Aditya Birla Sun Life AMC Limited

Tax Saving Solutions: Invest in Top Tax Saving Mutual Funds - Aditya Birla Sun Life Mutual Fund

Tax Saving Solution

Debt Mutual Funds

Tax Saving Mutual Fund or Equity Linked Saving Scheme (ELSS) Fund is an ideal investment option for individuals looking for tax-savings on their investments without sacrificing the opportunity for long-term capital gains. If you are seeking tax relief, you can invest up to ₹1,50,000 in an ELSS mutual fund and receive tax savings of up to ₹46,800 as per Section 80C of the Indian Income Tax Act, 1961*.

*- this is considering income in the 30% tax bracket and 4% cess – for individuals with income in excess of INR 50 lacs and up to INR 1cr – the benefit owing to impact of surcharge would increase to INR 51,480 and for those with income in excess of INR 1cr – the benefit would increase to INR 53,820.


Why our Tax Saving Solution makes sense for you?

  • • Offers tax savings of up to ₹46,800*
  • • Long term growth potential
  • • Provides the dual advantage of long-term gains and tax savings
  • • Flexibility to invest through a lump sum or monthly instalments

Who should invest in Tax Saving Solution?

  • • High-income individuals seeking tax relief
  • • Investors looking for better returns
  • • Investors planning to invest for long-term goals (retirement, child’s education, higher studies)
  • • Individuals with an investment period of at least 3 years or longer

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Fund Categories

    ELSS : These are tax¬-saving mutual funds that you can use to save income tax of up to Rs 1.5 lakh under Section 80C.

  • Which mutual fund scheme is included in Tax saving solution?

    Tax saving solution includes Equity Linked Savings Scheme (ELSS). ELSS is an equity oriented mutual fund that comes with a lock-in of 3 years and provides tax saving benefits under section 80C of the Indian Income-tax Act, 1961.

  • How much tax can I save by investing in ELSS?

    Investing in ELSS can reduce your taxable income by up to INR 1,50,000. This can provide you with a direct tax benefit of up to INR 46,800* per year u/s 80C of the Income-tax Act, 1961.

  • Is tax saving the only goal of ELSS?

    While tax saving is an important goal of this fund, the USP of ELSS is that it actually provides a dual benefit of tax saving along with capital growth of your investment.

  • Is ELSS the right investment for me?

    ELSS is suitable for you if you are looking out for a tax saving investment avenue which can also provide you potential capital appreciation on your investment over the long term.

  • How can ELSS be beneficial when compared to other tax saving instruments?

    ELSS can be beneficial in the following ways –
    • Lower lock-in period of 3 years vis-à-vis 5 years in most other tax saving instruments
    • Higher potential for returns – active, market linked returns
    • Possibility of earning dividends; if dividend option is selected

  • Can I redeem my investment in ELSS after a year?

    No. ELSS is subject to a lock-in of 3 years, thus is it cannot be redeemed after a year.

  • Do I need to mandatorily redeem my investment after the completion of the 3-year lock-in?

    No. The 3-year lock-in period is the minimum time frame for which you need to stay invested. You can continue to stay invested in the ELSS even after completion of the lock-in period. In fact, as it is an equity-oriented fund, it has the potential to earn better returns over a longer time period.

  • How is ELSS taxed on redemption?

    The taxation of these funds is the same as the taxation of equity funds. As they can only be redeemed after 3 years, only long-term capital gains (LTCG) tax shall apply. LTCG tax is only applicable if the gains exceed INR 1 lac – being taxed at 10%.

Check out the benefits of ELSS by entering an investment amount below

Please enter minimum investment amount of Rs. 500
Investment Option Public Provident Fund (PPF) National Savings Certificate VIII Issue (NSC) Bank Tax Savings Fixed Deposits Equity Linked Savings Scheme (ELSS)
Value of investment after 3 years
Lock-in Period (years) 15 10 5 3
Rate of Return 8.7% p.a. 8.5% p.a./8.8% p.a. 7.5% p.a. 18.28% p.a.^
Tax Status on Returns Tax - Free Taxable Taxable Tax - Free
Maximum Investment Rs. 1,50,000 Rs. 1,50,000 Rs. 1,50,000 Rs. 1,50,000
Potential for Dividends No No No Yes

Category Average from Morning Star. Source: Moneycontrol BSE India.
Note: Unlike PPF, NSC & Bank FD`s investments in Mutual Funds are subject to market risks #.

Note:The comparison of ELSS Vs other traditional savings instruments has been given for the purpose of the general information only. Investment in ELSS carry higher risk, does not guarantee returns and any investment decision needs to be taken only after consulting the Tax Consultant or Financial Advisor. Birla Sun Life Mutual Fund / Birla Sun Life Asset Management Company Limited will not accept any liability/ responsibility/loss incurred on any investment decision taken on the basis of this information.

#Past performance may or may not be sustained in future.Partial PFF withdrawals are allowed from 6th Financial Year. Indiapost.
For PPF:Interest rate of 8.75% p.a. w.e.f 01.04.2015. Partial withdrawals are allowed from the 6th financial year, however the full amount can be withdrawn after 15 years. NSC: NSC VIII Issue (5 years) _ Interest rate of 8.6% per annum w.e.f. 01.04.2015 Bank FD's: 8.50% per annum, from 5 years up to 10 years from 07.09.2015.


Funds Under ELSS Solutions

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Here’s what we found for you You can compare up to 3 funds.

Funds are bucketed on various parameters.
*Annualized returns are displayed for 1 year and above.

Summary :

ABSL Tax Relief’96 is an Equity Linked Savings Scheme (ELSS). ELSS funds qualify for tax exemptions under Sec 80C of the IT Act where investments of up to Rs.1,50,000 can be claimed as tax deduction in each financial year. Furthermore, capital gains of less than Rs. 1 lakh in a financial year earned through ELSS funds are tax-free. Besides saving tax, ELSS funds can also help earn returns that can beat inflation. While traditional saving instruments might offer fixed returns that may be in line with the pace of inflation, however over a period, the real returns are quite low. The real return is the return generated by the investment option over the inflation rate. Since ELSS funds are equity funds, these funds have the potential to generate higher gains as compared to other investment options and beat rising inflation. ABSL Tax Relief ’96 is an industry veteran which has a credible track record of over 20 years generating higher risk-adjusted returns for investors. Since its inception, this fund has given a CAGR of 23.22%. ABSL Tax Relief ’96 being a tax saving mutual fund with a lock-in of 3 years, offers twin benefits of capital appreciation with additional benefits of taxation u/s 80C.


ABSL Tax Relief ’96, an ELSS fund, seek to follow a combination of the top-down approach and bottom-up approach in the stock selection process. The top-down approach will focus on an analysis of macroeconomic factors, economic changes & trends, key policy changes, infrastructure spending, etc. The bottom-up approach would seek to identify companies with high profitability and scalability supported by sustainable competitive advantage. The Benchmark of this tax saving mutual fund is S&P BSE 200 TRI.

Aditya Birla Sun Life Tax Relief 96

(An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit)

This product is suitable for investors who are seeking*

  • Long term capital growth
  • Investments in equity and equity related securities, with tax benefit under section 80C, subject to eligibility


*We recommend investors to consult their financial advisers in case of doubt about whether the product is suitable for them.