ELSS refers to Equity Linked Savings Schemes. Despite the scheme having a three-year lock-in period, it is preferred by investors nationwide due to its dual benefits. That means you enjoy higher market-linked returns and qualify for tax benefits under Section 80C for your contributions to this scheme. When filing your returns, you can lower your taxable income by up to Rs 1,50,000.
While the above provides general information, it is interesting that several funds in this category have doubled investors’ invested capital in just three years.
ELSS Funds that Doubled Investors’ Money in 3 Years
Here are the best ELSS funds that have given investors attractive returns.
Quant ELSS Tax Saver fundsÂ
Launched on 13th April 2000, Quant ELSS Tax Saver Funds has delivered absolute returns of 101.92% and annualized returns of 26.37%. The fund operates under the active management and dynamic investing approach of Quant Fund.
The scheme currently comprises 46 stocks, with large-cap holdings dominating the portfolio with a weightage of 38.63%.
The Quant ELSS scheme tracks the performance of NIFTY 500 TRI. Currently, Ankit Pande and Vasav Sahgal manage this scheme.
As of 18th July 2024, the scheme’s NAV is Rs 407.85.
SBI Long-Term Equity
Being the oldest in the industry under the ELSS category, this fund has delivered an absolute return of 109.02% and an annualized return of 27.83%. The scheme tracks the performance of the BSE 500 TRI. Regarding fund management, Mr Dinesh Balachandran, this scheme’s fund manager, follows a mix of ‘bottom-up’ and ‘top-down’ approaches for stock selection. It considers only those securities that have a high margin of safety.
Regarding its composition, SBI Long Term Equity has 62 stocks in its portfolio, with large-cap holdings weighing 51.21%.
As of 18th July 2024, the scheme’s NAV stands at Rs 434.59.
HDFC ELSS Tax Saver Fund
Launched on 31st March 1996, this scheme has delivered an absolute return of 102.90% and annualized returns of 26.57%. As of 18th July 2024, the NAV of this scheme stood at Rs 1348, while the assets under management were around Rs 15,674.35 crores.
HDFC ELSS Tax Saver tracks the Nifty 500 TRI. This scheme is currently managed by Roshi Jain and Dhruv Muchhal, who, after thorough analysis, have allocated 62.22% of holdings into large-cap investments. Its NAV as of July 2024 is around Rs. 1,352.
JM ELSS Tax Saver Funds
While not precisely doubling the invested capital, the JM ELSS Tax Saver scheme has delivered an absolute return of 91.56% and an annualized return of 24.17% in the last three years. Launched on 31st March 2008, the fund is currently managed by Asit Bhandarkar and Chaitanya Choksi.
This JM ELSS Tax Saver scheme comprises 55 stocks and has a decent weightage in mid-cap and small-cap companies. As of 18th July 2024, the scheme’s NAV stands at Rs 49.1927.
Conclusion
Though there are ELSS funds that generate higher returns compared to traditional savings schemes, you must assess the risk involved with this investment. When you plan to invest in MF, choose funds with a strong track record and consistent performance. Diversify your investments to mitigate risk and stay updated with market trends.
