Mutual Funds Under 80C for Tax Saving In India 2025

Mutual funds under Section 80C are basically ELSS mutual funds. ELSS stands for Equity Linked Savings Scheme. These are the only mutual funds that give you a tax benefit under Section 80C of the Income Tax Act. ELSS funds invest mainly in shares of companies. Since they are linked to the stock market, their value moves up and down with market conditions. Here we will cover some of the ELSS mutual funds, along with ELSS fund selection tips, benefits and risks.

Top Mutual Funds Under 80c in India

Here is a list of the top Section 80C mutual funds in India:

Disclaimer: Please note that the above list of the best ELSS mutual funds is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.

Note: The data on the list of the best tax benefit mutual funds is from 10th November 2025. This data is derived from the Tickertape Mutual Funds Screener.

• AUM: Sorted from Highest to Lowest

🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate ELSS for tax saving with over 50+ pre-loaded filters and parameters.

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Overview of the Top 10 Funds Under 80C

Axis ELSS Tax Saver Fund

This fund invests mainly in equities and follows a long-term, growth-focused approach. It offers tax benefits under Section 80C with a three-year lock-in and aims to build wealth over time.

SBI ELSS Tax Saver Fund
SBI’s ELSS fund spreads investments across large, mid, and small-cap companies. It provides tax deductions under Section 80C and aims to create long-term value through diversified equity exposure.

Mirae Asset ELSS Tax Saver Fund
This fund focuses on high-quality companies with strong fundamentals. It offers tax savings under Section 80C and follows a growth-oriented investment style within the mandatory three-year lock-in.

HDFC ELSS Tax Saver
HDFC’s ELSS fund invests in a mix of large and mid-cap stocks. It aims for long-term capital appreciation while offering tax benefits under Section 80C and a three-year lock-in period.

DSP ELSS Tax Saver Fund
DSP’s ELSS fund follows a diversified equity strategy with an eye on stability and long-term growth. It qualifies for Section 80C tax deductions and has a mandatory three-year lock-in.

Nippon India ELSS Tax Saver Fund

This fund invests across market segments and aims to capture long-term opportunities in equities. It provides tax benefits under Section 80C along with a three-year lock-in period.

Aditya Birla SL ELSS Tax Saver Fund
Aditya Birla’s ELSS fund follows a diversified equity approach, investing in companies across sectors. It offers Section 80C tax deductions and aims to grow wealth over the long term.

ICICI Pru ELSS Tax Saver Fund
This fund mixes large, mid, and small-cap companies within its portfolio. It offers tax savings under Section 80C and focuses on long-term capital appreciation during the three-year lock-in.

Quant ELSS Tax Saver Fund
Quant’s ELSS fund uses a dynamic, data-driven investment style. It qualifies for Section 80C tax benefits and aims to identify opportunities across market cycles.

Canara Rob ELSS Tax Saver
This fund invests mainly in equities with a diversified, long-term approach. It provides a tax deduction under Section 80C and comes with a mandatory three-year lock-in.

What Are Mutual Funds Under 80c?

Mutual funds under Section 80C are called ELSS funds. These are equity mutual funds that qualify for tax deductions under the Income Tax Act. Investors can claim a tax benefit of up to ₹1.5 lakh in a financial year under Section 80C. ELSS funds invest in shares of companies; this means the value of your investment can rise or fall depending on market conditions. They also come with a mandatory three-year lock-in period, which is the shortest among all 80C options.

Taxation on ELSS Mutual Funds

ELSS funds follow equity taxation rules because they invest mainly in stocks. They come with a three-year lock-in, so any profit you make is always treated as long-term capital gains. The tax rules for ELSS are straightforward and easy to understand, as shown in the table below.

How to Invest in the Best ELSS Mutual Funds in India?

You can easily start to invest in the best mutual funds under 80c in India by following these steps.

