360 ONE ELSS Tax Saver Nifty 50 Index Fund: Wealth creation with tax benefits

As this financial year draws to a close, it will be useful to remind taxpayers in the old tax regime, to complete the tax savings (80C) before the deadline of 31^st March 2026. Though Public Provident Fund or Voluntary Provident Fund have the traditional tax saving investment options under Section 80C, Equity Linked Savings Scheme are also equally very popular with investors who have chosen the old regime of taxation, since they have higher wealth creation potential over long investment tenures compared to traditional tax saving investment options like PPF. In this article, we will review the 360 ONE ELSS Tax Saver Nifty 50 Index Fund. The scheme is an Index fund with a tax benefit under section 80C of the Income Tax Act 1961, and a lock in period of 3 years from the date of investment of each unit.

Why is investment in ELSS an attractive proposition?

• Interest rates of 80C Government Small Savings Schemes like PPF rates have been steadily declining over the long term.
  
  

  

  Source: Advisorkhoj Research



• Historically, equity investment has given better returns compared to other asset classes in the long term.


• The 3-year lock in period in ELSS helps fund managers invest in high conviction stocks with less redemption pressures.


• The lock in period of 3 years is the lowest amongst all the tax saving investments.


• ELSS is one of the most tax efficient investments u/s 80C. Capital gains of up to Rs 1.25 lakhs from the fund is exempted from tax and taxed at 12.5% thereafter.

Why should you invest in an Index fund versus active ELSS funds?

• Unlike actively managed funds, index funds have no unsystematic risks since index funds are not overweight / underweight any stock / sector relative to the benchmark index; index funds simply track the benchmark index.


• The total expense ratios (TERs) of index funds are significantly lower than actively managed funds. Unless active funds are able to generate sufficiently high alphas, the lower cost works to the advantage of index funds.


• There is no fund manager bias in index funds, since no judgement is involved in stock selection. Change in fund managers will not have any impact on index fund performance.


• Unlike ETFs, you do not need to have demat accounts to invest in index funds. You can invest in index funds like any other mutual fund scheme. Just like active ELSS funds, you can accumulate units of index funds through your monthly savings using Systematic Investment Plan (SIP).

360 ONE ELSS Tax Saver Nifty 50 Index Fund.

The investment objective of scheme is to invest in stocks comprising the Nifty 50 Index in the same proportion as in the Index to achieve returns equivalent to the Total Returns Index of Nifty 50 Index (subject to tracking error), while offering deduction on such investment made in the scheme under section 80C of the Income tax Act, 1961. The fund is managed by Mr. Ashish Ongari.

360 ONE ELSS Tax Saver Nifty 50 Index Fund versus PPF

The chart below shows the growth of Rs 1 lakh investment in 360 ONE ELSS Tax Saver Nifty 50 Index Fund versus PPF since the inception of the scheme. You can see that the fund was able to outperform PPF by a comfortable margin.

Limited downside risks in volatile market

The chart below shows the monthly returns for 360 ONE ELSS Tax Saver Nifty 50 Index Fund versus active ELSS funds category average in this calendar year. You can see that during this volatile period, 360 ONE ELSS Tax Saver Nifty 50 Index Fund was able to limit downside risks compared to active ELSS funds.

Source: Advisorkhoj Research as on 22^nd December 2025

Current Portfolio Construct

Source: Fund Factsheet as on 30^th Nov 2025

Who should invest in 360 ONE ELSS Tax Saver Nifty 50 Index Fund?

• Investors looking to save taxes under Section 80C.


• Investors who want capital appreciation or wealth creation over long investment tenures


• The scheme has a lock-in period of 3 years. You cannot redeem units of the scheme before the completion of 3 years from the investment date.


• Investors with high-risk appetites


• Investors who want to invest in passive schemes to eliminate unsystematic risks and lower costs.

Investors should consult their financial advisors or mutual fund distributors if 360 ONE ELSS Tax Saver Nifty 50 Index Fund is suitable for their investment needs.