Top 10 ELSS FUNDS
A mutual fund is a professionally managed investment scheme, usually run by an asset management company that brings together a group of people and invests their money in stocks, bonds and other securities. There are many types of mutual funds, an investor can choose from. One of the very popular amongst the different types of Mutual Funds is the ELSS Scheme or the Equity Linked Savings Scheme. These are tax-saving mutual funds that you can use to save income tax of up to ₹ 1.5 lakh under Section 80C. ELSS funds have a lock-in period of 3 years and invest a majority of their portfolio in the stock market. A designated Investor awareness program, under the ‘Mutual Funds Sahi Hai’ activity has invoked a positive response amongst many investors.
Being one of the popular Mutual fund models, The ELSS scheme also gives the investor and opportunity to choose from the best performing investment companies. Let’s take a broader look at each one of them, falling under the top 10 bracket.
- Axis long Term Equity Funds
Axis Long Term Equity Fund is an ELSS (equity-linked savings scheme) fund managed by the AMC Axis Mutual Funds. It provides subscribers with tax savings benefits under section 80C of the IT Act 1961.
With a lock in period of 3 years, The Axis Long Term Equity Scheme is an open ended equity-linked savings scheme. The Axis Long Term Equity Fund Direct Growth Plan aims to generate income and long term capital growth across groups consisting of equity and equity related securities.
Since its inception, way back in the year 2009, The Axis Long Term Equity Fund ELSS has many beneficial schemes for a potential investor which Include, Growth, Direct Growth, Dividend and Direct Dividend. The Axis Long Term Equity Fund Program has the flexibility to invest across large, medium and small cap companies as well as across industries or sectors. The selected companies are approved by the fund management team after a thorough evaluation.
The Fund Manager for Axis Long term Equity Scheme is Mr.Jignesh Gopani, who has been managing the scheme for more than six years and continues to focus on good-quality companies.
Online Transactions have been an enriching experience for investors. The Axis Long Term Mutual Fund online application process is simplified and user friendly.
- The investor can either use his Axis Mobile App or Axis internet banking facility for this purpose.
- Visit the Mutual Funds section on the axis bank website, axisbank.com
- Click on the ‘five top mutual funds’ button, to get a glimpse of the top five performing mutual funds.
- .The investor can also search for the specific funds as per his requirement
- Click on the option, ‘Register Online’
- Fill in details like Customer Id, PAN and Date of Birth and click on ‘Proceed’
- Confirm Mobile Number and E-mail id
- Enter the OTP (One Time Password) received on the mobile and confirm the same to complete verification
- Enter the KYC and save it.
- Update Risk profile
- Enter the Internet Banking password and select the type of account to be linked for online transactions.
- Confirm the Terms and Conditions and click on submit.
The Axis Long Term Equity Fund Net Asset Value (NAV) as of today stands at,
With a lock period of 3 years and eligibility for tax exemptions under Sec 80 C, the Axis Long Term Equity Fund Returns helps in save taxes upto Rs 45,000 per year.
|period||returns||Benchmark returns (%)|
|5 Year||23.48||– 4.7|
CRISIL Rank: CRISIL, a key body that ranks mutual funds as per its unique set of parameters has consistently ranked AXIS Long Term Equity Fund in the 1st and 2nd category indicating a high level of performance.
An Indian citizen resident who has attained 18 years of age has a valid PAN card can apply for this investment scheme as long as all the SEBI-mandated KYC criteria have been met. The minimum investment amount at any time is Rs. 500 whether done as a lump sum or through a SIP (systematic investment plan). Additional purchases above Rs. 500 can be made in multiples of Rs. 500 each.
