Aditya Birla Sun Life Mutual Fund

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

Tax Saving Solution

Debt Mutual Funds

Our Tax Saving Solution help to reduce your tax burden and at the same time, aim to grow your money through equity investments.

Tax saving solution is important, especially when investors can save up to Rs. 53,820 in taxes! Section 80C of the Income Tax Act, 1961 provides options to save tax by reducing the taxable income by up to Rs. 1.50 Lakh. But, wealth creation is also important. Isn't it? That's why these solutions are ideal for investors who would like to create wealth along with tax saving.

Tax saving of Rs. 53,820 is calculated assuming qualifying amount of deduction is Rs. 1.50 lakh & investor falls in the top income tax slab of 30% & includes applicable cess. Investors are advised to consult their tax advisor in view of individual nature of tax benefits. Further, Tax deduction(s) available u/s 80C of the Income Tax Act, 1961 is subject to conditions specified therein. Investors are requested to note that fiscal laws may change from time to time and there can be no guarantee that the current tax position may continue in the future.


Investment Objective

Investment objective is to save tax while growing your money through Equity Invesments

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

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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.

  • What is ELSS?

    ELSS stands for Equity Linked Savings Scheme. These are tax¬-saving mutual funds that you can use to save income tax of up to Rs 1.5 lakh under Section 80C. ELSS funds have a lock¬-in period of 3 years and invest a majority of their portfolio in the stock market.

  • Why invest in ELSS?

    ELSS funds are one of the best avenues to save tax under Section 80C. This is because along with the tax deduction, the investor also gets the potential upside of investing in the equity markets. Also, no tax is levied on the long-term capital gains from these funds. Moreover, compared to other tax saving options, ELSS has the shortest lock-in period of three years.

  • What are the tax benefits of ELSS funds?

    Investments of up to Rs 1.5 lakh in ELSS funds earn a tax rebate under Section 80C every year. The returns generated on the investments are also tax¬-free in the hands of the investor after completion of the 3¬ year lock¬-in period. In case of SIP investments, redemptions can be done on a first¬-in¬-first¬-out basis since each individual SIP has a lock¬-in of 3 years.

  • What is the ELSS investment tenure?

    ELSS funds have a lock¬-in of 3 years. But you can stay invested in them, with or without further contributions, for as long as you want. You can also stop an ELSS SIP at any point, but the invested amount can be withdrawn only after 3 years.

  • Who can invest in ELSS funds?

    Individuals as well as HUFs can invest in tax¬-saving mutual funds. At present, most mutual fund companies do not accept investments from NRIs who are US and Canadian citizens. NRIs living in other countries can invest in ELSS funds.

  • What is the ELSS investment limit?

    An ELSS investment can be started with a minimum amount of Rs 500. There is no upper limit on how much you can invest in ELSS funds, but tax-saving can be availed on only a maximum of Rs 1.5 lakh a year.

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, all capital gains earned through ELSS funds are tax-free i.e. there is no tax imposed on the maturity amount or the earnings accrued through ELSS investments. This is why ELSS is a much-preferred savings option. ELSS funds also help earn returns that are able to beat inflation. While bonds and fixed deposits might offer returns that may be in line with the pace of inflation over a period of time, in reality, the real returns are quite low. Since ELSS funds are equity-based and returns are tax-free, they provide higher gains as compared to other investment options and these are in line with the increase in inflation. ABSL Tax Relief ’96 is an industry veteran which has a credible track record of generating higher risk-adjusted returns for investors. 20 years is a long period; especially when you are part of the stock market journey. If you were a part of this 20 year ride with ABSL Tax Relief ’96, your experience would have not only been fulfilling but also hugely rewarding with a CAGR of 25.43% since inception. The fund with a lock-in of 3 years, offers twin benefits of capital appreciation with additional benefits of taxation u/s 80C.


A combination of the top down approach and bottom up approach will be followed 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 Fund Benchmark 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.