Some of the ELSS tax saving mutual funds has given good returns in the last one year. Today, I will share 5 best ELSS tax saving mutual funds to invest in 2018. These ELSS tax mutual funds are shortlisted based on several key parameters.
What are ELSS Tax Saving Mutual Funds?
An ELSS (Equity Linked Savings
Scheme) is an open ended diversified equity mutual fund that invests primarily
in equity and equity-related products. The investment made in ELSS funds is
eligible for tax exemption u/s 80C upto Rs. 1.5 lakh. ELSS tax saving mutual
funds doesn’t just help you to save tax but also gives you an opportunity to
grow your money. Since ELSS is an equity-based fund, the returns from these ELSS
tax saving mutual funds reflect the returns from equity markets. ELSS tax saving mutual funds has a lock-in period of
three years.
Why should you invest in ELSS Tax Saving Mutual Funds?
ELSS is one of the best investment options to save tax
u/s 80C for an investment upto Rs. 1.5 lakh. ELSS Tax Saving Mutual Funds also
gives you an opportunity to grow your money from the potential of equity
market. The lock in period of an ELSS fund is much lower as compared to
traditional tax saving instruments like PPF, NSC, and bank fixed deposits,. You
have an option to choose for dividend option and get some gains even during the
lock-in period. The dividends you earn are also tax free.
Also read: Best performing mutual funds of 2017
Also read: Best performing mutual funds of 2017
Disadvantages of ELSS Tax Saving Mutual Funds
1. Risk factor: ELSS tax saving funds invests
primarily in equity and equity-related products, hence all the risks associated
with equity investments applicable to ELSS.
2. Restriction on
withdrawal: You cannot withdraw your funds before the completion of the mandatory
lock in period of three years.
Also read: Benefits of SIP | Advantages of SIP
Also read: Benefits of SIP | Advantages of SIP
Shortlisting parameters
1. Fund Performance: These ELSS tax saving mutual funds shortlisted on the basis of 3-5 years
performance.
2. AUM (Assets Under Management): Shortlisted on
the basis of AUM. All the selected ELSS tax saving mutual funds here are higher
in asset size – 1000 Cr or above.
3. Crisil Rating: Crisil rated these ELSS tax
saving mutual funds as Rank-1, Rank-2, and Rank-3.
4. Value Research Rating: Value Research rated
these ELSS tax saving mutual funds as 5 stars, 4 stars, and 3 stars.
On the basis of the above parameters, the 5 Best ELSS
Tax Saving Mutual Funds to invest in 2018 are given below
Scheme Name
|
Returns in Percentage*
|
Crisil Rank (For quarter
ended Sep 2017)
|
Value Research Rating
(Out of 5)
|
||
1 Year
|
3 Years
|
5 Years
|
|||
Reliance Tax Saver (ELSS) fund
|
45.65
|
13.89
|
22.56
|
3
|
3
|
Tata India Tax Savings Fund
|
44.06
|
18.26
|
21.4
|
1
|
5
|
Aditya Birla Sun Life Tax Relief 96
|
42.18
|
16.49
|
21.67
|
2
|
5
|
Axis Long term Equity Fund
|
37.03
|
12.44
|
22.5
|
3
|
4
|
DSP BlackRock Tax Saving Fund
|
35.3
|
15.94
|
20.31
|
3
|
4
|
*As on 4/1/2018 Data
Source: Value Research Online
|
1. Reliance Tax Saver (ELSS) Fund
Scheme Name
|
Returns in Percentage*
|
Crisil Rank (For quarter
ended Sep 2017)
|
Value Research Rating
(Out of 5)
|
||
1 Year
|
3 Years
|
5 Years
|
|||
Reliance Tax Saver (ELSS) fund
|
45.65
|
13.89
|
22.56
|
3
|
3
|
*As on 4/1/2018 Data
Source: Value Research Online
|
The main aim of this ELSS fund
is to generate long-term capital gains and invest in a stock portfolio predominantly
in equity and equity related instruments. This fund has given a very good
performance to the investors. The fund has generated a return of 45.65 per cent
in the last one year. Last three and five years returns of this fund are 13.89%
and 22.56% respectively. Value Research rates this ELSS fund as 3 Stars (Higher
is better). Crisil ranks this ELSS fund as Rank-3 (Lower is better). The
current NAV of this ELSS fund under the growth scheme is Rs 69.56.
