These 2 ELSS Funds Ranked 1 By CRISIL, Good To Start SIP in 2022
ELSS (Equity-Linked Saving Fund) mutual funds offer a great way to make decent returns while avoiding taxes as these funds come with a tax benefit of Rs 1.5 lakh Per year. Moving further, at least 80% of the assets of these funds are invested in stocks. As a result, the potential profits are closely related to the stock market's success. If you want to invest for long-term goals like building a retirement fund or purchasing a new home, this might be a good alternative. These funds come with a 3-year lock-in period. Among all tax-saving investing options, this has one of the shortest lock-in periods. ELSS funds becomes a popular investment choice among investors who wants to save tax and make a good return.
Quant Tax Fund -Growth
As of January 2022, the fund invests in Indian stock account for has around 97.79%, with large-cap stocks accounting for 53.28%, mid-cap stocks for 14.97%, and small-cap stocks accounting for 24.35%. The NAV of the fund as of 14th January 2022 is INR 234.9365. The fund offered a promising return of 22.4% for years, which is higher than the category average, 17.61%.
Fund size is INR 658.11 Cr, which is almost 0.44% of investment in the category. The expense ratio of the fund is 2.25%, which is slightly higher than the category average, 2.04%. The fund is rated highly risky on the risk meter. The fund is ranked One by the CRISIL with a 5-star rating. The fund has consistently offered higher annualized returns than the category average for the past 1Y, 3Y, and 5Y. The fund is consistently ranked top by the rating agency.
Talking about objective is to create capital appreciation by primarily investing in a well-diversified portfolio of growth-oriented equity shares. This income might be supplemented by dividends and other sources of revenue. It is most suitable for the investors who want to put their money into anything for at least three years and want to save money on taxes in addition to getting a better return. At the same time, these investors should be prepared for the prospect of moderate losses and a three-year lock-in period in their investments.
BOI AXA Tax Advantage Fund (Regular Plan) Growth
As of January 2022, the fund invests in Indian stock account for has around 98.24%, with large-cap stocks accounting for 27.83%, mid-cap stocks for 22.09%, and small-cap stocks accounting for 21.13%. Further, the fund has 0.2% investment in Debt of which 0.2% is in Government securities. The NAV of the fund as of 14th January 2022 is INR 105.83. The fund offered a promising return of 26.6% for years, which is higher than the category average, 17.61%.
Fund size is INR 552.46 Cr, which is almost 0.37% of investment in the category. The expense ratio of the fund is 2.58%, which is slightly higher than the category average, 2.21%. The fund is rated highly risky on the risk meter. The fund is ranked One by the CRISIL with a 5-star rating. The fund's 3Y and 5Y annualized returns are higher than the category average. The fund is consistently ranked top by the rating agency.
Talking about the fund's objective, the Scheme is in the nature of a diversified multi-cap fund. The Scheme does not provide any promised or secured returns. There can be no guarantee that the Scheme's investment goals will be met. Investors who are looking to invest money for at least 3 years and looking for additional benefits of income tax saving apart from higher returns expectations can invest in the fund. At the same time, these investors should also be ready for the possibility of moderate losses in their investments and 3 year lock-in period. The Scheme aims to achieve long-term capital growth by investing primarily in equities and equity-related assets across all market capitalizations.
Returns and Performance
Quant Tax Fun- Growth
NAV as on 14th January 2022
Period Invested for | ₹10000 Invested on | Latest Value | Absolute Returns | Annualised Returns |
---|---|---|---|---|
1 Year | 14/01/21 | 15760.1 | 57.60% | 57.60% |
2 Year | 14/01/20 | 24560.6 | 145.61% | 56.62% |
3 Year | 14/01/19 | 25566.9 | 155.67% | 36.70% |
5 Year | 13/01/17 | 32568.8 | 225.69% | 26.60% |
Since Inception | 31/03/00 | 234936.5 | 2249.37% | 15.58% |
BOI AXA Tax Advantage Fund (Regular Plan) Growth
NAV as on 14th January 2022
Period Invested for | ₹10000 Invested on | Latest Value | Absolute Returns | Annualised Returns |
---|---|---|---|---|
1 Year | 14/01/21 | 13947 | 39.47% | 39.47% |
2 Year | 14/01/20 | 18804.2 | 88.04% | 37.07% |
3 Year | 14/01/19 | 22181.9 | 121.82% | 30.39% |
5 Year | 13/01/17 | 27502.6 | 175.03% | 22.40% |
Since Inception | 25/02/09 | 105830 | 958.30% | 20.08% |
Risks
The risk ratio calculated for the both the on daily basis. Here, it is compared to its category average as of 31 December 2021 for 3 years are as follows.
Risks Ratio | Category Average | Quant Tax Fund (G) | BOI AXA Tax Advantage Fund (G) |
---|---|---|---|
Standard Deviation | 19.31 | 21.61 | 18.41 |
Beta | 0.88 | 0.89 | 0.84 |
Sharpe Ratio | 0.85 | 1.3 | 1.26 |
Treynor Ratio | 0.19 | 0.32 | 0.28 |
Alpha Ratio | 2.5 | 13.88 | 9.59 |
The Standard Deviation Value, and the Beta ratio of the Quant fund have high volatility, whereas, the BOI AXA Tax Advantage Fund has low Volatility. The Sharpe, Treynor, and Alpha Raios of both the funds have better risk-adjusted returns.
Disclaimer
Mutual fund investments are subject to market risk. Read all scheme-related documents along with terms and conditions carefully before investing. The above-mentioned information is purely informational and originated from MoneyControl. The Greynium Information Technologies and the author are not liable for any losses caused as a result of a decision based on the article.