These 3 Tax Saver ELSS Mutual Funds Gave Best Returns In 3-Years

It is a time of the season, where investors are busy doing tax planning. In this regard, several investors look to Equity Linked Savings Scheme (ELSS) to save on tax. Here are 3 tax saver ELSS that have given the best returns over the last 3-year returns.

Quant Tax Plan, Direct, Growth

This fund is by far the leader with the best 3-year returns of a whopping 39.51% on an annualized basis. The fund also has a 5-star rating from Crisil or as the institution also calls it the No 1 rating. The returns are way ahead of others. The returns from Quant Tax Plan, Direct, Growth is almost double that of the category average. The stocks in the portfolio include companies like State Bank of India, diversified conglomerate ITC. The expense ratio of the fund is a little high at 2.62%. The annualized 5-year returns from Quant Tax Plan has 22.37% over the last 5-years on an annualized basis. However, it is important to remember that markets are dynamic and past track record does not mean future returns to good move in tandem.

Parag Parikh Tax Saver Fund, Direct growth

Again, this fund has been awarded the top ratings from Crisil of No 1 in its category. This is the second best fund under ELSS Tax Savers according t 3-year returns. Parag Parikh Tax Saver Fund, Direct growth, currently has a net asset value of Rs 20.80, while the expense ratio is well managed at 0.82%. Housing Development Finance, Bajaj Holdings, Axis Bank, ICICI Bank and ITC make-up the top holdings of the fund. Those who are looking to invest in the mutual fund scheme, would receive tax benefits under SEC80C of the Income Tax Act.

IDFC Tax Advantage Fund, Direct Plan Growth

This is another tax saver fund, which is also called Equity linked Savings Scheme or ELSS, which has generated very good annualized returns over 3-years. IDFC Tax Advantage Fund, Direct Plan Growth has given 3-years annualized returns of 22.64%, which is more than the averages of schemes from the sector. The portfolio is sound and comprises names largely from the banking and IT Sector, among its top holdings. Investing in mutual funds can be rather difficult as sometimes funds that have outperformed, may under perform. Markets are too dynamic and what looks good or best now, may not be necessarily so in the future.

 

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