Can you throw some light on how some of the ELSS funds have performed in the Indian context over the last 1 year to five years and how to look at selection?
Answer
Answer
ELSS funds are nothing but equity funds but there is a mandatory lock in period of 3 years on these funds. They force a long term approach to investing in equity funds for this very reason. ELSS funds are also best seen over longer time frames of 5 years and above. However, you must still look at shorter time frames for analysis purely because it gives a picture of consistency on these funds.
Scheme Name
Return 1 Year (%) Regular
Return 1 Year (%) Benchmark
Return 3 Year (%) Regular
Return 3 Year (%) Benchmark
Return 5 Year (%) Regular
Return 5 Year (%) Benchmark
Return Since Launch Direct
Return Since Launch Benchmark
Aditya Birla Sun Life Tax Relief 96
6.05
12.03
13.62
15.52
10.49
9.98
16.21
12.80
Axis Long Term Equity
16.77
12.03
18.61
15.52
11.99
9.98
19.95
10.42
Baroda ELSS 96
6.67
12.03
8.54
15.52
5.04
9.98
11.20
12.80
BNP Paribas Long Term Equity Fund
16.04
11.63
14.93
15.28
8.67
9.65
14.38
11.79
BOI AXA Tax Advantage
17.04
10.55
16.07
14.73
9.23
9.63
14.69
17.29
Canara Robeco Equity Tax Saver
12.62
12.64
15.46
15.89
9.05
9.72
13.28
12.72
DSP Tax Saver
16.18
10.49
13.85
14.62
11.28
9.50
16.08
9.87
Edelweiss Long Term Equity Fund (Tax Savings)
11.04
10.49
12.10
14.62
8.17
9.50
13.61
15.51
Essel Long Term Advantage Fund
9.29
12.64
12.30
15.89
12.44
12.70
Franklin India Taxshield
6.40
10.49
10.37
14.62
7.90
9.50
14.21
15.48
HDFC Taxsaver
4.80
10.49
9.14
14.62
5.57
9.50
11.92
13.35
HSBC Tax Saver Equity
9.80
12.03
12.05
15.52
8.12
9.98
13.13
10.44
ICICI Prudential Long Term Equity Fund (Tax Saving)
9.84
10.49
11.92
14.62
8.68
9.50
14.83
13.87
IDBI Equity Advantage Fund
7.04
12.03
12.75
15.52
7.95
9.98
19.23
14.79
IDFC Tax Advantage (ELSS)
3.22
12.03
13.21
15.52
9.25
9.98
14.79
16.39
Indiabulls Tax Savings Fund
9.97
10.55
1.69
3.95
Invesco India Tax Plan
10.78
12.03
14.54
15.52
10.42
9.98
17.05
10.46
JM Tax Gain
16.63
10.55
17.14
14.73
10.67
9.63
15.72
9.81
Kotak Tax Saver Fund
14.09
10.49
14.08
14.62
9.97
9.50
14.03
12.43
LIC MF Tax Plan
13.64
10.49
15.86
14.62
9.20
9.50
14.63
14.11
L&T Tax Advantage
6.14
12.03
11.83
15.52
9.21
9.98
13.59
11.81
Mahindra Mutual Fund Kar Bachat Yojana
6.19
11.63
6.20
15.28
7.83
11.14
Mirae Asset Tax Saver Fund
15.41
11.63
18.93
15.28
19.20
12.14
Motilal Oswal Long Term Equity Fund
14.77
10.49
15.61
14.62
15.27
8.29
Nippon India Tax Saver (ELSS) Fund
2.52
12.64
6.15
15.89
3.81
9.72
12.99
12.80
PGIM India Long Term Equity Fund
9.16
12.03
13.04
15.52
11.49
13.40
Principal Tax Savings
4.02
10.49
12.37
14.62
8.99
9.50
14.02
13.35
Quant Tax Plan
4.57
15.11
11.11
16.62
11.63
9.73
13.87
12.69
Quantum Tax Saving
-0.08
17.44
18.04
10.24
16.44
14.58
SBI Magnum Taxgain
5.36
10.55
9.10
14.73
6.30
9.63
11.97
Sundaram Diversified Equity Fund
8.12
12.03
10.65
15.52
8.20
9.98
11.78
13.07
Tata India Tax Savings Fund
15.31
17.44
15.96
18.04
12.37
10.24
16.85
12.94
Taurus Tax Shield
9.32
12.03
15.14
15.52
9.94
9.98
11.93
12.80
Union Long Term Equity
11.85
10.55
10.62
14.73
5.27
9.63
10.63
14.62
UTI Long Term Equity Fund
11.67
10.49
11.84
14.62
8.13
9.50
12.65
13.32
Here again you can see the outperformance comes from longer period holding. Also, you need to ensure that direct funds can make a lot more sense for you to give that added alpha through lower costs. You must ideally opt for low cost approach and also ensure that you get as close to long term holding as possible.