Tax-Saving mutual funds: Equity-Linked Savings Schemes (ELSS) remains the only pure equity instrument, as par of the Section 80C tax deduction basket. And January – March is usually the time period when investors do their last-minute tax saving instruments. But these funds appeal to the long-term investor as well, even if your tax deductions are taken care of. Just mind the lock-in
Equity-Linked Savings Schemes (ELSS) are not just for tax savings. Data shows that ELSS have delivered better returns like any other equity funds over the long run too, say 7-10 years. Performance as measured by 10-year rolling returns that calculated from the last 15 years’ NAV history shows that the ELSS category delivered a compounded annualised return of 13.6% while the Nifty 500 – TRI clocked 12.8%. Two of these schemes are in MC30; a curated basket of 30 best mutual fund (MF) schemes. Below are the top ELSS schemes that delivered better long term return over the last 15 years. Note: These are not Moneycontrol recommendations as they are based simply on past returns. For Moneycontrol’s top ELSS picks, refer to MC30.
2/13
Axis ELSS Tax Saver Fund Average 10-year rolling return (CAGR): 16.9% Latest corpus: Rs 33,562 crore
3/13
DSP ELSS Tax Saver Fund Average 10-year rolling return (CAGR): 15.6% Latest corpus: Rs 13,846 crore