The latest Axis Long Term Equity Fund Portfolio released as on March 31st, 2018 shows signs of steady progress as the table below indicate.
|Kotak Mahindra Bank||Financial||6.63|
|Tata Consultancy Services||Technology||5.43|
|Maruti Suzuki India||Automobile||5.17|
|Motherson Sumi Systems||Automobile||3.60|
The Axis Long Term Equity Scheme is capable of investing in a wide range of companies across multiple investment segmen
- Franklin India Tax Shield
Franklin Resources, Inc., widely known as Franklin Templeton investments is a global investment management organization. It is a single firm housing world class investment teams backed by one of the world’s largest investment managers. The aim of the company is to deliver first-rate asset management to its customers.
Franklin Templeton began its association with India with the establishment of its India’s office called Templeton Asset Management. Franklin India Tax Shield falls under the category of ‘Equity Linked Savings Scheme’ (ELSS).
With a lock in period of 3 years, Franklin Templeton ELSS offers its investors a tax deduction for an investment of upto Rs 1.5 lakhs under Sec 80 C of Income tax Act 1961. Franklin India Tax Shield aims to provide long term capital growth by maintaining a diversified portfolio of companies across different sizes and sectors with income tax rebates.The scheme invests in equities and there is an exposure to PSU Bonds and debentures and Money Market instruments.
As OF 31ST March, 2018, Franklin India Tax Shield portfolio picture with the Top 10 Holding companies is as follows.
|Kotak Mahindra Bank||Financial||7.45|
|Axis Bank Limited||Financial||5.74|
|Mahindra and Mahindra Ltd.||Automobile||4.70|
|Hindalco Industries Ltd.||Metals||3.62|
|Power Grid Corporation Of India||Energy||3.22|
|Indian Oil Corporation Ltd.||Energy||3.15|
|Yes Bank Ltd||Financial||2.99|
|State Bank Of India||Financial||2.55|
The Franklin India Tax Shield Net Asset Value (NAV) as of today stands at,
The Franklin Tax Saver Fund has significant advantages over its competitors. Here’s why it is preferred.
- The investor’s interest is protected.
- Finds shares that are hidden but have the potential to become valuable.
- Currently, undervalued discounted stocks are phased out to reduce risk.
- Finds funds with low volatility.
- Investors can save on taxes with schemes like Franklin India Tax Shield as section 80C of Income Tax Act, 1961 gives options for saving tax by reducing taxable income.
The Fund Managers for Franklin India Tax Shield areMr.Lakshmikanth Reddy and Mr.R. Janakiraman.
The Franklin India Tax Shield ELSS is ranked 4th amongst the most preferred by CRISIL.
Ever since its inception in April 10, 1999, The Franklin India Tax Shield has generated. A Compound Annual Growth Rate (CAGR)of 24%. CAGR shows how much a person’s investment grew in one year. In other words, it is the average returns an investor has earned on the investments after one year. It primarily invests in stocks with attractive valuations and strong growth prospects. This has allowed the fund to deal well with market crashes and outpace most peer funds during bull phases. With 80% of its investments in giant and large-cap companies, it is well placed to contain the losses from possible market corrections.
The Franklin Templeton ELSS falls under the category of a Tax Saving Mutual Fund Scheme. As such, the Franklin India Tax Shield offers Tax under section 80 C. There are certain attractive benefits on investing in a Tax Saver scheme. To quote a few,
- The first and most obvious benefit is that the investments are eligible for tax benefits up to Rs. 1.5 lakhs.
- Long term capital gains are not taxed.
- These funds serve as a platform for future expenses, an individual could anticipate, like buying a car, house etc.
- These plans allow investors to invest on a monthly basis via an SIP (Systematic Investment Plan) thereby negating the need to invest in one go.
- The funds are not invested in one place to minimize the risk of massive losses.
- This being an open-ended investment scheme, the investments can be made all year around.
- Another major highlight of the Franklin Tax Payer Fund is that it allows the flexibility to withdraw the dividend, applicable on the investments, even during the lock in period of 3 years.
Franklin India Tax Shield is a safe bet for any investor with a diversified investment program.
