Best ELSS Tax Saver Funds in India in October 2026

Blacklitt Research27 October 20267 min read

Best ELSS tax saver funds. Top ELSS funds for tax saving, refreshed every month

What are ELSS funds?

An ELSS (equity linked savings scheme) is an equity mutual fund with a lock-in of three years. SEBI requires it to keep at least 80% of its assets in equity and equity-related instruments, and it must follow the Equity Linked Saving Scheme, 2005, notified by the Ministry of Finance.

Under the old tax regime, money put into an ELSS can be claimed as a deduction of up to ₹1.5 lakh a year under section 123 (formerly 80C). The new tax regime, which is the default, gives no deduction for it. The three years run from the date of each purchase, so each SIP instalment has its own lock-in.

Total funds: 40
Category fund size: ₹2.46 lakh crore
Average 1-year return: 0.44%
Average 3-year return: 10.87%

Direct plans, as of 30 September 2026

Top ELSS funds to invest in India in October 2026

These are 10 ELSS funds for this month, shown in no particular order. Their ranks are available only in the Blacklitt app: tap a fund to see its rank.

Fund	1Y return	3Y return	Expense ratio	Fund size
HDFC ELSS - Tax Saver FundRank: App exclusive	−7.02%	11.63%	0.96%	₹15,992 Cr
Motilal Oswal ELSS Tax Saver FundRank: App exclusive	9.51%	20.56%	0.63%	₹5,134 Cr
ITI ELSS Tax Saver FundRank: App exclusive	4.31%	16.03%	0.62%	₹463 Cr
WhiteOak Capital ELSS Tax Saver FundRank: App exclusive	3.07%	15.27%	0.63%	₹507 Cr
Edelweiss ELSS Tax saver FundRank: App exclusive	2.77%	12.33%	0.69%	₹462 Cr
HSBC ELSS Tax saver FundRank: App exclusive	3.74%	15.10%	0.96%	₹4,229 Cr
Baroda BNP Paribas ELSS Tax Saver FundRank: App exclusive	2.81%	14.04%	0.93%	₹930 Cr
JM ELSS - Tax Saver FundRank: App exclusive	7.94%	15.78%	0.93%	₹248 Cr
Tata ELSS - Tax Saver FundRank: App exclusive	3.62%	11.59%	0.68%	₹4,747 Cr
SBI ELSS Tax Saver FundRank: App exclusive	−4.16%	12.16%	0.83%	₹31,735 Cr

Direct plan, growth option. Returns as of 30 September 2026; the 3-year return is annualised. Fund size is the latest reported month-end.

ELSS funds returns calculator

See what an investment in one of these funds would have grown to. Choose a fund, a monthly SIP or a one-time lumpsum, an amount and a period.

Fund

Monthly SIPLumpsum

Invested and worth, year by year

Invested
Worth

Total investment: ₹6,00,000
Profit: ₹1,79,257
Current value: ₹7,79,257

This fund has generated an XIRR of 10.38% over the past 5 years.

See this fund in the app

Year-by-year numbers

Year	Invested	Worth
1	₹1,20,000	₹1,27,357
2	₹2,40,000	₹2,94,526
3	₹3,60,000	₹5,87,389
4	₹4,80,000	₹7,16,208
5	₹6,00,000	₹7,79,257

Based on the fund's past NAVs up to 30 September 2026, direct plan, growth option. SIP instalments are assumed on the same date each month. Exit load, taxes and other charges are not included. This shows what happened in the past and is not a forecast.

Details of the funds on this list

Let's take a closer look at these funds.

HDFC ELSS - Tax Saver Fund

Fund Performance: The HDFC ELSS - Tax Saver Fund has given 11.63% annualised returns in the past three years and 13.11% in the last five years. In the past year it has returned −7.02%.
Minimum Investment Amount: The minimum amount required to invest in HDFC ELSS - Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.
Expense Ratio and Fund Size: The direct plan of HDFC ELSS - Tax Saver Fund charges an expense ratio of 0.96% a year, and the fund's size is ₹15,992 Cr.

Motilal Oswal ELSS Tax Saver Fund

Fund Performance: The Motilal Oswal ELSS Tax Saver Fund has given 20.56% annualised returns in the past three years and 16.84% in the last five years. In the past year it has returned 9.51%.
Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.
Expense Ratio and Fund Size: The direct plan of Motilal Oswal ELSS Tax Saver Fund charges an expense ratio of 0.63% a year, and the fund's size is ₹5,134 Cr.

