{"id":5207,"date":"2023-02-23T04:33:22","date_gmt":"2023-02-23T04:33:22","guid":{"rendered":"https:\/\/blog.certifiedfinancialguardian.com\/?p=5207"},"modified":"2023-02-23T05:03:01","modified_gmt":"2023-02-23T05:03:01","slug":"why-elss-is-your-best-choice-to-build-wealth-and-save-tax","status":"publish","type":"post","link":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/2023\/02\/23\/why-elss-is-your-best-choice-to-build-wealth-and-save-tax\/","title":{"rendered":"Why ELSS Is Your Best Choice to Build Wealth and Save Tax"},"content":{"rendered":"\n

If you are young, earning a respectable or high income, want to achieve your envisioned financial goals, counter inflation, have an investment time horizon of 3 years+, are willing to take a calculated risk, and want to save tax while you invest, then Equity-Linked Saving Schemes or ELSS<\/a> is a worthwhile investment avenue.<\/p>\n\n\n\n

Investment in ELSS entitles you to a deduction of up to Rs 1.50 lakh (from the Gross Total Income) under Section 80C of the Income-tax Act, 1961 in the financial year in which the investment is made. Effectively, you could save up to Rs 46,800 a year, assuming you are in the highest tax bracket and opting for the Old Tax Regime.<\/p>\n\n\n\n

What is ELSS?<\/em><\/strong><\/p>\n\n\n\n

ELSS, also known as a tax-saving fund, is an open-ended diversified equity scheme that comes with the dual advantage–tax-saving benefit under Section 80C and wealth-building potential. In short, you get two birds with one stone.<\/p>\n\n\n\n

As per the regulatory guideline, an ELSS is mandated to invest at least 80% of its total assets in equity and equity-related instruments in accordance with the equity-linked savings scheme 2005, as notified by the Ministry of Finance.<\/p>\n\n\n\n

Furthermore, there is a mandatory lock-in period of 3 years. Simply put, you cannot redeem your investment in ELSS before the completion of three years from the date of your investment.<\/p>\n\n\n\n

Now, while some of you may find the lock-in period restraining your liquidity and, therefore, a deterrent, note that compared to the other tax-saving avenues, ELSS has the least lock-in period.<\/p>\n\n\n\n

Table 1: Lock-in Period And Return Potential of ELSS versus Other Tax-Saving Avenues<\/em><\/strong><\/p>\n\n\n\n

\n
\n\n\t\n\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t
Tax Saving Instrument<\/b><\/td>\n\t\t\tReturn Potential<\/b><\/td>\n\t\t\tLock-in period<\/b><\/td>\n\t\t<\/tr>\n\t\t
Equity-Linked Saving Scheme<\/td>\n\t\t\tHigh*
\n\t\t\t(Market-linked)<\/td>\n\t\t\t		3 years<\/td>\n\t\t<\/tr>\n\t\t
Unit-Linked Insurance Plan<\/td>\n\t\t\tAverage-to-High#
\n\t\t\t(Market-linked)<\/td>\n\t\t\t		5 years<\/td>\n\t\t<\/tr>\n\t\t
National Saving Certificate<\/td>\n\t\t\t7.00%<\/td>\n\t\t\t5 years<\/td>\n\t\t<\/tr>\n\t\t
5-Yr Tax Saver Bank FD<\/td>\n\t\t\t6.50%$<\/td>\n\t\t\t5 years<\/td>\n\t\t<\/tr>\n\t\t
Senior Citizens Savings Scheme<\/td>\n\t\t\t8.00%<\/td>\n\t\t\t5 years<\/td>\n\t\t<\/tr>\n\t\t
Public Provident Fund<\/td>\n\t\t\t7.10%<\/td>\n\t\t\t15 years<\/td>\n\t\t<\/tr>\n\t\t
Sukanya Samriddhi Yojana<\/td>\n\t\t\t7.60%<\/td>\n\t\t\t21 years<\/td>\n\t\t<\/tr>\n\t\t
National Pension Scheme<\/td>\n\t\t\tLow-to-High@
\n\t\t\t(Market-linked)<\/td>\n\t\t\t		Till 60 years of age<\/td>\n\t\t<\/tr>\n\t<\/tbody>\n<\/table>\n<\/div>\n<\/center>\n\n\n\n

