Aditya Birla SL ELSS Tax Saver Fund offered 13.67% returns in the last three years against 20% by its benchmark (NIFTY 500 – TRI). Canara Rob ELSS Tax Saver also failed to outperform its benchmark.
The scheme delivered 17.06% returns compared to 19.99% by its benchmark (BSE 500 – TRI).
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Axis ELSS Tax Saver Fund, the largest fund in the category based on assets managed, failed to beat its benchmark. The scheme gave 10.80% returns in the last three years against 20% by its benchmark (NIFTY 500 – TRI). The scheme manages assets worth Rs 38,278 crore as of July 2024.Mahindra Manulife ELSS Tax Saver Fund offered a 17.84% return in the last three years against 20% by the benchmark (NIFTY 500 – TRI). Union ELSS Tax Saver Fund delivered 18.26% returns in the period against 19.99% by its benchmark. Navi ELSS Tax Saver Fund and PGIM India ELSS Tax Saver Fund offered 16.22% and 16.43% returns, respectively, in the last three years. The schemes are benchmarked against NIFTY 500 – TRI, which gave a 20% return in the period.
Outperformers
SBI Long Term Equity Fund, the oldest in the category, outperformed against its respective benchmark in the last three years. The scheme gave a 28.93% return compared to 19.99% by the benchmark (BSE 500 – TRI).
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In the said period, Kotak ELSS Tax Saver Fund gave 20.81% return against 20% by its benchmark (NIFTY 500 – TRI). Parag Parikh ELSS Tax Saver Fund gave 21.44% in the last three years against 20% by its benchmark.
HDFC ELSS Tax Saver and Quant ELSS Tax Saver Fund gave 25.95% and 27.56% returns, respectively, in the said period compared to 20% by their respective benchmark (NIFTY 500 – TRI).
In three years, ELSS schemes gave an average return of around 19.70%. The schemes are benchmarked against NIFTY 500 – TRI and BSE 500 – TRI, which gave 20% and 19.99%, respectively, in the period.
Tax saving or ELSS schemes are recommended to investors looking to save taxes under Section 80C of the Income Tax Act. One can invest a maximum of Rs 1.5 lakh in these schemes and claim tax deductions on it in a financial year. ELSS funds come with a lock-in period of three years. They have the potential to offer superior returns over a long period.
If you are looking for recommendations, check: Best tax saving mutual funds or ELSS to invest in August 2024