Active Stocks
Thu Apr 18 2024 15:59:07
  1. Tata Steel share price
  2. 160.00 -0.03%
  1. Power Grid Corporation Of India share price
  2. 280.20 2.13%
  1. NTPC share price
  2. 351.40 -2.19%
  1. Infosys share price
  2. 1,420.55 0.41%
  1. Wipro share price
  2. 444.30 -0.96%
Business News/ Mutual Funds / Mutual Fund Returns: These 10 ELSS schemes beat the benchmark index in the past 5 years
BackBack

Mutual Fund Returns: These 10 ELSS schemes beat the benchmark index in the past 5 years

There are a total of ten equity linked savings schemes (ELSS), which have managed to beat their benchmark index in the past five years. These include Quant ELSS Tax Saver Fund and Bank of India ELSS Tax Saver Fund.

A benchmark index is a standard against which the performance of a mutual fund can be evaluated. Premium
A benchmark index is a standard against which the performance of a mutual fund can be evaluated.

Before investing in a mutual fund scheme, investors often weigh the pros and cons of a slew of factors. These include macro-economic considerations, category of scheme, past performance of fund house and that of fund manager (s) and importantly – the historical performance of the scheme to invest into vis-à-vis other schemes in the same category.

Here, we share the past performance of equity linked savings schemes (ELSS), and short list the ones which have managed to beat the benchmark index. Upon closer examination, we have concluded that there are 10 such schemes, which managed to beat their benchmark index in the past five years.

What is a benchmark index?

A benchmark index is a standard against which the performance of a mutual fund can be evaluated. Two benchmark indices used to evaluate the performance of ELSS schemes in the table below are NIFTY 500 TRI and BSE 500 TRI. Let us now understand what exactly ELSS funds are.

What are ELSS funds?

ELSS refers to the mutual fund schemes which invest a minimum of 80 percent of their assets in stocks in accordance with Equity Linked Saving Scheme, 2005, notified by the Ministry of Finance.

These schemes have a lock-in period of three years (shortest amongst all other tax-saving options). Investment in these schemes entitles taxpayers to claim deduction under Sec 80C of the Income Tax (I-T) Act up to a maximum of 1,50,000 in a financial year.

ELSS funds                                           5-year-return (%)Benchmark (%)
Quant ELSS Tax Saver Fund                               31.5818.31
Bank of India ELSS Tax Saver Fund                        25.1718.48
SBI Long Term Equity Fund                             21.5718.48
Bandhan ELSS Tax Saver Fund                  20.9818.48
DSP ELSS Tax Saver Fund                                     20.5818.31
JM ELSS Tax Saver Fund                                19.9018.48
Mirae Asset ELSS Tax Saver Fund                       19.3618.31
Motilal Oswal ELSS Tax Saver Fund      19.4518.31
Union ELSS Tax Saver Fund                          19.1118.48
Canara Robeco ELSS Tax Saver                  18.7618.48

(Source: AMFI, returns as on Feb 6, 2024)

As we can see in the table above, highest CAGR (compound annual growth rate) returns were delivered by Quant ELSS Tax Saver Fund (31.58 per cent), whereas the benchmark index return was 18.31 percent.

Other ELSS schemes have given annualised returns in the range of 18-25 percent whereas the benchmark index stands at 18.48 per cent. Bank of India ELSS Tax Saver Fund delivered 25.17 per cent while Canara Robeco ELSS Tax Saver gave 18.76 per cent.

It is vital to know that the past returns of a mutual fund scheme do not guarantee its future returns by any means. So, it is recommended to speak to a Sebi-registered investment advisor for making investment related decisions.

Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Mutual Fund news and updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 08 Feb 2024, 10:01 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App