- DSP Blackrock Tax Saver’s Fund
The DSP Black Rock mutual funds are managed by DSP Black Rock Investment Managers. This is an asset management company which is a joint venture between the DSP Group and Black Rock. The 145 Year old DSP group is one of the earliest business groups to have begun in the country. On the other hand, Black Rock is the largest listed asset management company in the world which provides asset management and investment services to customers across 26 countries.
Earlier known as DSP Merrill Lynch mutual fund, the DSP Blackrock Tax saver’s fund has many schemes, some of which are considered the best mutual fund schemes in the financial industry The DSP Blackrock funds scheme is known to churn our Customer centric and beneficial schemes for a long time.
The DSP Blackrock Tax Saver’s fund is ably managed by Mr. Vinit Sambre, Mr. Resham Jain and Mr. Jay Kothari, as fund managers.
Launched in the year 2006 and listed under the ELSS investment schemes, the DSP Blackrock small and midcap fund, under the DSP Blackrock fund management scheme has outperformed both, the category average and benchmarkindex, by a fair margin where, a fund categorization or category average refers to differentiating the mutual funds according to their investment objectives and principal investment featuresand benchmark index refers to the standard on which the performance of the mutual fund is measured.
As OF 31ST March, 2018, The DSP Blackrock Equity Fund portfolio picture with the Top 10 Holding companies is as follows.
|Marurthi Suzuki Ltd.||Automobilel||7.45|
|Reliance Industries Ltd||Engineering||4.70|
|Hindalco Industries Ltd.||Metals||3.62|
|Indusind Bank Ltd.||Financial||3.22|
|ICICI Bank Ltd.||Financial||3.15|
|Tata Steel Ltd.||Steel||2.99|
|Coromandel International Ltd.||Technology||2.85|
The DSP Blackrock Equity Fund Net Asset Value (NAV) as of today stands at,
The DSP Blackrock Tax Saver’s Fund scheme seeks to generate medium to long-term capital appreciation from a diversified portfolio, ably inclusive of equity and equity related securities of corporate and to enable investors to avail of tax exemptions applicable under section 80 C of the income tax act.
The DSP Blackrock Tax saver’s scheme is preferred over the other schemes due to its significant advantages as listed below..
- Multiple choice of schemes available
- It connects to audience all over the globe.
- Dedicated, strong and experienced team of experts to guide investors
- Strong risk management
- Investors can register online to purchase this scheme.
The DSP Blackrock Invest Online facility has improved the user’s experience in investing online. Few simple steps to be followed,
- Visit the DSP Blackrock website , dspblackrock.com
- Choose existing or open new portfolio
- Select the names of the scheme to invest
- Select the payment mode; pay online or via debit card
- Review transaction and make payment.
The DSP Blackrock Tax Payer’s fund is a convincing reply to an investor’s doubts on which would be the best invest schemes to choose from.
- Reliance Tax Saver’s Fund
Reliance Tax Saver Fund is an open-ended equity-linked savings scheme. Since its inception in the year, 2005, the primary aim of Reliance Tax Saver’s Fund is to generate long-term capital growth by investment in equity and equity-related schemes.
The Fund Manager for Axis Long term Equity Scheme is Mr. Ashwini Kumar., who has been managing the scheme since the last 10 years and continues to focus on good-quality companies.
The Reliance Long Term Equity Fund Net Asset Value (NAV) as of today stands at,
The latest Reliance ELSS portfolio released as on March 31st, 2018 shows signs of steady progress as the table below indicate
|State Bank of India||Financial||7.71|
|TVS Motor Co.||Automobile||6.60|
|SBI Life Insurance Company||Financial||2.. 81|
The Reliance ELSS has the following advantages which makes it a good choice.CRISIL Rank: CRISIL, a key body that ranks mutual funds as per its unique set of parameters has consistently ranked Reliance Tax Saver Fund Long Term Equity Fund as No.3 indicating a high level of performance.
- It is a transparent and safe investment scheme
- Investors face minimal risks
- There are no complicated formalities to be fulfilled while investing
- Allows investors to save money on capital gains tax investments
- No maximum limit for investments.
