Saturday, 31 March 2018

5 Best ELSS Tax Saving Mutual Funds - Direct Plan to invest in FY 2018-2019


5 Best ELSS Tax Saving Mutual Funds - Direct Plan to invest in FY 2018-2019

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 



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, CAMSKarvy, 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



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