ELSS is Equity Linked Savings Scheme and is tax-saving mutual fund that invests in equity and equity-related products. These schemes directly involve in investing in stock markets and carry a inherent amount of risk and can give handsome returns as well.
Top 5 ELSS funds
The above is the screenshot from the http://valueresearchonline.com/ for analysing all type of mutual funds. I took up a look on the currently available ELSS funds in the market and did some analysis to get this list. This is based on their past performance and this can be well be a probable indication of their future but not their future.
To quote the top 5 ELSS funds for this FY 2011-2012,
1. Fidelity Tax Advantage
2. Canara Robeco Equity Tax Saver
3. Tauras Tax Shield
4. HDFC Tax Saver
5. Sahara Tax Gain
In the case of ELSS, you get up to 30% returns (because of saving tax) before hand and even if you get 2-3% less after 3 years, it would have beaten any well managed fund by leaps and bounds. So, its always better to put your remaining amount after your PF into ELSS if you want better returns.
Be aware that ELSS doesn't give any assured returns. If anyone says that you will get 16% assured returns every year, they are fooling you around, and its better you walk two steps ahead them, so them you don't hear them. There won't be any assured returns if you see any market, stock, unit-linked kind of words in front of you. Have fun.