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3 Tax Saving ELSS Schemes Ranked “No 1” By CRISIL
CRISIL tends to rank various mutual fund schemes based on mean returns, volatility, exposure to sensitive sectors, liquidity, active returns etc. Based on some of these parameters the rating agency comes out with a ratings. A ranking of Number 1, indicates a very good performance, which makes the same attractive for investment. Here are 3 Tax Savings ELSS Schemes that are ranked Number 1 by CRISIL.
Canara Robeco Equity Tax Saver
The fund has given a good returns over the last few years. Take a look at the below for the ratings of Canara Robeco Equity Tax Saver.
| Returns | % Annualized |
| 1-year | 12.44 |
| 3-years | 9.66% |
| 5-years | 10.14% |
The returns from the fund as seen above are good, when compared to returns from fixed deposits or other instruments. The funds of the company are mostly placed in the largecap stocks including the likes of Infosys, Reliance Industries, ICICI Bank, HDFC Bank and Tata Consultancy Services.
The fund has cash and cash equivalents to the tune of only 2 per cent, while the entire corpus is invested. Since this is a ELSS tax saving scheme, the investment qualifies for tax rebate under SEC0C of the Income Tax Act.
BOI AXA Tax Advantage Fund
This is another fund that has been ranked well by Crisil. It has the highest rank of Number 1. This fund is essentially a multicap fund, which means that it invests in stocks across market capitalization.
Returns from BOI Axa Tax Advantage
| Returns | % Annualized |
| 1-year | 17.58% |
| 3-years | 5.86% |
| 5-years | 10.16% |
The long term returns of 5 and 7 years from the fund have been fantastic. BOI Axa Tax Advantage has a number of stocks in its portfolio that have the potential to generate good returns. Among these include names like Reliance Industries, HDFC Bank and PI Industries.
Since this is an ELSS scheme there is a tax benefit and the one good thing about ELSS schemes is that there is a lock-in period of only 5 years.
BNP Paribas Long Term Equity Fund
This fund too offers long term tax rebate and has been ranked No 1 by Crisil based on parameters like returns, liquidity etc. This fund has also generated pretty decent returns of 13.36 per cent on an annualized basis in the last 7 years and 10.59 per cent over the last 10 years. This is also a good fund to park money for tax savings purposes.
The net asset value under the growth plan is Rs 42.23. An SIP in the fund is also possible with an investment of Rs 500 each month. Investors are advised to go the SIP route given the volatility from the markets.
BNP Paribas Long Term Equity Fund is a good fund to invest for those looking to generate good returns over the medium to long term.
About the author
Sunil Fernandes has spent 26 years covering business and finance in India and abroad. Sunil has worked with frontline daily newspapers including Hindustan Times, Deccan Herald and Gulf Times. He has also worked with investment magazines like Dalal Street Investment Journal and Oman Economic Review. His forte remains stocks, commodities, debt, mutual funds and tax planning. Sunil is currently Managing Editor for Goodreturns.in
