Okay, let’s be honest right from the start, nobody enjoys talking about taxes. Unless you’re one of those rare birds who gets a weird thrill from reading Income Tax Act sections for fun (and if you are… hats off to you, truly). For the rest of us, tax-saving is that annual headache we deal with because, well, we’d rather give less to the taxman and keep more for ourselves. Right?

That’s where ELSS comes in. Equity Linked Savings Schemes. Now, I know that name sounds like something your bank manager might whisper to you across a mahogany desk. But stick with me here. ELSS funds are quite impressive in terms of tax-saving instruments.

They help you save tax under Section 80C (up to ₹1.5 lakh), sure. But more than that, they give you a shot at building real wealth over time. That’s not something you can say for PPFs or NSCs or those 5-year FDs your parents swear by. (No disrespect to those old-school options just calling it like it is.)

So, what are the best ELSS funds you should be looking at in 2025? Before we dive into names, and yes, I will name names, let’s take a quick detour and discuss why ELSS even deserves your attention this year. Because 2025 isn’t quite like the years before.

2025: A New Investment Climate

By now, you’re probably aware that markets have been, well… doing their thing. Some months they’re up, some months they’re falling like a drunk uncle at a wedding. Inflation has been playing hide-and-seek, the RBI’s monetary policy is dancing on a tightrope, and global uncertainty seems to be the new normal.

So, in a climate like this, you want investments that don’t just exist, but have the potential to beat inflation and give decent returns in the long run. And ELSS, with their equity exposure and relatively short lock-in of just 3 years (yep, that’s the lowest among all 80C options), might just be your best bet.

But here’s the thing: not all ELSS funds are created equal.

What Even Is a “Best” ELSS Fund?

Let’s not pretend there’s one magical mutual fund that’ll make all your tax problems vanish while doubling your money every three years. That unicorn doesn’t exist.

What does exist are ELSS funds with:

• Consistent long-term performance
• A solid fund management team
• Reasonable expense ratios
• And a track record of weathering different market cycles

But even beyond that, sometimes it’s about what feels right to you. Your risk appetite. Your financial goals. Your comfort with volatility. Numbers are important, yes, but gut feeling? That matters too. It’s your money, after all.

Alright. Let’s dive into some of the funds that, at least as of 2025, are looking like strong contenders.

Axis Long Term Equity Fund   Still Worth It?

For years, this one was the golden child. From around 2014 to 2019, Axis Long Term Equity Fund was killing it with top returns, massive AUM, and glowing reviews. But then it kinda… stumbled. Underperformance became a recurring theme for a few years.

But wait, don’t write it off just yet.

2023 saw a quiet recovery, and by mid-2024, the fund had slowly climbed back to more competitive returns. It’s not the hottest pick anymore, but it has matured. It feels like that reliable old friend who might’ve had a rough patch but is getting their act back together.

Would I bet all my 80C money on it? Probably not. But I wouldn’t ignore it either, especially if the turnaround continues into 2025. Sometimes, consistency after a stumble says more than uninterrupted performance.

Quant ELSS Tax Saver Fund   The Wild Card

Okay, now here’s the spicy one. Quant ELSS has been blazing. Its aggressive strategy and high-churn approach have led to eye-popping returns. If you had put money into it in the last couple of years, you’d probably be sitting with a smug smile on your face.

But, and this is a big but, it’s not for the faint of heart. This fund is like that friend who loves bungee jumping, trading crypto at 2 AM, and thinks rules are more like suggestions.

If you’ve got a high-risk appetite and you’re okay with the ride getting bumpy, Quant might give you the kind of returns that make other ELSS funds look like fixed deposits. Just go in with your eyes open. This isn’t your “safe” pick, it’s your “let’s take a shot” pick.

Mirae Asset Tax Saver Fund   The Balanced Performer

This one’s like Goldilocks. Not too hot, not too cold. Mirae Asset Tax Saver Fund has carved a name for itself by being quietly competent. Steady performance, moderate risk, a well-diversified portfolio… it’s the kind of fund that doesn’t scream for attention but wins you over with time.