*Depends on your ELSS selection.
#Depends on the type of asset class orientation of the fund you choose under ULIP.
$ 5-Yr Tax Saver Bank FD interest rate considered is that of SBI.
The current rate of interest as applicable is taken for other tax-saving instruments. Interest rates are subject to change.
@Depends on the scheme chosen under the NPS <\/p>\n\n\n\n

In my view, the 3 years lock-in for ELSS inculcates the needed discipline of staying invested for the long term considering that your hard-earned money is invested by the fund manager in equity and equity-related instruments with the objective of capital appreciation.<\/p>\n\n\n\n

Having said that, enough care should be taken when selecting ELSS or tax-saving mutual funds. As you can see in Table 2, the difference between the top and bottom-performer in the ELSS is glaring. Not all ELSS are worth your hard-earned money.<\/p>\n\n\n\n

Table 2: Performance of ELSS or Tax-Saving Mutual Funds<\/em><\/strong><\/p>\n\n\n\n

\n
\n\n\t\n\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t
Scheme Name<\/b><\/td>\n\t\t\t<\/td>\n\t\t\tAbsolute Returns (%)<\/b><\/td>\n\t\t\tCAGR Returns (%)<\/b><\/td>\n\t\t\tRisk Ratios<\/b><\/td>\n\t\t<\/tr>\n\t\t
AUM (Rs crore)<\/b><\/td>\n\t\t\t1 Year<\/b><\/td>\n\t\t\t2 Years<\/b><\/td>\n\t\t\t3 Years<\/b><\/td>\n\t\t\t5 Years<\/b><\/td>\n\t\t\t7 Years<\/b><\/td>\n\t\t\tStd. Dev.<\/b><\/td>\n\t\t\tSharpe<\/b><\/td>\n\t\t\tSortino<\/b><\/td>\n\t\t<\/tr>\n\t\t
Quant Tax Plan<\/a><\/td>\n\t\t\t2692.01<\/td>\n\t\t\t6.05<\/td>\n\t\t\t24.47<\/td>\n\t\t\t35.41<\/td>\n\t\t\t21.93<\/td>\n\t\t\t23.68<\/td>\n\t\t\t27.01<\/td>\n\t\t\t0.328<\/td>\n\t\t\t0.536<\/td>\n\t\t<\/tr>\n\t\t
Parag Parikh Tax Saver Fund<\/a><\/td>\n\t\t\t1045.89<\/td>\n\t\t\t8.93<\/td>\n\t\t\t19.11<\/td>\n\t\t\t23.56<\/td>\n\t\t\t–<\/td>\n\t\t\t–<\/td>\n\t\t\t18.95<\/td>\n\t\t\t0.289<\/td>\n\t\t\t0.436<\/td>\n\t\t<\/tr>\n\t\t
IDFC Tax Advt(ELSS) Fund<\/a><\/td>\n\t\t\t4033.07<\/td>\n\t\t\t6.23<\/td>\n\t\t\t17.45<\/td>\n\t\t\t22.26<\/td>\n\t\t\t13.17<\/td>\n\t\t\t18.38<\/td>\n\t\t\t25.90<\/td>\n\t\t\t0.220<\/td>\n\t\t\t0.321<\/td>\n\t\t<\/tr>\n\t\t
PGIM India ELSS Tax Saver Fund<\/a><\/td>\n\t\t\t448.37<\/td>\n\t\t\t5.68<\/td>\n\t\t\t15.48<\/td>\n\t\t\t20.06<\/td>\n\t\t\t13.93<\/td>\n\t\t\t16.56<\/td>\n\t\t\t22.56<\/td>\n\t\t\t0.210<\/td>\n\t\t\t0.311<\/td>\n\t\t<\/tr>\n\t\t
