These twelve tax-saving equity mutual funds gave alpha returns in three years. Do you own any of these?

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₹1.50 lakh . According to money experts, investing in ELSS funds in a lump sum can be a mistake as these are equity investments, and the market conditions at the time of your lump sum investment will have a significant impact on your returns.

According to a weekly report by SMC Global Securities Ltd., twelve mutual fund schemes gave alpha returns in three years. Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here 1)SBI Long Term Equity Fund - Growth- 27.80% 2)Motilal Oswal Long Term Equity Fund - Reg - Growth- 26.40% 3)Bank of India Tax Advantage Fund - Eco - Growth- 26.10% 4)HDFC Taxsaver - Growth- 28.20% 5)Bandhan Tax Advantage (ELSS) Fund - Reg - Growth -30.60% 6)Franklin India Taxshield - Growth- 28.70% 7)Parag Parikh Tax Saver Fund - Reg - Growth- 23% 8)DSP Tax Saver Fund - Growth- 26.40% 9)Nippon India Tax Saver (ELSS) Fund - Reg - Growth- 27.90% 10)Kotak Tax Saver Fund - Reg - Growth- 24.70% 11)Mahindra Manulife ELSS Fund - Reg - Growth- 26.40% 12)Mirae Asset Tax Saver Fund - Reg - Growth- 23.80% Alpha return is a term used in investing to describe when an investment strategy beats the market.

So as per the report, if we see the benchmark indices performance for three years- Nifty 50- 20.50%, and S&P BSE Sensex- 20.10%. ELSS Funds are basically equity funds and are thus risky for a short duration.

“They have the potential to give you better returns in the long run. Though the ELSS schemes have a lock-in period of only three years, there is no guarantee of positive returns within the lock-in," said tax and investment expert Balwant Jain.