Best mutual funds: These ELSS schemes gave over 20 per cent annualised returns in past 3 years. Should you invest?

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mutual fund scheme, one of the key motivations to invest is the annual return it can deliver over a period of time. Although one-year returns do not reveal much about a scheme's potential, the returns over a period of time can help investors determine its investing potential. For instance, a scheme that has given annualised returns over a period of time, say three or five years, are seen as more investible by retail investors.

However, investment experts often suggest that investors should consider factors other than past returns as well. Here, we shortlist the top performing ELSS funds in the past three years. ALSO READ: ₹1 lakh investment in these mutual funds at launch would have grown 20 times Equity Linked Savings Scheme, or ELSS, are tax-saving mutual funds that offer tax saving option under Section 80C while giving exposure to equity at the same time.

These schemes have a 3-year lock-in period, and are a popular choice for long-term investors because of their potential for high returns along with tax savings. These schemes invest a minimum of 80 per cent of their assets in accordance with Equity Linked Saving Scheme (2005), notified by the Finance ministry. As on March 31, 2024, there are a total of 42 ELSS schemes in India with net AUM of ₹2.13 lakh crore, reveals the AMFI data.

These schemes saw an inflow to the tune of ₹3,876 crore in the month of March alone. ALSO READ: Mutual Funds: How to choose the right debt funds? Here are 7 key factors to consider We zero in on a dozen Equity Linked Savings Schemes (ELSS) that delivered over 20 per cent annualised return in the past three years. The highest returns of 31 per cent were delivered by Quant ELSS Tax Saver Fund followed by 28 per cent CAGR returns given by