Bank of India Tax Advantage Fund<\/a><\/td>\n\t\t\t679.27<\/td>\n\t\t\t4.84<\/td>\n\t\t\t13.53<\/td>\n\t\t\t19.26<\/td>\n\t\t\t13.99<\/td>\n\t\t\t18.41<\/td>\n\t\t\t21.45<\/td>\n\t\t\t0.218<\/td>\n\t\t\t0.334<\/td>\n\t\t<\/tr>\n\t\t
Mahindra Manulife ELSS Kar Bachat Yojana<\/a><\/td>\n\t\t\t521.45<\/td>\n\t\t\t6.31<\/td>\n\t\t\t15.28<\/td>\n\t\t\t18.91<\/td>\n\t\t\t12.21<\/td>\n\t\t\t–<\/td>\n\t\t\t22.23<\/td>\n\t\t\t0.199<\/td>\n\t\t\t0.296<\/td>\n\t\t<\/tr>\n\t\t
Mirae Asset Tax Saver Fund<\/a><\/td>\n\t\t\t14042.04<\/td>\n\t\t\t2.40<\/td>\n\t\t\t11.30<\/td>\n\t\t\t18.57<\/td>\n\t\t\t15.40<\/td>\n\t\t\t20.91<\/td>\n\t\t\t23.35<\/td>\n\t\t\t0.194<\/td>\n\t\t\t0.289<\/td>\n\t\t<\/tr>\n\t\t
SBI Long Term Equity Fund<\/a><\/td>\n\t\t\t12073.11<\/td>\n\t\t\t9.66<\/td>\n\t\t\t13.69<\/td>\n\t\t\t18.06<\/td>\n\t\t\t11.37<\/td>\n\t\t\t14.22<\/td>\n\t\t\t22.72<\/td>\n\t\t\t0.187<\/td>\n\t\t\t0.275<\/td>\n\t\t<\/tr>\n\t\t
Union Long Term Equity Fund<\/a><\/td>\n\t\t\t567.81<\/td>\n\t\t\t5.49<\/td>\n\t\t\t13.25<\/td>\n\t\t\t17.74<\/td>\n\t\t\t13.13<\/td>\n\t\t\t14.39<\/td>\n\t\t\t22.03<\/td>\n\t\t\t0.190<\/td>\n\t\t\t0.282<\/td>\n\t\t<\/tr>\n\t\t
Canara Rob Equity Tax Saver Fund<\/a><\/td>\n\t\t\t4576.02<\/td>\n\t\t\t2.79<\/td>\n\t\t\t11.03<\/td>\n\t\t\t17.52<\/td>\n\t\t\t15.89<\/td>\n\t\t\t17.62<\/td>\n\t\t\t21.52<\/td>\n\t\t\t0.202<\/td>\n\t\t\t0.303<\/td>\n\t\t<\/tr>\n\t\t
HDFC TaxSaver<\/a><\/td>\n\t\t\t9858.71<\/td>\n\t\t\t13.44<\/td>\n\t\t\t17.65<\/td>\n\t\t\t17.52<\/td>\n\t\t\t9.79<\/td>\n\t\t\t14.82<\/td>\n\t\t\t23.19<\/td>\n\t\t\t0.178<\/td>\n\t\t\t0.254<\/td>\n\t\t<\/tr>\n\t\t
Sundaram Tax Savings Fund(Adjusted)<\/a><\/td>\n\t\t\t950.01<\/td>\n\t\t\t4.04<\/td>\n\t\t\t12.24<\/td>\n\t\t\t17.21<\/td>\n\t\t\t10.09<\/td>\n\t\t\t14.95<\/td>\n\t\t\t23.23<\/td>\n\t\t\t0.173<\/td>\n\t\t\t0.254<\/td>\n\t\t<\/tr>\n\t\t
DSP Tax Saver Fund<\/a><\/td>\n\t\t\t10317.34<\/td>\n\t\t\t4.48<\/td>\n\t\t\t13.21<\/td>\n\t\t\t17.17<\/td>\n\t\t\t13.62<\/td>\n\t\t\t17.41<\/td>\n\t\t\t23.06<\/td>\n\t\t\t0.181<\/td>\n\t\t\t0.263<\/td>\n\t\t<\/tr>\n\t\t
