Equity Linked Savings Schemes (ELSS) have gained immense popularity, not only on account of the fact that they help save tax, but, also because they are the only tax saving schemes that have a 3-year lock-in. Most of the tax savings schemes have a 5-year lock-in or more. Here are 3 tax savings ELSS schemes that have done well in the past. However, we are not endorsing any of these products and are providing just information to our readers.
Canara Robeco Equity Tax Saver Fund - Regular Plan
This fund has a 5-star rating from both rating agency Crisil and Value Research. The 1-year returns from the fund has been a solid 15.64 per cent, while the 5-year returns has been 10.08 per cent on an annualized basis.
The fund has 97.1 per cent of its assets in stocks, while the balance is in cash holdings. The top 10 holdings of the fund forms 50 per cent of the portfolio. The NAV of the fund under the growth plan is currently Rs 26.19. Over the last few years, this fund has performed well and given the portfolio, there is a high possibility of outperformance. The portfolio includes names like Infosys, Reliance Industries, HDFC Bank and ICICI Bank to name just a few.
Mirae Asset Tax Saver Fund - Regular Plan
This Fund has a 5-star rating from Value Research and has beaten the returns from the BSE 500. This fund has a 4-star rating from Crisil.
The 1-year returns has been pretty decent at 10.16 per cent. Since the fund began in Dec 2015, we do not have any 5-year returns. The portfolio of the fund is pretty much strong and incudes names like Infosys, HDFC Bank and ICICI Bank.
While it is pretty much difficult to hazard a guess on where the markets are headed and what returns to expect, we believe that the fund has a pretty decent portfolio. But, returns cannot be certain and assured. The fund has a NAV under the growth plan of Rs 40.83 as on Sept 14.
DSP Tax Saver Fund
The DSP Tax Saver Fund has a 4-star rating from Crisil and Value Research. Again, the fund has done well to beat the BSE 500.
The fund has generated a poor returns of 2.92 per cent in the last 1 year, however, the 5-year returns are placed at 9.09 per cent and the 7-year returns are placed at 15.20 per cent on an annualized basis. The growth scheme currently has an NAV of Rs 48.27, if one needs to invest.
The fund has sizeable assets under management of nearly Rs 6,300 crores. It's important to remember since this is an ELSS scheme there would be a lock-in period of 3-years. Investors would get a tax rebate under SEC 80C of the Income Tax Act.
We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor.