Each SIP instalment has separate 3-year lock-in from date of investment
Available under Old Tax Regime only — New Regime does not allow 80C
Best ELSS Funds 2026 — Performance Comparison
Fund Name
1 Year Return
3 Year CAGR
5 Year CAGR
Expense Ratio
Quant ELSS Tax Saver Fund
22.4%
25.8%
28.2%
0.57%
Canara Robeco ELSS Tax Saver
18.2%
16.4%
19.8%
0.55%
Mirae Asset Tax Saver Fund
17.6%
15.2%
18.9%
0.55%
SBI Long Term Equity Fund
16.8%
17.4%
17.2%
0.72%
DSP Tax Saver Fund
15.4%
14.8%
16.5%
0.73%
Axis Long Term Equity Fund
12.8%
11.2%
14.6%
0.65%
Past performance disclaimer: Returns shown are historical and do not guarantee future returns. ELSS funds invest in equities and are subject to market risk. Choose based on long-term (5-10 year) track record rather than 1-year performance. Diversify across 2-3 ELSS funds rather than putting all in one.
How to Invest in ELSS
Via SIP: Set up monthly SIP of Rs 12,500 to cover full Rs 1.5L 80C limit
Via lump sum: Invest Rs 1.5L at start of financial year (April) for maximum compounding
Direct plan: Always choose Direct plan (no distributor commission) — saves 0.5-1% annually
Growth option: Choose Growth (not Dividend) for compounding benefit
Platforms: Zerodha Coin, Groww, Kuvera, Paytm Money — all offer ELSS at zero commission
ELSS vs Other 80C Investments
ELSS: 12-18% returns, 3-year lock-in, market risk
PPF: 7.1% guaranteed, 15-year lock-in, zero risk
NPS: 9-12% returns, lock-in till 60, partial withdrawal allowed
Based on consistent long-term performance, Quant ELSS Tax Saver Fund (high returns, higher volatility), Mirae Asset Tax Saver Fund (consistent, large-cap oriented) and Canara Robeco ELSS Tax Saver (consistent, lower volatility) are top picks for 2026. Rather than choosing one fund, invest in 2-3 funds to diversify. Always check 5-year track record, expense ratio and fund manager consistency.
ELSS funds have a mandatory lock-in period of 3 years from date of investment. Each SIP instalment has its own 3-year lock-in — so April 2026 SIP unlocks in April 2029, May 2026 SIP unlocks in May 2029, and so on. After 3 years you can redeem, continue holding or switch to another fund. You don't have to redeem after lock-in — most investors continue for 7-10 years for maximum returns.
The maximum 80C deduction limit is Rs 1.5 lakh per year — so maximum tax benefit from ELSS is Rs 1.5 lakh. However you can invest more than Rs 1.5L in ELSS — the additional amount above Rs 1.5L doesn't get 80C benefit but still participates in equity market returns. There is no upper limit on ELSS investment — only the 80C tax benefit is capped at Rs 1.5L.
📋 Sources & Methodology
Data sourced from: RBI official website · Official bank websites · SEBI · IRDAI · Ministry of Finance press releases. Rates and data verified by FinMandi Research Team. Last verified: May 2026. FinMandi does not accept payment to rank any bank or product.
Disclaimer: All information is as of May 2026. For educational purposes only. Verify with relevant institutions before making decisions.