1. To invest in the ELSS mutual funds in India, you can visit an equity investment platform such as smallcase.
2. The next step is to research and identify the ELSS mutual fund for long-term or short-term, based on your investment thesis. Tools like the Tickertape Mutual Fund Screener can help you filter and compare funds based on parameters such as returns, expense ratio, and fund size.
3. Once you shortlist the 80C investment options, visit smallcase, log in, and search for the fund by name. You can then choose the investment mode, either a one-time lump sum or an 80C mutual fund investment SIP plan, and complete the process.

Features of Mutual Funds Under Section 80C

• Swift Access: ELSS funds come with a three-year lock-in period, which is shorter than most other Section 80C options. This gives quicker access to your money while still meeting tax-saving requirements.
• Equity-based Growth: ELSS mutual funds invest mainly in equities, giving your investment exposure to market-linked growth, which can influence returns based on market movements.
• Withdrawals After Lock-in: ELSS has a mandatory three-year lock-in. After this period, you can redeem units, and the applicable LTCG tax rules will apply at the time of withdrawal.
• Dividend Payments: Some ELSS schemes offer dividends during the lock-in period. Any dividends received are taxable as per your income tax slab.
• Low Entry Point: Investors can start an ELSS investment with small amounts, often beginning at ₹500, making it accessible while still allowing flexibility in how much to contribute.

Benefits of Investing in Mutual Funds Under 80C

• ELSS Tax Benefits: ELSS funds let you claim up to ₹1.5 lakh under Section 80C. This reduces your taxable income and helps lower your overall tax amount while still allowing you to invest for future goals.
• Short lock-in period: ELSS comes with a three-year lock-in, which is shorter than most 80C options. This gives quicker access to your money while still offering long-term investing discipline through mandatory holding.
• Flexible Investment Options: You can invest in ELSS through SIP or lump sum, based on what suits your plan. The flexibility helps you spread investments over time or invest in one go when needed.
• Safety and Transparency: Mutual fund investments, including ELSS, adhere to SEBI regulations, ensuring transparency. All mutual fund companies are required to make necessary disclosures, providing investors with a secure and transparent investment avenue.

Risks of Investing in Mutual Funds Under 80C

• Liquidity Risk: ELSS has a mandatory three-year lock-in period. This means investors cannot redeem or move their investment during this time. The lock-in limits access to money and reduces flexibility.
• Market Risk: ELSS invests mainly in equities, so its value moves with market conditions. Factors like economic slowdowns, global events, or changes in investor sentiment can affect the fund and lead to fluctuations.
• Performance Risk: ELSS depends on the fund manager’s investment decisions. If the chosen stocks or strategy do not perform well, the fund’s returns may be affected, which creates performance-related risk.
• High Equity Exposure: Since ELSS maintains a large share of its portfolio in equities, it is exposed to stock market volatility. This can lead to sharp ups and downs in the fund’s value over short periods.

Factors to Consider Before Investing in Mutual Funds Under 80C

• ELSS Fund Asset Allocation: ELSS mutual funds invest at least 80 per cent of their money in equities. The rest may go into debt or money market instruments. The mix depends on the fund’s objective, which can lean toward large-cap or small-cap stocks.
• Lock-in Period: ELSS funds have a mandatory three-year lock-in, the shortest among 80C options like PPF or NSC. This period encourages disciplined investing and allows returns to compound over time.
• SIP Approach: Investors can invest in ELSS through SIPs, which help spread investments across different market conditions. Each SIP instalment has its own three-year lock-in, starting from the date it is invested.
• Risk Levels: ELSS funds invest mainly in equities, so they carry market-related risks. Risk levels vary across schemes, as each fund follows a different style and approach to building its portfolio.

To Wrap It Up…

There are several benefits of an ELSS mutual fund that make it a popular tax-saving choice, but it’s important to understand the risks that come with equity-based investments. Market conditions, fund strategy, and allocation can influence how these schemes perform. Investors should do thorough research before investing and use tools like the Tickertape Mutual Fund Screener, which offers more than fifty pre-built filters to analyse ELSS funds in detail.

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Frequently Asked Questions on Mutual Funds Under 80C