Kotak Tax Saver Fund<\/a><\/td>\n\t\t\t3143.14<\/td>\n\t\t\t8.16<\/td>\n\t\t\t14.87<\/td>\n\t\t\t16.88<\/td>\n\t\t\t14.52<\/td>\n\t\t\t17.40<\/td>\n\t\t\t22.41<\/td>\n\t\t\t0.177<\/td>\n\t\t\t0.251<\/td>\n\t\t<\/tr>\n\t\t
Franklin India Taxshield<\/a><\/td>\n\t\t\t4690.67<\/td>\n\t\t\t4.62<\/td>\n\t\t\t12.72<\/td>\n\t\t\t16.24<\/td>\n\t\t\t11.49<\/td>\n\t\t\t13.74<\/td>\n\t\t\t24.91<\/td>\n\t\t\t0.163<\/td>\n\t\t\t0.239<\/td>\n\t\t<\/tr>\n\t\t
Quantum Tax Saving Fund<\/a><\/td>\n\t\t\t117.25<\/td>\n\t\t\t7.61<\/td>\n\t\t\t9.76<\/td>\n\t\t\t15.81<\/td>\n\t\t\t9.14<\/td>\n\t\t\t12.43<\/td>\n\t\t\t22.01<\/td>\n\t\t\t0.165<\/td>\n\t\t\t0.236<\/td>\n\t\t<\/tr>\n\t\t
ICICI Pru LT Equity Fund (Tax Saving)<\/a><\/td>\n\t\t\t9991.91<\/td>\n\t\t\t2.47<\/td>\n\t\t\t11.09<\/td>\n\t\t\t15.66<\/td>\n\t\t\t12.11<\/td>\n\t\t\t14.69<\/td>\n\t\t\t23.18<\/td>\n\t\t\t0.161<\/td>\n\t\t\t0.234<\/td>\n\t\t<\/tr>\n\t\t
Tata India Tax Savings Fund<\/a><\/td>\n\t\t\t3111.73<\/td>\n\t\t\t6.27<\/td>\n\t\t\t11.65<\/td>\n\t\t\t15.59<\/td>\n\t\t\t12.41<\/td>\n\t\t\t16.55<\/td>\n\t\t\t23.02<\/td>\n\t\t\t0.164<\/td>\n\t\t\t0.241<\/td>\n\t\t<\/tr>\n\t\t
JM Tax Gain Fund<\/a><\/td>\n\t\t\t70.24<\/td>\n\t\t\t3.81<\/td>\n\t\t\t11.43<\/td>\n\t\t\t15.35<\/td>\n\t\t\t13.30<\/td>\n\t\t\t17.45<\/td>\n\t\t\t23.94<\/td>\n\t\t\t0.158<\/td>\n\t\t\t0.235<\/td>\n\t\t<\/tr>\n\t\t
UTI LT Equity Fund (Tax Saving)<\/a><\/td>\n\t\t\t2826.05<\/td>\n\t\t\t-0.46<\/td>\n\t\t\t9.02<\/td>\n\t\t\t14.42<\/td>\n\t\t\t11.38<\/td>\n\t\t\t14.35<\/td>\n\t\t\t22.85<\/td>\n\t\t\t0.150<\/td>\n\t\t\t0.220<\/td>\n\t\t<\/tr>\n\t\t
Edelweiss Long Term Equity Fund (Tax Savings)<\/a><\/td>\n\t\t\t207.88<\/td>\n\t\t\t4.16<\/td>\n\t\t\t10.95<\/td>\n\t\t\t14.25<\/td>\n\t\t\t10.61<\/td>\n\t\t\t13.94<\/td>\n\t\t\t22.50<\/td>\n\t\t\t0.152<\/td>\n\t\t\t0.217<\/td>\n\t\t<\/tr>\n\t\t
Nippon India Tax Saver (ELSS) Fund<\/a><\/td>\n\t\t\t11546.41<\/td>\n\t\t\t4.75<\/td>\n\t\t\t13.79<\/td>\n\t\t\t14.19<\/td>\n\t\t\t5.35<\/td>\n\t\t\t11.44<\/td>\n\t\t\t24.69<\/td>\n\t\t\t0.139<\/td>\n\t\t\t0.197<\/td>\n\t\t<\/tr>\n\t\t
Taurus Tax Shield Fund<\/a><\/td>\n\t\t\t59.47<\/td>\n\t\t\t9.44<\/td>\n\t\t\t11.57<\/td>\n\t\t\t13.34<\/td>\n\t\t\t10.65<\/td>\n\t\t\t15.36<\/td>\n\t\t\t20.72<\/td>\n\t\t\t0.144<\/td>\n\t\t\t0.202<\/td>\n\t\t<\/tr>\n\t\t
