.5 Lakhs with 3 year lock-in period can invest in such funds.
#5 – JM ELSS Tax Saver Fund
Investment objective:
The scheme aims at achieving long term growth of capital along with income tax relief for investment. At least 80% of the funds will be invested in equity instruments.
Investment upto Rs 1.5 Lakhs is eligible for income tax deduction u/s 80c during a financial year.
Performance of the fund
3 Years Annualised Returns – 26.6% (1.5 Lakhs would have turned to Rs 3 Lakhs)
5 Years Annualised Returns – 25.3%
10 Years Annualised Returns – 19.1%
This fund has generated 19.5% annualised returns since inception of the fund. With AUM of Rs 146 Crores and expense ratio of 1.13% for direct plans, this is the fifth fund that has outperformed its peers in the last 3 years, 5 years and 10 years time frame.
This fund had the worst year where the NAV dropped by 27% during Mar-19 to Mar-20 and had best year where the NAV has increased by 95% during Mar-20 to Mar-21.
Investors who want to grow their money and looking for tax savings u/s 80c up to Rs 1.5 Lakhs along with 3 year lock-in period can invest in such funds.

Suresh KP is the Founder of Myinvestmentideas. He is NISM Certified – Investment Adviser and NISM Certified – Research Analyst. He has been analyzing financial markets in the last 20 years.He can be reached at suresh@myinvestmentideas.com Latest posts by Suresh KP (see all)