scorecardresearchMF Returns: These ELSS schemes delivered as high as 23 percent in past five year

MF Returns: These ELSS schemes delivered as high as 23 percent in past five year

Updated: 29 Aug 2022, 08:17 AM IST
TL;DR.
These mutual fund schemes have given a return of anywhere between 14-23 percent in the past five years. Read further to know more on this
ELSS funds are equity funds that allow you to save tax on your investment as they are eligible for deduction under Section 80C

ELSS funds are equity funds that allow you to save tax on your investment as they are eligible for deduction under Section 80C

The rate of returns given by mutual funds in the past is one of the key factors that help determine their performance. However, there are a number of other factors, too, that go into evaluating the fund scheme’s overall performance such as reputation of fund house, macro-economic factors, stock selection, among others.

Here we take a look at the ELSS funds and returns delivered by some top-performing fund schemes. But before we proceed, we try and define what exactly are ELSS funds.

These are equity funds which allow you to save tax on your investment as they are eligible for deduction under Section 80C of the Income Tax Act, 1961.

As shown in the table below, Quant Tax Plan gave the highest return of 23.77 percent compounded return in the past five years, Mirae Asset Tax Saver Fund delivered a return of 17.42 percent during the same period, Bank of India Tax Advantage Fund gave a return of 16.70 percent and IDFC Tax Advantage (ELSS) Fund gave a return of 15.28 percent.

ELSS funds                                       5-year-returns (%)
Quant Tax Plan                              23.77
Mirae Asset Tax Saver Fund              17.42
Bank of India Tax Advantage Fund   16.70
IDFC Tax Advantage (ELSS) Fund  15.28
Union Long Term Equity            14.66

(Direct returns as on Aug 18, 2022)

According to the latest AMFI data for the month of July, there are currently 39 schemes in the ELSS category which saw a net inflow of 327 crore during the month of July and total net assets under management (AUMs) as on July 31, 2022 was 1.47 lakh crore.

 

Three-year returns:

The past three-year returns in this category among the top-performing funds ranges between 25 to 41 percent. As we can see in the table below, Quant Tax Plan delivered 41.67 percent return in the past three years, Bank of India Tax Advantage Fund gave a return of 28 percent and IDFC Tax Advantage (ELSS) Fund gave 26 percent during this period.

ELSS Funds                                                3-year-returns (%)
Quant Tax Plan                                          41.67
Bank of India Tax Advantage Fund     28.01
IDFC Tax Advantage (ELSS) Fund       26.19
Parag Parikh Tax Saver Fund                        25.91
Canara Robeco Equity Tax Saver Fund       25.64

(Direct returns as on Aug 18, 2022)

 

Here we share more details on the top-performing fund by Quant Mutual Fund:

Quant Tax Plan: It was launched in March 2000. The scheme is offered in two options: growth and IDCW.

As per the AMC factsheet, the scheme has delivered a return of 14.97 percent since its inception on April 13, 2000. This means if someone had invested 10,000 that time, it would have grown to 2,23,995 as on July 31, 2022.

The top portfolio holdings in the mutual fund scheme include SBI, ITC, ICICI Bank, Patanjali Foods, Adani Ports and SEZ, L&T, Adani Enterprises, UPL, Indian Hotels and Vedanta.

Article
CAGR shows the smoothed returns over a number of years. 
First Published: 29 Aug 2022, 08:17 AM IST