Motilal Oswal Long Term Equity Fund<\/a><\/td>\n\t\t\t2193.45<\/td>\n\t\t\t5.72<\/td>\n\t\t\t11.80<\/td>\n\t\t\t13.14<\/td>\n\t\t\t10.41<\/td>\n\t\t\t17.01<\/td>\n\t\t\t23.93<\/td>\n\t\t\t0.132<\/td>\n\t\t\t0.189<\/td>\n\t\t<\/tr>\n\t\t
HSBC ELSS Fund<\/a><\/td>\n\t\t\t3036.19<\/td>\n\t\t\t3.64<\/td>\n\t\t\t9.82<\/td>\n\t\t\t12.65<\/td>\n\t\t\t8.15<\/td>\n\t\t\t13.89<\/td>\n\t\t\t23.04<\/td>\n\t\t\t0.124<\/td>\n\t\t\t0.173<\/td>\n\t\t<\/tr>\n\t\t
Shriram Long Term Equity Fund<\/a><\/td>\n\t\t\t37.00<\/td>\n\t\t\t3.20<\/td>\n\t\t\t9.06<\/td>\n\t\t\t12.34<\/td>\n\t\t\t–<\/td>\n\t\t\t–<\/td>\n\t\t\t19.19<\/td>\n\t\t\t0.133<\/td>\n\t\t\t0.202<\/td>\n\t\t<\/tr>\n\t\t
IDBI Equity Advantage Fund<\/a><\/td>\n\t\t\t461.40<\/td>\n\t\t\t4.39<\/td>\n\t\t\t10.85<\/td>\n\t\t\t12.23<\/td>\n\t\t\t9.72<\/td>\n\t\t\t12.73<\/td>\n\t\t\t20.01<\/td>\n\t\t\t0.120<\/td>\n\t\t\t0.183<\/td>\n\t\t<\/tr>\n\t\t
ITI Long Term Equity Fund<\/a><\/td>\n\t\t\t155.60<\/td>\n\t\t\t6.17<\/td>\n\t\t\t6.98<\/td>\n\t\t\t12.06<\/td>\n\t\t\t–<\/td>\n\t\t\t–<\/td>\n\t\t\t23.18<\/td>\n\t\t\t0.115<\/td>\n\t\t\t0.166<\/td>\n\t\t<\/tr>\n\t\t
Indiabulls Tax Savings Fund<\/a><\/td>\n\t\t\t37.54<\/td>\n\t\t\t3.48<\/td>\n\t\t\t9.17<\/td>\n\t\t\t12.04<\/td>\n\t\t\t8.17<\/td>\n\t\t\t–<\/td>\n\t\t\t20.85<\/td>\n\t\t\t0.127<\/td>\n\t\t\t0.185<\/td>\n\t\t<\/tr>\n\t\t
Invesco India Tax Plan<\/a><\/td>\n\t\t\t1830.45<\/td>\n\t\t\t-3.22<\/td>\n\t\t\t7.03<\/td>\n\t\t\t11.89<\/td>\n\t\t\t11.40<\/td>\n\t\t\t15.25<\/td>\n\t\t\t22.46<\/td>\n\t\t\t0.127<\/td>\n\t\t\t0.184<\/td>\n\t\t<\/tr>\n\t\t
Navi ELSS Tax Saver Fund<\/a><\/td>\n\t\t\t58.58<\/td>\n\t\t\t2.72<\/td>\n\t\t\t9.44<\/td>\n\t\t\t11.79<\/td>\n\t\t\t10.65<\/td>\n\t\t\t13.67<\/td>\n\t\t\t23.04<\/td>\n\t\t\t0.120<\/td>\n\t\t\t0.168<\/td>\n\t\t<\/tr>\n\t\t
Baroda BNP Paribas ELSS Fund<\/a><\/td>\n\t\t\t661.38<\/td>\n\t\t\t-0.76<\/td>\n\t\t\t6.96<\/td>\n\t\t\t11.63<\/td>\n\t\t\t10.76<\/td>\n\t\t\t13.00<\/td>\n\t\t\t20.32<\/td>\n\t\t\t0.122<\/td>\n\t\t\t0.178<\/td>\n\t\t<\/tr>\n\t\t
LIC MF Tax Plan<\/a><\/td>\n\t\t\t396.44<\/td>\n\t\t\t1.80<\/td>\n\t\t\t10.51<\/td>\n\t\t\t10.33<\/td>\n\t\t\t10.38<\/td>\n\t\t\t14.52<\/td>\n\t\t\t21.72<\/td>\n\t\t\t0.102<\/td>\n\t\t\t0.143<\/td>\n\t\t<\/tr>\n\t\t
