5 Best ELSS Tax Saving Mutual Funds - Direct Plan to invest in FY 2018-2019
Some of the ELSS tax saving
mutual funds - Direct Plan has given good returns in the last financial year
2017-2018. Today,
I will share 5 best ELSS tax saving mutual funds - Direct Plan to invest
in FY 2018-2019. These ELSS tax saving mutual funds - Direct Plan are
shortlisted based on several key parameters.
What is ELSS Tax Saving Mutual Funds?
ELSS (Equity Linked Savings Scheme) tax saving mutual fund is an open-ended
diversified equity mutual fund that invests primarily in equity and
equity-related products. The investment made in ELSS tax saving mutual funds
is eligible for tax exemption u/s 80C up to 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 from the potential of the equity
market.
ELSS tax saving mutual funds has a lock-in period of three years.
Also read: All about ELSS | Tax Saving Mutual Funds
Also read: All about ELSS | Tax Saving Mutual Funds
What is Direct Mutual Funds?
Direct Mutual
Funds means the investors have
to invest directly in direct plans of mutual fund companies without any
involvement of a mutual fund broker or distributor. Investors can purchase
direct mutual funds through respective AMC websites, CAMS, Karvy, MF Utility or other online
websites which offer direct mutual funds online.
Why should you invest in Direct Mutual Funds?
Direct mutual funds are
those where mutual fund companies do not charge distributor expenses. As there
is no middleman cost, therefore the expense ratio of direct mutual funds is
lesser than the regular mutual funds. Because of lesser expense ratio, the NAV
of a direct mutual fund plan would be higher than the NAV of a regular mutual
fund plan.
Shortlisting parameters
1. Fund Performance: These ELSS tax saving mutual funds shortlisted on the
basis of 1-5 years performance.
2. Value Research Rating: Value Research rated
these ELSS tax saving mutual funds as 5 stars and 4 stars.
3. Assets Under Management: All the selected ELSS
tax saving mutual funds here are higher in asset size – 1000 Cr or above.
5 best ELSS Tax Saving Mutual Funds – Direct Plan to invest in FY 2018-2019
On the basis of the above parameters, the 5 best ELSS Tax Saving Mutual Funds – Direct Plan to invest in FY 2018-2019 are given below
Scheme Name
|
Returns in Percentage*
|
Value Research Rating
(Out of 5)
|
Net Assets (Cr)
|
Launch
|
||
1 Year
|
3 Years
|
5 Years
|
||||
IDFC Tax Advantage (ELSS) Fund - Direct Plan
|
26.33
|
14.04
|
23.11
|
5
|
1084
|
Jan-13
|
Aditya Birla Sun Life Tax Relief 96 - Direct Plan
|
22.33
|
13.83
|
23.7
|
5
|
5032
|
Jan-13
|
Axis Long Term Equity Fund - Direct Plan
|
18.92
|
10.89
|
24.71
|
5
|
16161
|
Jan-13
|
Tata India Tax Savings Fund - Direct Plan
|
17.6
|
14.21
|
22.27
|
5
|
1219
|
Jan-13
|
L&T Tax Advantage Fund - Direct Plan
|
19.03
|
14.57
|
20.47
|
4
|
2989
|
Jan-13
|
*As on 28/3/2018 Data Source:
Value Research Online
|
1. IDFC Tax Advantage (ELSS) Fund – Direct Plan
Scheme Name
|
Returns in Percentage*
|
Value Research Rating
(Out of 5)
|
Net Assets (Cr)
|
Launch
|
||
1 Year
|
3 Years
|
5 Years
|
||||
IDFC Tax Advantage (ELSS) Fund - Direct Plan
|
26.33
|
14.04
|
23.11
|
5
|
1084
|
Jan-13
|
*As on 28/3/2018 Data
Source: Value Research Online
|
IDFC Tax Advantage (ELSS) Fund is suitable
for investors who are seeking to create wealth over a long period of time.
