Mirae Asset ELSS Tax Saver Fund: Strong 5-year CAGR of 18.70% — Should you bet on it?
The Mirae Asset ELSS Tax Saver Fund is a popular investment option among investors aspiring to save tax and create wealth on a long term basis. This Equity Linked Savings Scheme (ELSS) comes with a three-year lock-in period and Section 80C benefits of up to ₹1.5 lakh annually.
Can ELSS funds help you save taxes and build long-term discipline?
Vaibhav Shah, Head – Products, Business Strategy & International Business, Mirae Asset Investment Managers (India), says, “For individuals filing taxes under the old regime, investing in ELSS (Equity Linked Savings Scheme) funds can offer tax savings of up to ₹46,800 per year on investments up to ₹1.5 lakh, depending on their tax slab.”
He further added, “Beyond tax benefits, ELSS funds also encourage disciplined investing due to their mandatory 3-year lock-in period, which helps investors avoid impulsive decisions during market fluctuations. Thus, for long-term investments, ELSS makes much more sense.”
Consistent long-term performance
As of July 2025, the Mirae Asset ELSS Tax Saver Fund (Direct-Growth) has delivered strong and consistent returns timeframes, making it a reliable performer in the ELSS category. It has showcased good performance over the years and looks primed to continue on the same trajectory.
| Period | Return (% CAGR) |
|---|---|
| 1 year | 21.06% |
| 3 years | 17.48% |
| 5 years | 18.72% |
| Since inception | 17.83% |
Note: The returns discussed above are illustrative in nature. For complete details of the fund and its performance refer to the website of Mirae Asset.
It is important to note that the 5-year CAGR of 18.72% stands out, outperforming many peer ELSS fund schemes. Furthermore, despite market fluctuations due to the ongoing geo-political issues due to the tariffs and wars i.e., Russia-Ukraine war and other disputes the fund has continued to deliver resilient growth potential.
Tax benefits and lock-in period
Investments done in this fund qualify for tax deductions under Section 80C of the Income Tax Act. This deduction is permitted up to ₹1.5 lakh annually. It also has the shortest lock in period among tax saving instruments, just 3 years.
Further, this lock-in is implemented on such funds to allow them to compound wealth, as it is common knowledge that wealth in equity markets is only made on compounding. This makes this ELSS scheme tax efficient along with being relatively liquid in comparison with other tax saving schemes such as NSC and PPF.
Diversified equity portfolio
The fund focuses on maintaining a well balanced portfolio spread across large-cap, mid-cap and small-cap stocks. The top sectoral allocations include financials, consumer goods, technology and chemicals. This diversification permits in reducing risk while capturing opportunities across different market capitalisations and sectors.
Low expense ratio
This is another extremely crucial metric associated with this fund, it is the expense ratio. For direct plans, the expense ratio is just 0.56%, one of the lowest in the entire ELSS category. This simply means more of your invested money works towards creation of wealth and generating returns instead of being eroded by fund management fees and charges. Hence, as a general rule you should invest in only those funds that have low expense ratios.
Ideal for disciplined, long-term investors
Given the lock-in period and equity exposure, this fund is appropriate for investors who have a long term vision. The holding period preferably should be 5 years or more. If you stay invested beyond the 3-year lock-in period then the compounding benefits can significantly boost your overall corpus.
Hence, the Mirae Asset ELSS Tax Saver Fund provides a mix of tax saving, disciplined investing, and strong long term returns. Still, as it is an equity oriented investment product, investors should be completely aware of and prepared for short term volatility. That is why you should always align such investments with your financial goals, long term targets and risk taking appetite.
Disclaimer: Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully before investing.
