What is an ELSS mutual fund?

An ELSS (Equity Linked Savings Scheme) mutual fund is a type of equity mutual fund which is eligible for tax deductions under Section 80C of the Income Tax Act, 1961 (old regime). These funds primarily invest in equity and equity-related instruments and have a mandatory lock-in period of three years, making them a popular choice for tax savings and potential long-term capital growth.

What is Tata ELSS Fund?

Tata ELSS Fund is an Equity Linked Savings Scheme offered by Tata Mutual Fund. It invests predominantly in equities and equity-related instruments and is designed to help investors save tax while providing opportunities for potential wealth creation over the long term.

Is Tata ELSS Fund eligible for 80C tax benefit?

Yes, investments in Tata ELSS Fund are eligible for tax deductions under Section 80C of the Income Tax Act, 1961 (old regime), up to a limit of Rs 1.5 lakh per financial year.

How does Tata ELSS Fund compare to other tax-saving options?

Tata ELSS Fund, like other ELSS funds, offers the dual benefit of tax savings and equity-linked growth. Compared to traditional options like PPF, NSC, or fixed deposits, ELSS funds generally have the shortest lock-in period (three years) and potential for higher returns due to equity exposure, though they also carry very high risk.

What is the lock-in period of Tata ELSS Fund?

The lock-in period for Tata ELSS Fund is three years from the date of investment. Redeeming the investment before this period is not allowed.

Can I do SIP in Tata ELSS Fund?

Yes, you can invest in Tata ELSS Fund through Systematic Investment Plans (SIP). Each SIP instalment will have its own three-year lock-in period.

What are the benefits of ELSS mutual funds?

The benefits of ELSS mutual funds include: Tax deduction under Section 80C of the Income Tax Act, 1961 (old regime) Shortest lock-in period among 80C options (three years) Potential for returns through equity investments Professional fund management Option to invest via SIP or lump sum

Which is better - Fixed Deposit or ELSS?

ELSS seeks to offer potentially higher returns as compared to fixed deposits due to equity exposure, but also comes with very high risk. Fixed deposits are safer but have a longer lock-in period (five years for tax-saving FDs) and usually lower post-tax returns. The choice depends on your risk appetite and investment goals.

Is Tata ELSS Fund a good option for long-term wealth creation?

Yes, Tata ELSS Fund, by investing primarily in equities, can be a good option for long-term potential wealth creation, especially for investors who can tolerate market fluctuations and remain invested beyond the lock-in period.

How to invest in Tata ELSS Fund and claim tax benefits?

You can invest in Tata ELSS Fund online or through authorized agents, either as a lump sum or via SIP. To claim tax benefits, ensure your investments are made within the financial year and retain the transaction statement as proof for filing under Section 80C.

Tata ELSS Fund Direct Growth Plan

Overview

Fund Size (AUM)

₹4609.00 Cr

as on 14 Sept 2025

CAGR

-4.57%

1 Year

as on 31 Aug 2025

Expense Ratio

0.72 %

as on 31 Aug 2025

Fund Age

29 years 5 months

since 31 Mar 1996

Exit Load

3 years lockin% of NAV

3 years lockin

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Summary

The Tata ELSS Fund is an open-ended equity linked tax saving scheme (ELSS) with a compulsory lock-in period of three years. It has the dual advantage of Tax Benefit under Section 80C of the Income Tax Act and the opportunity to catch the long-term upside potential of the Indian equity market. The fund has a 3-year lock in period that helps the fund management in taking a long term view and lends stability to performance.

Investment Philosophy

The portfolio constructed by the fund manager can be divided into two broad groups: Compounders and Re-rating Opportunities.

Compounders - Businesses that have a long runway for growth and have some sort of market leadership in their product category (in terms of volumes, revenues, costs/profits per unit or in terms of Return on Capital. etc. These companies are also likely to show consistency in generating profits and have a capable management team and prudent capital allocation policies.
Re-Rating Opportunities - These are businesses that are currently underestimated by the market for various reasons. They could be cyclical businesses which the markets believe are in a downcycle, while there are indications of a recovery. They could be companies undergoing a transformation within the business due to a change in management or policy. Investment opportunities could also arise due to a change at the industry level due to consolidation or a change in the demand and supply dynamics. There is the potential for the market to re-rate the valuations of the companies and correct its underestimation.

Portfolio Positioning and Construction

The portfolio is constructed on a bottom-up basis. The portfolio is well diversified across sectors and across market capitalization
- Go Anywhere -A diversified portfolio that shifts across market caps
- Bottom Up – Business fundamentals and valuation to be primary driver of stock selection
- Low Churn – Low churn portfolio, allowing investor to cash in on the compounding effect to build wealth
- Dual Benefit – Long term capital appreciation and benefit of tax saving.

Exit Load

Nil (Compulsory lock-in period for 3 years)

Minimum Investment Amount

SIP

₹ 1,000

Lumpsum

₹ 500

Key Measures**	Fund	Benchmark
Standard Deviation	13.4	14.15
Sharp Ratio	0.61	0.65
Portfolio Beta	0.85	NA
R Squared	0.85	NA
Treynor	0.82	NA
Jenson	0.04	NA

Portfolio Macauley Duration
Modified Duration
Average Maturity
YTM*	NA

				Current value of ₹10,000 invested
	Annualized (%)	Nifty 500 TRIBenchmark(%)	Nifty 50 TRIAdditional Benchmark(%)	Scheme	Nifty 500 TRIBenchmark(%)	Nifty 50 TRIAdditional Benchmark(%)
Since Inception	15.77%	13.57%	12.35%	₹49,205	₹39,951	₹35,493
Last 5 Years	20.62%	20.36%	17.92%	₹25,522	₹25,248	₹22,786
Last 3 Years	15.23%	14.67%	12.49%	₹15,300	₹15,080	₹14,236
Last 1 Year	-4.57%	-4.42%	-2.01%	₹9,544	₹9,559	₹9,799

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