What I like is that it’s not overly concentrated in any one sector, and the fund manager isn’t chasing trends just to pump returns. There’s a certain boring brilliance to it and I mean that as a compliment. If you’re looking for a core ELSS holding, this one deserves a seat at the table.

Kotak ELSS Tax Saver   The Steady Climber

Here’s a fund that has slowly and surely started getting noticed. It wasn’t always top of mind, but lately, Kotak ELSS has been delivering some pleasantly surprising performance. Especially during volatile patches, it hasn’t gone completely off the rails.

It feels like one of those funds that doesn’t promise the moon but consistently gets the basics right. Solid stock picks, decent asset allocation, reasonable cost. Sometimes, boring is beautiful especially when your money’s on the line.

DSP Tax Saver Fund   The Underdog

This one rarely makes the headlines, but I’ve been quietly impressed. DSP Tax Saver isn’t flashy. It doesn’t promise 25% annual returns or revolutionize your portfolio. But what it does offer is stable, long-term equity exposure with a tilt towards quality midcaps.

What I’ve found is that it works well when combined with a slightly more aggressive ELSS fund. Think of it like pairing a spicy curry with plain rice. It balances things out. You get the growth potential, but with a bit of cushioning.

SBI Long Term Equity Fund   The Dinosaur That Still Roars

This fund has been around forever. Or at least it feels like it. SBI Long Term Equity Fund is the veteran in the room one that’s seen booms, busts, and everything in between.

Is it exciting? Not really. Is it reliable? Kinda. It’s had phases of brilliance and phases of total mediocrity. But somehow, it always seems to make a comeback. If you’re someone who likes funds with history and don’t mind the occasional hiccup, this one might still work for you.

ICICI Prudential Long Term Equity   Cautiously Optimistic

Now, ICICI’s ELSS fund has had a roller-coaster journey. There were years when it ruled the charts, and years when it fell behind. But lately, there’s been a slight change in strategy less defensive, more balanced.

The fund now seems more confident in taking calculated risks, and that’s paying off. I wouldn’t put it in the top three, but it’s making a strong case to be in the top five. Sometimes, funds age like wine and this one might just be in that sweet phase.

A Little Detour: Should You Invest Lump Sum or SIP?

Before you get all excited and dump your ₹1.5 lakh into one fund in January, let me stop you there.

Unless you’re a market timing ninja (spoiler: most of us aren’t), doing a SIP Systematic Investment Plan is usually the smarter way to go. Spread your investments across the year. It evens out the market ups and downs and makes the lock-in periods easier to manage too. No point locking up all your money in a fund that underperforms for the next three years just because you rushed.

Trust me, I’ve been that guy.

Personal Take: What I’d Do in 2025

If I had to invest ₹1.5 lakh purely for 80C tax saving this year, I’d probably go with a split.

Maybe 50% in Mirae Asset Tax Saver for stability. 30% in Quant ELSS because I like a little thrill. And 20% in DSP Tax Saver for that underdog balance. I’d run SIPs across 10–12 months and just let them be.

Because here’s the thing about ELSS funds, they’re not just for tax-saving. They’re also a sneaky way to start building your equity exposure without overthinking it. And that 3-year lock-in? It’s a gift. It forces you to stay put. No panic selling. No impulse decisions. Just quiet, compounding progress.

Wrapping It Up (Before the Taxman Calls)

ELSS funds aren’t magic. They won’t solve all your financial problems. But they are one of the best tools we have, especially for salaried folks or freelancers trying to save taxes and grow wealth in one shot.

2025 is going to be unpredictable. Markets will swing. News will break. But if you choose your ELSS funds wisely, stay patient, and avoid the temptation to chase the next shiny thing, you’ll do just fine.

And who knows? Maybe, three years from now, you’ll look back at that ₹1.5 lakh investment and smile not just because it saved you tax, but because it helped you grow.