Value Research rates this ELSS tax saving mutual fund as 5 Stars (Higher is
better).
2. Aditya Birla Sun Life Tax Relief 96 – Direct Plan
Scheme Name
|
Returns in Percentage*
|
Value Research Rating
(Out of 5)
|
Net Assets (Cr)
|
Launch
|
||
1 Year
|
3 Years
|
5 Years
|
||||
Aditya Birla Sun Life Tax Relief 96 - Direct Plan
|
22.33
|
13.83
|
23.7
|
5
|
5032
|
Jan-13
|
*As on 28/3/2018 Data
Source: Value Research Online
|
This ELSS tax saving mutual
fund has been consistently performing well. This tax saving mutual fund is
suitable for investors who are seeking long-term capital growth. Value Research
rates this ELSS tax saving mutual fund as 5 Stars (Higher is better).
3. Axis Long Term Equity Fund – Direct Plan
Scheme Name
|
Returns in Percentage*
|
Value Research Rating
(Out of 5)
|
Net Assets (Cr)
|
Launch
|
||
1 Year
|
3 Years
|
5 Years
|
||||
Axis Long Term Equity Fund - Direct Plan
|
18.92
|
10.89
|
24.71
|
5
|
16161
|
Jan-13
|
*As on 28/3/2018 Data
Source: Value Research Online
|
The tax saving mutual fund is
suitable for an investment horizon of at least 3-5 years or more. This ELSS tax
saving mutual fund also has been consistently performing well. Value Research
rates this ELSS tax saving mutual fund as 5 Stars (Higher is better).
4. Tata India Tax Savings Fund – Direct Plan
Scheme Name
|
Returns in Percentage*
|
Value Research Rating
(Out of 5)
|
Net Assets (Cr)
|
Launch
|
||
1 Year
|
3 Years
|
5 Years
|
||||
Tata India Tax Savings Fund - Direct Plan
|
17.6
|
14.21
|
22.27
|
5
|
1219
|
Jan-13
|
*As on 28/3/2018 Data
Source: Value Research Online
|
The fund is suitable for
investors who aim to seek
capital appreciation opportunities in medium to long-term
horizon. Value Research rates this ELSS tax saving mutual fund as 5
Stars (Higher is better).
5. L&T Tax Advantage Fund – Direct Plan
Scheme Name
|
Returns in Percentage*
|
Value Research Rating
(Out of 5)
|
Net Assets (Cr)
|
Launch
|
||
1 Year
|
3 Years
|
5 Years
|
||||
L&T Tax Advantage Fund - Direct Plan
|
19.03
|
14.57
|
20.47
|
4
|
2989
|
Jan-13
|
*As on 28/3/2018 Data
Source: Value Research Online
|
The objective of this ELSS tax saving mutual fund is to
generate long-term capital growth and invests in a diversified portfolio of
predominantly consisting equity and equity-related securities. Value Research
rates this ELSS tax saving mutual fund as 4 Stars (Higher is better).
Notable Points
1. ELSS tax saving mutual funds invests
in equity and equity-related products, hence all the risks associated with
equity investments applicable to these funds.
2. You cannot withdraw your
funds before the completion of the mandatory lock-in
period of three years.
Disclaimer: This article is strictly for educational/informational purposes only. ELSS tax saving mutual funds does not guarantee any returns. Past performance of ELSS tax saving mutual funds may or may not sustain in the future. Please consult a financial planner or a mutual fund advisor before taking any investment decision.
Also read: What is SIP (Systematic Investment Plan)?
Also read: Benefits of SIP | Advantages of SIP
Also read: Direct Mutual fund platform in India to invest online
Also read: Mutual Funds Apps for investing in mutual funds
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5 Best ELSS Tax Saving Mutual Funds - Direct Plan to invest in FY 2018-2019
Wow! amazing post.. Thanks for sharing!
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