Top ELSS mutual funds chosen by investors in 2020-21 on Groww. Full list here
ELSS has emerged as a popular mutual fund category in the recent years, especially among salaried professionalsInvestors have the option to invest in ELSS either through Systematic Investment Plan (SIP) or by making lump sum investments
PremiumAround 54% investors above the age of 40 chose to park lumpsum amount of money in Equity Linked Saving Scheme (ELSS) from January 2020 till March 2021, showed data released by Groww.
ELSS has emerged as a popular mutual fund category in the recent years, especially among salaried professionals. Low lock-in period, capital appreciation potential and tax benefits have made ELSS a one of the most preferred investments. For investments made in ELSS, a deduction up to ₹1.5 lakh is allowed under Section 80C. These equity-linked saving schemes come with a lock-in period of 3 years. "Being a diversified equity mutual fund it also serves the purpose of long term capital growth along with tax-saving benefits," Groww mentioned.
Investors have the option to invest in ELSS either through Systematic Investment Plan (SIP) or by making lump sum investments.
Around 15% of investors in the age group of 25-40 invested in ELSS funds on its platform between January 2020 and March 2021, according to Groww. As many as 41% showed a slight preference for lumpsum investments while 38% chose to invest in ELSS via the SIP route.
The average amount invested by an ELSS investor on Groww in the period stood at ₹43,000.
The month-on-month data showed that the interest in ELSS peaked in the first quarter of the year. In January, February and March, ELSS transactions are 41.6% more than the transactions in ELSS happening around the year, the data revealed.
"The reason behind the surge in ELSS investments in the first quarter of the year could be the tax-saving proof submission deadlines that organisations impose, the tax-saving deadline being March 31," according to Groww.
Commenting on the recent trend, Harsh Jain, co-founder and COO, Groww, said, "From January 2020 till March 2021, almost 20% of the investors on Groww chose ELSS. Of the total assets under management for equity schemes, 17% was allocated to ELSS."
| Fund Name | 1 Yr Absolute Returns* | 3 Yr CAGR# | 5 Yr CAGR# |
| Axis Long Term Equity Direct Plan Growth | 21.22% | 15.65% | 16.44% |
| Mirae Asset Tax Saver Fund Direct Growth | 23.37% | 18.83% | 22.45% |
| Aditya Birla Sun Life Tax Relief 96 Direct Growth | 16.29% | 8.96% | 13.84% |
| Canara Robeco Equity Tax Saver Direct Growth | 28.30% | 18.51% | 17.51% |
| Tata India Tax Savings Fund Direct Growth | 13.31% | 12.51% | 15.70% |
| #Returns are as on 25 March, 2021 | *31 December, 2019 to 30 December 2020 |
Most numbers of ELSS investments done on Groww were from the following cities (arranged in descending order) - Delhi NCR, Pune, Mumbai, Bengaluru, Kolkata, Hyderabad, Lucknow, Ahmedabad, Patna and Jaipur.
“While lump sum is the preferred mode to invest, investors are also opting for the SIP route to invest in ELSS funds especially in the 25-40 years age group. It is important to note that ELSS is like any other equity fund and investing periodically helps one cultivate financial discipline and reap benefits of rupee cost averaging," Groww COO added.
"As awareness around ELSS as a product increases, more investors invest in ELSS mutual funds methodically as opposed to making last minute investments," he further mentioned.
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