Axis vs ICICI Tax Saving ELSS Funds Overview Comparison 2025
It is also a popular tax planning technique to invest in tax saving mutual funds, in particular, Equity Linked Savings Schemes (ELSS) in 2025. Out of the many options, Axis Long Term Equity Fund and ICICI Prudential Long Term Equity Fund still remain popular among their performance and tax efficiency. The financial year is ending soon and a comparison of these ELSS funds-Axis vs ICICI- is important to make an informed choice of investment that will give maximum returns and tax savings.
What are ELSS Funds and Reason why one should consider them in saving taxes?
ELSS are mutual funds diversified and their main aim is to generate wealth as well as tax rebates in Section 80C. Investors are allowed by investing in ELSS a deduction of up to [?]1.5 lakh per annum to their taxable income. ELSS has a three-year lock- in period, which is the lowest in the available Section 80C investment options.
ELSS funds such as Axis and ICICI are investment-led and are primarily invested in equities with a possibility of greater returns in the long run, and tax gains. They can fit both new and experienced investors to a balance between tax planning and capital gain, particularly in contrast with tax-saving conventional instruments such as Public Provident Fund (PPF) or Fixed Deposits (FDs).
Key Highlights
- Deduction on Section 80C of up to [?]1.5 lakh.
- Three year lock-in period
- Market-linked returns performing better in comparison to traditional ones.
- Lump sum/Systematic Investment Plan (SIP) option.
- No fixed returns - associated with performance of stock market.
What are ELSS Funds and Are ELSS funds risky?
ELSS funds are a bet in equity markets that are risky, but which may over the long term yield returns beating inflation.
Comparison of Axis and ICICI Tax Saving ELSS Funds in 2025
Axis Long Term Equity Fund and ICICI Prudential Long Term Equity Fund are both the most popular and the largest ELSS available in India 2025 is associated with new developments in mutual fund regulations, taxation (with the accent on long-term capital gains) as well as the tendencies in the industry. This comparative analysis of their new performance, portfolio and suitability would enable the Indian investors to maximize their section 80C savings.
Key Features
- Axis Long Term Equity has a reputation of a large cap and consistent alpha.
- ICICI Prudential Long term Equity balances between mid and large cap.
- They both offer SIP and lump-sum.
- Request other styles of investments and risk profiles.
- Annual review is needed on performance data, expense ratio and AUM (Asset Under Management).
Did you know?
As of March 2025, ELSS mutual funds have a strong investor confidence with assets under management to the tune of more than [?]2 lakh crore, irrespective of the volatility in the market.
Why Axis Long Term Equity Fund done Lately?
Axis long term equity fund of axis asset management has a long history of consistent outperformance and comparatively reduced volatility relative to other equity funds having the tax advantages in India. Its strategy is biased towards good large-cap firms, and it makes more sense to invest in steady growth than to play with the market cycles.
Recent Performance (March 2025):
- 1-year returns: 18.7 percent
- 3-year CAGR: 15.2 percent
- 5-year CAGR: 13.9 percent
- Expenses Ratio: 0.75 percent (Direct Plan)
- Assets Under management: [?]40,700 crore.
- Best performing sectors in the portfolio: Banking, IT, FMCG, Chemicals.
Pros
- Constant operating with reduced drawdown.
- Concentrates on premium stocks.
- Appropriate to the conservative and new ELSS investors.
- Diversified in essentially robust areas.
Cons
- May does not perform well when the market is on a sharp rallying trend.
- The big cap bias might constrain the high to riskier peers.
- Intermittent short-term poor performance in an increasing market.
People Also Ask: Is Axis Long Term Equity better SIP or lump sum?
Both options are available. SIP tends to be focused on rupee cost averaging, which will minimize the effects of short-term volatility.
How Good is ICICI Prudential Long Term Equity Fund in Tax Saving in 2025?
ICICI Prudential Long Term Equity Fund uses the differentiated approach as it balances between big and middle-cap stocks. It is actively managed and is focused on tapping opportunities in the market segments and markets- making it more appropriate to investors with a higher growth orientation that may want higher returns which are higher and maybe more volatile.
Performance Snapshot (March 2025):
- 1-year returns: 21.4 percent
- 3-year CAGR: 17.1 percent
- 5-year CAGR: 15.8 percent
- Expense Ratio: 0.77 percent (Direct Plan)
- Assets Under Management: [?]10, 900 crore.
- Best performing sectors in the portfolio: Financials, Manufacturing, Pharma, Technology.
Pros
- Dynamic sector allocation
- Higher returns potential through exposure to mid-cap.
- Proactively operated to suit dynamic market conditions.
- Consistency in market cycle.
Cons
- Increased volatility on account of mid-cap component.
- Not suitable to very risk-averse investors.
- Smaller history of large AUM than Axis.
Expert View:
Top mutual fund managers have reported that active funds holding a mix of mid and large cap stocks such as the ICICI Prudential have performed in good growth years, yet investors must be ready to take interim declines.
What Fund Fits in the Variety of Investor Profiles.
Axis and ICICI ELSS funds have respective risk and returns profiles. The correct decision to make relies on your financial objectives, risk tolerance and investment time horizon.
Axis Long Term Equity Fund
- Perfect investment cost-effective when buying an initial mutual funds.
- Favor stable returns to highest growth.
- Less tolerance to size market fluctuations.