Reliance Tax Saver Mutual Fund is based on the following investment strategy .
- Balanced Investment in both mid cap and large cap stocks
- Aims to invest in future potential leaders
- Aims to invest in companies with potential of high growth in a 2-3 years period
- Significant percentage of fund deals with investment in stocks of mid-cap companies
- Multinational companies also form a significant chunk of this fund’s investment
- Allocation in themes like domestic, consumption and defensive in order to have a balanced portfolio at macro level
The process of signing up for the Reliance Tax Saver Plan makes the Reliance ELSS scheme, a sought after scheme. Applications get processed almost instantly and those who are accepted to be investors in the Reliance Tax Saver Plan are provided with log in details using which they can access their ELSS Fund account at any time of the day.
- ICICI Prudential Long Term
The ICICI Prudential Long Term Equity Fund Scheme is an open-ended equity-linked savings scheme. The objective of this fund is to build wealth over a longer period through a diverse portfolio. The investments done through this fund go for the buy and hold approach. The investments can also be made in large cap companies that have a good overall track record in terms of growth and quality. The investment horizon is atleast for a period of 5 years.
The Fund Manager for the ICICI ELSS Tax saver is Mr. Manish Goswami.,
The ICICI Long Term Equity Fund Net Asset Value (NAV) as of today stands at,
The latest ICICI Tax saver portfolio released as on March 31st, 2018 shows signs of steady progress as the table below indicate.
|Nestle||Food & Beverage||4.28|
|Dabur India||Cons NonDurable||3.17|
It is a transparent and safe investment scheme.The ICICI Long Term Plan growth has the following advantages which makes it a good choice.
- Less risks
- No maximum limit for investments.
- Convenient Lock in period of 3 years.
The investment philosophy of the ICICI ELSS gives the fund manager all freedom to select stocks from any sector.
The consistent performance of ICICI Prudential Long Term Plan makes it a good investment option for long term debt investors. To take full advantage of interest rate cycle and the tax advantage of debt mutual funds, investors should have at least a 3 year horizon for investing in the fund. Investors should consult with their financial advisors if ICICI Prudential Long Term Plan is suitable for their financial needs.
- Birla Sun life Tax Relief 96
The Birla Sun Life Tax Relief 96 is an open ended Equity Linked Savings Scheme (ELSS) .The Birla Sun Life ELSS has a lock-in of 3 years from the date of allotment. The BSL Tax Relief ELSS was formed in 1994 as a joint venture between the Aditya Birla Group, the largest business corporation in India, and the Canadian Sun Life Financial Company. Birla Sun Life Mutual Funds’ investments are operated by Birla Sun Life Asset Management Co. Ltd.
The Fund Manager for the ICICI ELSS Tax saver is Mr. Ajit Garg
The Birla Sun Life Tax Relief 96 Fund Net Asset Value (NAV) as of today stands at,
The latest Birla Sun Life ELSS portfolio released as on March 31st, 2018 shows signs of steady progress as the table below indicate.
|Tata Steel||Metals & Mining||3.24|
|Vedanta||Metals & Mining||2.96|
|Dabur India||Cons NonDurable||2.48|
Well qualified analysts to guide investors on their investment choices.The Birla Sun Life Tax Relief 96 Growth scheme has the following advantages which makes it a good choice.
- Laid down Rules and Regulations are not compromised at any cost with respect to investors safety
- The BSL tax saver scheme offers a well laid out tax saving structure to its investors.
- A perfect choice for investors looking at a fixed income
The Birla Sun Life Tax Relief 96 Mutual Fund offers a custom built approach to the investors along with a good return on investment. With a team of professional experts and a wide range of fund options to invest in, Birla Sun Life Mutual Fund efficiently fulfills the investment expectations of the investors.
