Equity Linked Savings Schemes (ELSS) are the most popular option when it comes to tax deductions on various investments under Section 80C. 1.5 lakh per annum from your taxable income as they not only have a history of giving higher returns than traditional investments like Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Fixed Deposit (FD) Is. and Employees’ Provident Fund (EPF) but also has the lowest lock-in period of 3 years among all tax saving investment options.
ELSS funds are diversified equity funds and are also considered as flexi cap funds with tax deductions as an addition. The fund invests across sector categories, Large Cap, Mid Cap and Small Cap by Market Capitalisation. You can invest in ELSS through SIP, which ensures rupee cost averaging like any equity investment.
The historical record of ELSS funds shows that they outperform other tax-saving products in terms of returns while also outperforming inflation. There are around 24 ELSS funds in the market but choosing the best performing one to invest in requires considering a lot of factors. Investment Objective, Time Horizon, Risk Tolerance, Performance Against Its Benchmark, Performance Against Its Category, Consistency Of Performance, Fund Manager’s Experience, AMC Track Record, Expense Ratio, Exit Load, Net Asset Value (NAV) should be considered for. ), and many more. So, if you are thinking of investing in ELSS funds in 2023, let’s quickly review 2022 and determine the best performers just for an insight.
based on an interview with CA Manish P Hinger, Founder, FintooThe spokesperson said that out of around 35 funds currently available to invest in the ELSS category which helps investors save tax as well as create long term wealth under section 80C, here are the top 5 performing ELSS There are mutual funds that have generated better risk-adjusted returns. Returns in the current year 2022 as compared to their peers in the same category.
“Top 5 ELSS Funds for the year 2022 are Quant Tax Plan, HDFC Tax Saver Fund, SBI Tax Advantage Fund, Kotak Tax Saver Fund and Nippon India Tax Saver Fund with 1 Year Return of 14.38%, 13.38%, 10.80%, 9.84% There is return. % and 9.37% respectively as compared to the 1-year category average of ELSS funds which is just 4.34%. While these funds have done exceptionally well in the current year, only Quant Tax Plan and HDFC Tax Saver Fund have been consistent winners in the long run,” claimed CA Manish P Hinger.
It is further suggested that investors should not rely only on short-term performance and take investment decisions based on the long-term trajectory and consistent performance of the fund, said CA Manish P Hinger.
According to information from the Association of Mutual Funds in India (AMFI), ELSS funds reported negative outflows Net AUM of -253.88 Crores, 1,58,601.58 Crore, and Average Net AUM 1,55,947.40 crore for the month of November 2022. ELSS funds saw positive inflows 385.95 crores in the month of October, while AMFI has not yet made the December figures public.
The views and recommendations given above are of individual analysts or broking companies and not of Mint.
catch all business News, market news, today’s fresh news events and Breaking News Update on Live Mint. download mint news app To get daily market updates.