- Stability of large-caps is important.
ICICI prudential Long term equity fund.
- Appropriate to younger or more aggressive devotees.
- Invest in wealth creation over the long term.
- Ready to accept volatility as a price to greater growth.
- Searching dynamic funds management.
People Also Ask: Is it more appropriate to remain invested after three years of lock-in?
Yes, the longer-term (longer than three years) holding of either fund may assist in weathering volatility, and perhaps increase long-term returns.
Risk and Returns Comparisons between Axis and ICICI ELSS
appraisal of ELSS funds does not just stop at recent performance, risk, suitability of SIP, change in fund manager and past drawdowns are also significant. We will make comparisons on the two in important measures.
| Criteria | Axis Long Term Equity | ICICI Prudential Long Term Equity |
|---|---|---|
| 3-year CAGR (2025) | 15.2 percent | 17.1 percent |
| Standard Deviation | 11.4 percent | 13.6 percent |
| Downside Capture Ratio | 89 percent | 93 percent |
| Upside Capture Ratio | 88 percent | 94 percent |
| Expense Ratio (Direct) | 0.75 percent | 0.77 percent |
| Minimum SIP Amount | INR 500 | INR 500 |
| Portfolio Allocation | 70 percent large cap | 58 percent large, 37 percent mid cap |
| Lock-in Period | 3 years | 3 years |
Key Takeaways
- Axis is more stable and less fluctuating.
- ICICI has greater potential of returns (at a slightly higher risk).
- Both contain available minimum investment and comparable lock-in.
- Investors should make their investment decision in line with individual risk tolerance.
Tax implications of Axis and ICICI ELSS Funds in 2025
ELSS funds should be considered an investment to provide the investor with Section 80C tax deduction, though, the returns are subject to capital gains tax according to the current guidelines.
- The amount invested up to [?]1.5 lakh would be deductible in Section 80C every year.
- Capital gains (LTCG), obtained above [?]1 lakh in any financial year would be taxed at 10 percent (not indexed).
- In case of dividend, which may or may not be present, it is taxable according to the slab of the investor.
- None of the early withdrawals, three-year lock-in is obligatory.
- Each installment gives SIPs an individual lock-in.
Did you know?
In the year 2025, ELSS is more favorable among many Indian investors compared to ULIPs or endowment plans because of its superior portfolio performance liquidity and transparency.
People Also Ask: Is it possible to move Axis to ICICI ELSS after three years?
Yes, after lock-in, you can redeem and re-invest in another ELSS should you want to. Nevertheless, the new investment will be a new 3-year lock-in.
Before investing in any of the two funds, the following are some of the factors that must be considered.
It is not always about past returns when deciding on Axis or ICICI ELSS. Consider:
- Trends in expenses ratio.
- Managerial experience and consistency of style amongst funds.
- Turnover; the greater the turnover, the greater the risk.
- The historical declines and recovery rate.
- Reputation and customer service of the fund house.
- Online investment and monitoring ease.
Which Fund would be better to recommend by 2025?
Although both Axis and ICICI have been ranked in the top quartile of Indian ELSS funds, your ideal fit will depend on your personal objectives since the future of markets in 2025 will be characterized by diversified and dynamic funds due to the sector rotation and unpredictability. Axis Long Term Equity is still of deep interest to most conservative and first time investor due to its stability and richness. ICICI Prudential Long Term Equity leads among the others who can tolerate greater volatility in the pursuit of greater alpha.
Expert Observation:
SIPs should be spread throughout the year as a way of averaging market risks as opposed to lump sum investments in years when the market has unpredictable prospects.
Quick Recap TLDR
- Axis and ICICI are the best in class Indian mutual funds that are tax saving funds among the Indian investors of 2025.
- Axis Long Term Equity Fund: low risk, large cap focus, good performance.
- ICICI prudential long term equity fund: dynamic large and mid-cap blend, greater growth potential, marginally greater risk.
- 3 years lock-in; both qualify under up to [?]1.5 lakh taxes deduction under Section 80C.
- Selection will be based on your risk-taking, expected returns and stability in a team.
People Also Ask FAQ
Q1: Which is superior: Axis or ICICI ELSS in 2025 in SIP?
A1: In case you desire more stability and uniformity, Axis is better. To grow higher and better in the long term and can withstand some volatility, use ICICI.
Q2: Which fund has had better returns in the past, Axis long term equity or ICICI prudential long term equity?
A2: ICICI ELSS has performed better on three and five years on the basis of returns, as of 2025, but with higher volatility than Axis.
Q3: Are both funds open to online investment and SIP?
A3: Yes, Axis or ICICI funds are both investable online in either AMC or in an AMC which is registered as a mutual fund.
Q4: ELSS tax free returns after 3 years?
A4: The lock-in notwithstanding, returns over [?]1 lakh per year are taxed at 10 percent LTCG rate.
Q5: Can ELSS be safely invested at the moment when the market is volatile in 2025?
A5:The ELSS funds are most appropriate to long-term investors. Initializing the SIPs assists in balancing the periods of volatility. Personally, I do not feel at ease with equity market fluctuations, so hybrid or balanced tax saving alternatives can be considered.
Sources
- Sebi Mutual Fund March 2025 Statistics.
- Axis Mutual Fund Web Site.
- ICICI Prudential Mutual Fund Products.
- AMFI India ELSS Returns Data.