- INVESCO India Plan
Religare Invesco Mutual Fund is a financial company with an average asset base of over Rs.21,009 crores. It is one of the best asset management companies in India. The company offers mutual funds to both domestic and global investors including individuals, corporates and institutions.
The Religare Invesco Mutual Fund Company is managed by individually focused management teams, and it provides excellent financial care and best-in-class services. Investing in mutual funds offered by Religare Invesco Asset Management Company, investors can expect stable and consistent returns on their investments with low risk involved.
Invesco Investments an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life.
The Fund Manager for Invesco India Tax Plan is Mr. Vinay Paharia.
The Invesco India Tax Plan direct growth Net Asset Value (NAV) as of today stands at,
The Invesco India Tax Plan portfolio released as on March 31st, 2018 shows signs of steady progress as the table below indicate.
|Reliance||Oil & Gas||7.26|
|United Spirits||Food & Beverage||3.90|
Tax savings.The Invesco India Tax Savings Scheme has the following advantages which makes it a preferred choice.
- Wealth Creation
- Global Presence
- Long Term capital appreciation
Investing in mutual funds offered by Religare Invesco Asset Management Company, investors can expect stable and consistent returns on their investments with low risk involved
- Principal Tax Savings Fund
The Principal Financial Group (The Principal) was established in 1879 as one of the world’s major financial investment management companies. With a global presence spread across 18 countries, the Principal offers a wide range of financial products and services to both companies and individuals including asset management, retirement and insurance benefit schemes.
The Principal Tax savings fund aims to focus on small, medium-sized firms in addition to global asset management through joint venture partnerships and wholly owned companies. From equity and fixed income to real estate, the Principal provides several specialized advisory services. The Principal Financial Group also offers vision, life and dental insurance.
.The Fund Manager for the ICICI ELSS Tax saver is Mr. P.V.K.Mohan.
The Principal personal tax saver fund Net Asset Value (NAV) as of today stands at,
The Principal Personal Tax Saver portfolioreleased as on March 31st, 2018 shows
|Reliance||Oil & Gas||2.95|
|Bajaj Electric||Cons Durable||2.50|
The Principal Personal Tax Saver Fund offers long term capital growth with a three year lock-in period.The Principal Tax Savings Plan growth has the following advantages which makes it a good choice.
- Iinvestors can avail of tax deduction of up to Rs 1 lakh as per section 80c of Income Tax Act, 1961.
- In addition to delivering good returns with consistent value creation, principal mutual fund offers corporate and individuals a wide range of structured options.
- Principal Mutual Fund has over 20,000 distributors across the country including financial advisors partnership firms, corporate, banks, stockbrokers and financial institutions.
- Investors can transfer their money to a target equity fund while investing in a debt or liquid fund. Consequently, you will get returns of the equity fund and ensure protection as well.
- Publishes a monthly factsheet which shows details of amount invested in each company and the rating of the company’s issuance, returns, dividends and performance ratios.
Principal Mutual Fund has over 20,000 distributors across the country including financial advisors partnership firms, corporates, banks, stockbrokers an financial institutions and provides value addition owing to its expertise in several areas including client education, asset accumulation and customer service among others.
- Tata India Tax Saving Fund
Tata India Tax Saving Fund has earned the trust of their investors with consistent performance and long term results aiming at the overall excellence. The Tata India Savings Fund is a Direct Plan while being transparent and taking rigorous risk control methods. Consistent results are maintained through the value based investing methods. Tata Mutual Fund offers operational flexibility to cater to the specific needs of the customers.
.The Fund Manager for the Tata Tax Saving fundis Mr. Rupesh Patel.
The Tata India Regular plan savings fund growth Net Asset Value (NAV) as of today stands at,
The Tata India Savings plan portfolioreleased as on March 31st, 2018 shows
|Reliance||Oil & Gas||3.48|
|Avenue Supermar||Retail & Real Estate||2.09|
|Future Retail||Retail & Real Estate||1.96|
The brand Tata says it all in the entire country and enjoys high equity.The Tata Tax Saver Fund has the following advantages.