Axis Long Term Equity Fund<\/a><\/td>\n\t\t\t28864.74<\/td>\n\t\t\t-7.01<\/td>\n\t\t\t1.48<\/td>\n\t\t\t7.63<\/td>\n\t\t\t10.40<\/td>\n\t\t\t13.44<\/td>\n\t\t\t22.93<\/td>\n\t\t\t0.065<\/td>\n\t\t\t0.099<\/td>\n\t\t<\/tr>\n\t\t
Aditya Birla SL Tax Relief '96<\/a><\/td>\n\t\t\t13121.07<\/td>\n\t\t\t-0.07<\/td>\n\t\t\t1.67<\/td>\n\t\t\t7.16<\/td>\n\t\t\t6.28<\/td>\n\t\t\t11.67<\/td>\n\t\t\t20.61<\/td>\n\t\t\t0.063<\/td>\n\t\t\t0.092<\/td>\n\t\t<\/tr>\n\t\t
Return Generated by Top Performer<\/td>\n\t\t\t–<\/td>\n\t\t\t13.44<\/td>\n\t\t\t24.47<\/td>\n\t\t\t35.41<\/td>\n\t\t\t21.93<\/td>\n\t\t\t23.68<\/td>\n\t\t\t–<\/td>\n\t\t\t–<\/td>\n\t\t\t–<\/td>\n\t\t<\/tr>\n\t\t
Return Generated by Bottom Performer<\/td>\n\t\t\t–<\/td>\n\t\t\t-7.01<\/td>\n\t\t\t1.48<\/td>\n\t\t\t7.16<\/td>\n\t\t\t5.35<\/td>\n\t\t\t11.44<\/td>\n\t\t\t–<\/td>\n\t\t\t–<\/td>\n\t\t\t–<\/td>\n\t\t<\/tr>\n\t\t
Category Average<\/td>\n\t\t\t–<\/td>\n\t\t\t4.32<\/td>\n\t\t\t11.69<\/td>\n\t\t\t15.71<\/td>\n\t\t\t11.62<\/td>\n\t\t\t15.46<\/td>\n\t\t\t22.53<\/td>\n\t\t\t0.16<\/td>\n\t\t\t0.24<\/td>\n\t\t<\/tr>\n\t\t
Category Benchmark:<\/td>\n\t\t\t<\/td>\n\t\t\t<\/td>\n\t\t\t<\/td>\n\t\t\t<\/td>\n\t\t\t<\/td>\n\t\t\t<\/td>\n\t\t\t<\/td>\n\t\t\t<\/td>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t
NIFTY 50 – TRI<\/td>\n\t\t\t–<\/td>\n\t\t\t4.56<\/td>\n\t\t\t10.48<\/td>\n\t\t\t15.25<\/td>\n\t\t\t12.87<\/td>\n\t\t\t15.26<\/td>\n\t\t\t22.900<\/td>\n\t\t\t0.158<\/td>\n\t\t\t0.232<\/td>\n\t\t<\/tr>\n\t\t
NIFTY 500 – TRI<\/td>\n\t\t\t–<\/td>\n\t\t\t2.69<\/td>\n\t\t\t10.81<\/td>\n\t\t\t15.73<\/td>\n\t\t\t11.56<\/td>\n\t\t\t15.26<\/td>\n\t\t\t23.418<\/td>\n\t\t\t0.163<\/td>\n\t\t\t0.239<\/td>\n\t\t<\/tr>\n\t\t
S&P BSE 200 – TRI<\/td>\n\t\t\t–<\/td>\n\t\t\t3.20<\/td>\n\t\t\t10.49<\/td>\n\t\t\t15.66<\/td>\n\t\t\t12.24<\/td>\n\t\t\t15.45<\/td>\n\t\t\t23.125<\/td>\n\t\t\t0.163<\/td>\n\t\t\t0.242<\/td>\n\t\t<\/tr>\n\t\t
S&P BSE 500 – TRI<\/td>\n\t\t\t–<\/td>\n\t\t\t3.02<\/td>\n\t\t\t11.01<\/td>\n\t\t\t16.11<\/td>\n\t\t\t11.82<\/td>\n\t\t\t15.48<\/td>\n\t\t\t23.411<\/td>\n\t\t\t0.167<\/td>\n\t\t\t0.246<\/td>\n\t\t<\/tr>\n\t\t
S&P BSE SENSEX – TRI<\/td>\n\t\t\t–<\/td>\n\t\t\t6.31<\/td>\n\t\t\t10.51<\/td>\n\t\t\t15.18<\/td>\n\t\t\t13.82<\/td>\n\t\t\t15.79<\/td>\n\t\t\t22.886<\/td>\n\t\t\t0.157<\/td>\n\t\t\t0.232<\/td>\n\t\t<\/tr>\n\t<\/tbody>\n<\/table>\n<\/div>\n<\/center>\n\n\n\n

