Top ELSS Mutual Funds In India: Best Tax-Saving Schemes By Latest 1-Year Returns

Looking for the best ELSS fund to save tax? Check the top five tax-saving mutual funds ranked by one-year returns as of July 2026.

See why experts say recent performance shouldn't be your only investment criterion.

Source : ABPLIVE AI

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Key points generated by AI, verified by newsroom

• ELSS funds offer tax savings and equity market growth potential.
• Quant ELSS Tax Saver led 1-year returns at 9.40% recently.
• Significant performance variations exist among ELSS funds recently.

Equity Linked Savings Schemes (ELSS) remain one of the most popular Tax-saving investment options for investors looking to claim deductions under Section 80C while participating in the long-term growth potential of equity markets. Along with tax benefits, these funds offer an opportunity to build wealth, although returns can vary significantly depending on market conditions and fund strategy.

Based on the latest data as of July 5, 2026, Quant ELSS Tax Saver emerged as the best-performing ELSS fund over the past one year, delivering an annualised return of 9.40%. Although these funds delivered positive returns, the gap between the top-ranked scheme and the rest highlights the wide dispersion in performance across ELSS funds over the past year.

Top ELSS Funds by 1-Year Returns

Rank Fund 1-Year Return

1 Quant ELSS Tax Saver 9.40%

2 Motilal Oswal ELSS Tax Saver 4.87%

3 Tata ELSS Fund 3.62%

4 JM ELSS Tax Saver Fund 3.47%

5 Baroda BNP Paribas ELSS Tax Saver Fund 3.03%

Should Investors Choose a Fund Based Only on Recent Returns?

While one-year returns offer a snapshot of recent performance, they should not be the sole criterion for selecting an ELSS fund. Since ELSS investments come with a mandatory three-year lock-in period, investors should also evaluate factors such as long-term performance across market cycles, portfolio quality, fund manager track record, risk-adjusted returns, and consistency before making an investment decision. Additionally, a fund that tops the performance chart in one year may not necessarily maintain its leadership in the years ahead, making a broader evaluation essential. 

(“Disclaimer: This article uses information originally published by Dalal Street Investment Journal (DSIJ). The views expressed are those of the original authors and not necessarily of ABP Network Pvt. Ltd. This content is provided for general informational and educational purposes only and should not be construed as investment, financial, legal or tax advice. Readers are advised to conduct their own research and/or consult a qualified financial advisor before making any investment decisions. This content is for informational purposes only and should not be treated as investment advice. ABP Network, its employees and associates shall not be responsible or liable for any losses or damages arising directly or indirectly from the use of or reliance on this article or any information contained herein.”)