- The combination of expertise and brilliance in fund management, service and trust makes it appealing to investors.
- Investors get high returns.
- Tthough they take higher risk, they can be at peace knowing that the funds won’t be mismanaged.
- Can avail tax benefits under Section 80 C of Income Tax Act.
The Tata Tax Savings Plan, under the Tata Group has almost two-thirds of the equity in trusts which hosts institutions such as natural sciences, medical care, energy and arts. The trust grants endowment to individuals in areas of healthcare, education and social uplift.
- IDFC Tax Advantage
Since its inception in 1997, IDFC or Infrastructure Development Finance Company is one of the major infrastructure finance players in India. IDFC provides finance and advisory services in the domains of alternative asset management (private equity, infrastructure, real estate), public market asset management (mutual fund), infrastructure projects and corporate investment banking.
The Fund Manager for the IDFC Tax Advantage scheme is Mr. Anirudh Naha.
The IDFC Tax Advantage Fund growth Net Asset Value (NAV) as of today stands at,
The IDFC Tax Advantage portfolioreleased as on March 31st, 2018 shows
|Future Retail||Retail & Real Estate||2.76|
|GAIL||Oil & Gas||1.61|
The IDFC Tax Saving Fund Plan not only helps save taxes but also provides some good returns as in Equity Linked Savings Schemes (ELSS).The IDFC Tax Saver Fund has the Following Advantages.
- IDFC tax advantage (ELSS) helps investors save up to Rs.1, 50,000 on taxes.
- Investments made in ELSS plans are entitled for tax deduction under section 80C of the Income Tax Act.
- IDFC offers a user-friendly online transaction process which helps investors track, switch or redeem their investment without any hassles.
IDFC AMC attempts to ensure growth of assets through several measures including directing corporate and private savings into equity and debt markets.
Having had a fair idea of the top 10 performing companies offering ELSS schemes, let’s answer some Frequently Asked Questions on investment schemes, by the investor
Q: What is a Mutual Fund?
A:: A mutual fund is a professionally managed investment scheme, usually run by an asset management company that brings together a group of people and invests their money in stocks, bonds and other securities.
Q: What are the different types of Mutual Funds Available?
A: There are seven common types of Mutual Funds available in India. They are,
- Money Market Funds
- Fixed income funds.
- Equity funds
- Balanced funds.
- Index funds.
- Specialty funds
- Fund –of- Funds
Q:How can I invest in Mutual Funds Available?
A: You can invest into Mutual Funds through Banks.
Q:What do you understand by ELSS?
A: ELSS refers to Equity Linked Savings Scheme
Q:What is NAV?
A: Net Asset Value, or NAV, is the sum total of the market value of all the shares held in the portfolio including cash, less the liabilities, divided by the total number of units outstanding.
Q: What is SIP?
A: A Systematic Investment Plan or SIP is a smart and hassle free mode for investing money in mutual funds. SIP allows you to invest a certain pre-determined amount at a regular interval (weekly, monthly, quarterly, etc.)
Q: Does SIP allow Tax Benefit?
A: No. Unfortunately SIP does not allow tax benefits.
Q: What is STP?
A:STP refers to Systematic Transfer Plan where in an investor invests a lump sum amount in one scheme and regularly transfers (i.e. switches) a pre-defined amount into another scheme
Q: What is SWP?
A;Systematic Withdrawal Plan (SWP) is a service offered by mutual funds which provides investors with a specific amount of payout at a pre-determined time intervals, like monthly, quarterly, half-yearly or annually.
Q: What is the minimum lock in period for an ELSS investment?
A: The minimum lock in period in most of the ELSS schemes is 3 years.
Q: What do you mean by Portfolio?
A: A portfoliois a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds.
Q: Who is a Fund Manager?
A: A fund manageris responsible for implementing a fund’sinvesting strategy and managing its portfoliotrading activities
Why Buy Mutual Funds? Here’s why,