Data as of February 20, 2023.
Returns are Point to Point and in %, calculated using the Direct Plan-Growth option.Std. Dev and Sharpe Ratio are calculated over a 3-Yr period assuming a risk-free rate of 6% p.a.Past performance is not an indicator of future returns.*Please note, this table only represents the best-performing schemes based solely on past returns and is NOT recommendations as such. Speak to your investment advisor for further assistance before investing.Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully.
\u200b(Source: ACE MF, PersonalFN Research) <\/p>\n\n\n\n

How to select the best ELSS for the tax-saving portfolio?<\/em><\/strong><\/p>\n\n\n\n

Closely evaluate a host of quantitative and qualitative aspects of ELSS (or tax-saving mutual funds), such as…<\/p>\n\n\n\n

  • Past performance across various time frames (6-months, 1-year, 2-year, 3-year, 5-year, 10-year, since inception)<\/li>
  • The performance across market phases (bull and bears)<\/li>
  • The level of risk it exposes its investors (as denoted by the standard deviation)<\/li>
  • The risk-adjusted returns clocked (as reflected by the Sharpe and Sortino Ratio)<\/li>
  • The expense ratio (as it weighs on the returns you make)<\/li>
  • The portfolio characteristics (such as the top-10 holdings, top-5 sector exposure, how concentrated\/diversified is the portfolio, the market capitalisation bias, portfolio turnover, etc.)<\/li>
  • The credentials of the fund management team (i.e., the experience of the fund manager, the number of schemes he\/she manages, the track record of the mutual fund schemes under his\/her watch, the experience of the research team)<\/li>
  • The proportion of AUM of the fund house actually performing (to check the efficiency of the fund house and whether it is an asset manager or a mere asset gatherer)<\/li>
  • And on the whole, the investment process & systems are followed at the fund house.<\/li><\/ul>\n\n\n\n
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