ITI ELSS Tax Saver Fund

Fund Performance: The ITI ELSS Tax Saver Fund has given 16.03% annualised returns in the past three years and 12.49% in the last five years. In the past year it has returned 4.31%.
Minimum Investment Amount: The minimum amount required to invest in ITI ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.
Expense Ratio and Fund Size: The direct plan of ITI ELSS Tax Saver Fund charges an expense ratio of 0.62% a year, and the fund's size is ₹463 Cr.

WhiteOak Capital ELSS Tax Saver Fund

Fund Performance: The WhiteOak Capital ELSS Tax Saver Fund has given 15.27% annualised returns in the past three years. In the past year it has returned 3.07%.
Minimum Investment Amount: The minimum amount required to invest in WhiteOak Capital ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.
Expense Ratio and Fund Size: The direct plan of WhiteOak Capital ELSS Tax Saver Fund charges an expense ratio of 0.63% a year, and the fund's size is ₹507 Cr.

Edelweiss ELSS Tax saver Fund

Fund Performance: The Edelweiss ELSS Tax saver Fund has given 12.33% annualised returns in the past three years and 11.10% in the last five years. In the past year it has returned 2.77%.
Minimum Investment Amount: The minimum amount required to invest in Edelweiss ELSS Tax saver Fund via lump sum is ₹500 and via SIP is ₹500.
Expense Ratio and Fund Size: The direct plan of Edelweiss ELSS Tax saver Fund charges an expense ratio of 0.69% a year, and the fund's size is ₹462 Cr.

HSBC ELSS Tax saver Fund

Fund Performance: The HSBC ELSS Tax saver Fund has given 15.10% annualised returns in the past three years and 12.48% in the last five years. In the past year it has returned 3.74%.
Minimum Investment Amount: The minimum amount required to invest in HSBC ELSS Tax saver Fund via lump sum is ₹500 and via SIP is ₹500.
Expense Ratio and Fund Size: The direct plan of HSBC ELSS Tax saver Fund charges an expense ratio of 0.96% a year, and the fund's size is ₹4,229 Cr.

Baroda BNP Paribas ELSS Tax Saver Fund

Fund Performance: The Baroda BNP Paribas ELSS Tax Saver Fund has given 14.04% annualised returns in the past three years and 10.98% in the last five years. In the past year it has returned 2.81%.
Minimum Investment Amount: The minimum amount required to invest in Baroda BNP Paribas ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.
Expense Ratio and Fund Size: The direct plan of Baroda BNP Paribas ELSS Tax Saver Fund charges an expense ratio of 0.93% a year, and the fund's size is ₹930 Cr.

JM ELSS - Tax Saver Fund

Fund Performance: The JM ELSS - Tax Saver Fund has given 15.78% annualised returns in the past three years and 13.45% in the last five years. In the past year it has returned 7.94%.
Minimum Investment Amount: The minimum amount required to invest in JM ELSS - Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.
Expense Ratio and Fund Size: The direct plan of JM ELSS - Tax Saver Fund charges an expense ratio of 0.93% a year, and the fund's size is ₹248 Cr.

Tata ELSS - Tax Saver Fund

Fund Performance: The Tata ELSS - Tax Saver Fund has given 11.59% annualised returns in the past three years and 11.36% in the last five years. In the past year it has returned 3.62%.
Minimum Investment Amount: The minimum amount required to invest in Tata ELSS - Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.
Expense Ratio and Fund Size: The direct plan of Tata ELSS - Tax Saver Fund charges an expense ratio of 0.68% a year, and the fund's size is ₹4,747 Cr.

SBI ELSS Tax Saver Fund

Fund Performance: The SBI ELSS Tax Saver Fund has given 12.16% annualised returns in the past three years and 13.86% in the last five years. In the past year it has returned −4.16%.
Minimum Investment Amount: The minimum amount required to invest in SBI ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.
Expense Ratio and Fund Size: The direct plan of SBI ELSS Tax Saver Fund charges an expense ratio of 0.83% a year, and the fund's size is ₹31,735 Cr.

How do ELSS funds work?

A mutual fund pools money from many investors and a fund manager invests it. In an ELSS, the manager buys shares, mostly of companies of different sizes, so the fund's value follows how those shares perform.

You buy units of the fund at its net asset value (NAV), the price of one unit, which is worked out at the end of each trading day. When the shares in the portfolio rise, the NAV rises, and when they fall, the NAV falls.

The difference from other equity funds is the lock-in: you cannot sell the units for three years from the date you buy them. Returns come from growth in the share prices of the companies the fund holds, and sometimes from dividends they pay.

