The rule behind "best"
"Best" is not one thing, so this post fixes a rule and applies it the same way in every category of this series. Of the 49 ELSS funds with a 3-year record, 19 are open to new money, hold at least ₹1,000 crore (average AUM, July–September 2026) and have a 5-year record. They are ranked by 3-year compounded annual return, Direct plan, Growth option, from NAVs to 27 October 2026. On that rule the leader is Motilal Oswal ELSS Tax Saver Fund at 19.63% a year, against a category median of 10.14%. The same fund tops the list with no filter applied.
An ELSS fund keeps at least 80% in equities and locks each instalment for three years. Under the old tax regime, up to ₹1.5 lakh a year invested in ELSS can be deducted under section 80C; the new regime allows no such deduction. The lock-in is a real cost of access, so a fund's record over rolling periods matters more here than in an open category.
The top five
| Fund | 1 year | 3 years | 5 years | 10 years | Expense ratio | AUM (₹ crore) |
|---|---|---|---|---|---|---|
| Motilal Oswal ELSS Tax Saver Fund | 0.72% | 19.63% | 15.43% | 16.18% | 0.96% | 4,948 |
| Quant ELSS Tax Saver Fund | 3.45% | 14.54% | 13.26% | 19.13% | 1.22% | 13,377 |
| SBI ELSS Tax Saver Fund | −9.77% | 12.91% | 12.46% | 13.57% | 1.23% | 31,724 |
| DSP ELSS Tax Saver Fund | −7.66% | 12.77% | 10.21% | 14.07% | 0.91% | 16,505 |
| HDFC ELSS - Tax Saver Fund | −10.63% | 12.43% | 12.27% | 12.57% | 1.20% | 15,818 |
| Category median | −6.31% | 10.14% | 9.79% | – | – | – |
Returns of a year or more are compounded annual rates. Motilal Oswal ELSS Tax Saver Fund leads the median by 9.49 points a year over three years, and Quant ELSS Tax Saver Fund follows at 14.54%.
Risk: what the lead cost
| Fund | Volatility (3 yr) | Worst fall (3 yr) | Sharpe ratio | Alpha vs Nifty 500 TRI |
|---|---|---|---|---|
| Motilal Oswal ELSS Tax Saver Fund | 19.5% | −27.7% | 0.67 | 10.0% |
| Quant ELSS Tax Saver Fund | 16.8% | −25.8% | 0.48 | 4.2% |
| SBI ELSS Tax Saver Fund | 13.2% | −15.8% | 0.49 | 2.4% |
Volatility is the annualised standard deviation of daily returns; the worst fall is the deepest peak-to-trough drop in the last three years. The Sharpe ratio uses a 6.5% risk-free rate. Alpha is the fund's return above what its beta to the benchmark predicts.
What a monthly SIP earned
| Fund | 3-year SIP return (a year) | 5-year SIP return (a year) |
|---|---|---|
| Motilal Oswal ELSS Tax Saver Fund | 7.51% | 16.45% |
| Quant ELSS Tax Saver Fund | 5.31% | 12.14% |
| SBI ELSS Tax Saver Fund | −1.05% | 10.64% |
| Category median | 0.84% | 8.26% |
SIP returns are annualised (XIRR) for ₹10,000 a month. They differ from lump-sum returns because each instalment buys at a different price.
Same rule, different crowns
3 different funds take the five measures below, which is the point: the answer depends on what you ask.
| Measure | Fund | Value |
|---|---|---|
| Best 1-year return | Quant ELSS Tax Saver Fund | 3.45% |
| Best 5-year return | Motilal Oswal ELSS Tax Saver Fund | 15.43% |
| Lowest expense ratio | Parag Parikh ELSS Tax Saver Fund | 0.65% |
| Lowest volatility | Parag Parikh ELSS Tax Saver Fund | 11.3% |
| Highest Sharpe ratio | Motilal Oswal ELSS Tax Saver Fund | 0.67 |
Closed-ended tax-saving series also rank in the unfiltered top ten, and this ranking leaves them out because they take no new money. Among funds you can actually buy, the leader is about five points a year ahead of second place, and it had the deepest 3-year fall of the top three.
More in this series
Best large cap fund · Best mid cap fund · Best small cap fund · Best flexi cap fund · Best aggressive hybrid fund · Best multi asset fund · Best large and mid cap fund · Best short duration fund · Best gilt fund
What this ranking cannot tell you
It looks backward over a single window. It ignores the fund house, the manager's tenure, the portfolio and its overlap with what you already own. Past returns do not predict future ones, and a fund's rank can change with the next month's NAV. For any fund here, open its page to see the full record, and use the compare tool to set two side by side. This is a data read-out, not advice to buy or sell.
Frequently asked questions
Which is the best ELSS fund in India in 2026?
On this rule (open-ended, at least ₹1,000 crore AUM, a 5-year record, ranked by 3-year return, Direct plan, Growth option), Motilal Oswal ELSS Tax Saver Fund, at 19.63% a year to 27 October 2026, against a category median of 10.14%. A different rule can give a different answer.
Does the best ELSS fund by 3-year return also lead over 1 and 5 years?
Not entirely. Among the eligible funds, Quant ELSS Tax Saver Fund leads over one year at 3.45% and Motilal Oswal ELSS Tax Saver Fund leads over five years at 15.43%; Motilal Oswal ELSS Tax Saver Fund returned 0.72% and 15.43%.
Which ELSS fund has the lowest expense ratio?
Parag Parikh ELSS Tax Saver Fund, at 0.65% for the Direct plan among the eligible funds. Motilal Oswal ELSS Tax Saver Fund charges 0.96%.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.
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