2. Tata India Tax Savings Fund
Scheme Name
|
Returns in Percentage*
|
Crisil Rank (For quarter
ended Sep 2017)
|
Value Research Rating
(Out of 5)
|
||
1 Year
|
3 Years
|
5 Years
|
|||
Tata India Tax Savings Fund
|
44.06
|
18.26
|
21.4
|
1
|
5
|
*As on 4/1/2018 Data
Source: Value Research Online
|
The objective of the fund is
to provide income distribution and / or medium to long term capital gains while
at all times emphasising the importance of capital appreciation. The fund is
suitable for investors who aim
to seek capital appreciation opportunities in medium to long term horizon. This
ELSS fund performed well and has given a return of 44.06% to the investors in
the last one year. The fund has given a return of 18.26% and 21.40% in the last
three and five years respectively. Value Research rates this ELSS fund as 5
Stars (Higher is better). Crisil ranks this ELSS fund as Rank-1 (Lower is
better). The current NAV of this ELSS fund under the growth scheme is
Rs 81.33.
3. Aditya Birla Sun Life Tax Relief 96
Scheme Name
|
Returns in Percentage*
|
Crisil Rank (For quarter
ended Sep 2017)
|
Value Research Rating
(Out of 5)
|
||
1 Year
|
3 Years
|
5 Years
|
|||
Aditya Birla Sun Life Tax Relief 96
|
42.18
|
16.49
|
21.67
|
2
|
5
|
*As on 4/1/2018 Data
Source: Value Research Online
|
The objective of this ELSS fund
is to save tax while growing your money through equity investments. This ELSS fund
is suitable for investors who are seeking long-term capital growth. This ELSS fund
has been consistently performing well. The fund has given a return of 42.18% to
the investors in the last one year. The fund has generated a return of 16.49%
and 21.67% in the last three and five years respectively. Value Research rates
this ELSS fund as 5 Stars (Higher is better). Crisil ranks this ELSS fund as
Rank-2 (Lower is better). The current NAV of this ELSS fund under the
growth scheme is Rs 32.20.
4. Axis Long Term Equity Fund
Scheme Name
|
Returns in Percentage*
|
Crisil Rank (For quarter
ended Sep 2017)
|
Value Research Rating
(Out of 5)
|
||
1 Year
|
3 Years
|
5 Years
|
|||
Axis Long term Equity Fund
|
37.03
|
12.44
|
22.5
|
3
|
4
|
*As on 4/1/2018 Data
Source: Value Research Online
|
The objective of the fund is
to generate long term capital growth and invests in a diversified portfolio
predominantly consisting of equity and equity related instruments. The scheme
is suitable for an investment horizon of at least 3-5 years or more. This ELSS fund
also has been consistently performing well and given a return of 37.03% to the
investors in the last one year. Last three and five years returns of this fund
are 12.44% and 22.50% respectively. Value Research rates this ELSS fund as 4
Stars (Higher is better). Crisil ranks this ELSS fund as Rank-3 (Lower is
better). The current NAV of this ELSS fund under the growth scheme is
Rs 41.59.
5. DSP BlackRock Tax Saving Fund
Scheme Name
|
Returns in Percentage*
|
Crisil Rank (For quarter
ended Sep 2017)
|
Value Research Rating
(Out of 5)
|
||
1 Year
|
3 Years
|
5 Years
|
|||
DSP BlackRock Tax Saving Fund
|
35.3
|
15.94
|
20.31
|
3
|
4
|
*As on 4/1/2018 Data
Source: Value Research Online
|
The main objective of this
ELSS is to generate medium to long-term capital growth from a diversified
portfolio that is substantially constituted of equity and equity related
securities of corporates. This ELSS fund is also performing well and has given a
return of 35.30% to the investors in the last one year. The fund has given a
return of 15.94% and 20.31% in the last three and five years respectively. Value
Research rates this ELSS fund as Stars (Higher is better). Crisil ranks this
ELSS fund as Rank-3 (Lower is better). The current NAV of this ELSS fund under
the growth scheme is Rs 48.63.
Disclaimer: This
article is strictly for informational purposes only. ELSS tax saving mutual
funds does not guarantee any returns. Past performance of an ELSS fund may or
may not sustain in the future. Please consult a mutual fund advisor or a
financial planner before taking any investment decision.
Also read: Equity Linked Saving Scheme (ELSS)
Also read: All about ELSS | Tax Saving Mutual Funds
Also read: Best Mutual Funds to invest in 2018
Also read: How to start a SIP?
If you liked this article, share it with your friends and colleagues through social media. Your opinion matters, please share your comments.
Best ELSS Tax Saving Mutual Funds to invest in 2018
Also read: Equity Linked Saving Scheme (ELSS)
Also read: All about ELSS | Tax Saving Mutual Funds
Also read: Best Mutual Funds to invest in 2018
Also read: How to start a SIP?
If you liked this article, share it with your friends and colleagues through social media. Your opinion matters, please share your comments.
Best ELSS Tax Saving Mutual Funds to invest in 2018
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