Every fund has an expense ratio, a yearly fee charged as a percentage of its assets. A direct plan has a lower expense ratio than the regular plan of the same fund, because it does not pay a distributor. Many funds also charge an exit load if you sell within a set period, often a year, so check the scheme document before you invest.

Who should invest in ELSS funds?

Whether an ELSS fits you depends on how its benefits and its risks sit with your tax regime, your goals and your comfort with locking money away.

Benefits of ELSS funds

A deduction of up to ₹1.5 lakh a year in the old tax regime.
The three-year lock-in can help you stay invested through short-term falls, because you cannot sell in a panic.
Equity exposure that, in many ELSS funds, spreads across companies of different sizes.
A professional fund manager picks and monitors the stocks, and you can start with a small amount through a SIP or a lumpsum.

Risks of ELSS funds

Your money is locked in for three years. You cannot sell before then, even if the fund falls or you need the cash.
Equity risk: an ELSS can fall sharply in a market downturn and can take years to recover.
There is no deduction in the new tax regime, so the tax benefit depends on which regime you choose.
Returns are not guaranteed, and a fund that did well in the past may not do so again.

In short, an ELSS combines an equity fund with a built-in three-year lock-in and, in the old tax regime, a tax deduction. It suits investors who are in the old regime, can leave the money alone for at least three years, and want equity exposure.

Who ELSS funds may suit

Investors in the old tax regime who have room left under the ₹1.5 lakh limit.
Investors who can leave the money alone for three years and, because shares can stay down for a while, ideally for five years or more.
Investors who can handle swings in value without selling in a fall.

Who should be careful

Investors in the new tax regime, because there is no deduction and the lock-in is then the main difference from other equity funds.
Investors who may need the money within three years, because it cannot be withdrawn.
Investors who would be uncomfortable seeing their investment fall by a large amount.

Taxation on ELSS funds

There are two parts to the tax on an ELSS: the deduction when you invest, and the tax on your gains when you sell.

The deduction: in the old tax regime you can claim up to ₹1.5 lakh a year under section 123 (formerly 80C). In the new tax regime there is no deduction.
The gains: an ELSS is an equity-oriented fund, and because of the three-year lock-in every gain is long-term. Gains up to ₹1.25 lakh in a financial year are tax-free, and gains above that are taxed at 12.5%.

The ₹1.25 lakh limit applies to all your equity fund and share sales in the year together, not to each fund. Each SIP instalment has its own purchase date and its own lock-in, so when you sell, the older instalments are treated as sold first.

Tax rules can change, so check the current rules or ask a tax adviser before you invest or sell.

Frequently asked questions

Is ELSS a good investment?

An ELSS can suit investors in the old tax regime who want equity exposure and can leave the money alone for at least three years. It carries equity risk and the lock-in means you cannot sell early, so whether it is right for you depends on your tax regime, your goals and how you would react to a fall.

How long is the ELSS lock-in?

Three years from the date of each purchase. With a SIP, each instalment is locked in for three years from its own date, so the units bought first become free first.

Does ELSS save tax in the new tax regime?

No. The new tax regime gives no deduction for ELSS investments. The deduction of up to ₹1.5 lakh a year under section 123 (formerly 80C) is available only in the old tax regime.

How much can I invest in ELSS?

There is no upper limit on how much you can invest, but the deduction in the old tax regime is capped at ₹1.5 lakh a year, together with your other investments that qualify under the same section.

Is a SIP or a lumpsum better for ELSS?

A SIP spreads your purchases across many months, so you do not put everything in at one price. This can smooth out the effect of a volatile market. A lumpsum invests everything at once. Neither is always better, and the returns calculator above lets you compare how each would have turned out for a fund in the past. Each SIP instalment has its own three-year lock-in.

Is ELSS risky?

Yes. An ELSS invests mainly in shares, so it can fall sharply in a downturn and may take a long time to recover. The lock-in means you cannot sell during that time, even if you want to.

How are ELSS funds taxed?

Because of the three-year lock-in, every gain is long-term: gains up to ₹1.25 lakh in a financial year are tax-free, and gains above that are taxed at 12.5%. The deduction when you invest is available only in the old tax regime.

Which is the best ELSS fund?

There is no single best fund for everyone. The list above shows 10 ELSS funds in no particular order. To see their ranks, open the Blacklitt app.

Disclaimer

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

The funds on this page are shown for information and education, with figures as of 30 September 2026. Past performance does not indicate future returns. This is not personalised investment advice or a recommendation to buy or sell any fund, so check that a fund suits your own goals, time horizon and risk appetite, or speak to an adviser, before you invest.

Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

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