This 3-Year-old ELSS Fund Has Offered Close To 50% Returns In 3-Years- Should you Invest?

Mutual funds are one of the more appealing investment options not because easy and offer good returns but because it offers tax benefit. ELSS is the only mutual fund category that offers this benefit. These funds are a modified form of mutual funds that offers capital gain as well as a tax benefit. It is good for investors who want to save taxes with their investments. Here, in this article, we have given insights into one such ELSS fund. As mentioned this fund is a 3-year-old fund. Check out other details and returns.

Shriram Long Term Equity Fund - Direct Plan-Growth

This ELSS mutual fund scheme is an open-ended small size fund of its category launched on 25th January 2019 by the Shriram Mutual Fund. The AUM of this fund is Rs 43 Crore. The NAV declared on 27th April 2022 is Rs 15.8027. It has an expense ratio of 0.6%, which is almost half of its category average expense ratio when compared.

The fund aims to provide long term capital growth by diversifying investment in equity and equity liked instruments. The benchmark of this fund is NIFTY 500. This is a highly risky ELSS fund. However, it has offered good returns over the last 3 years. To start investing in this fund, the minimum amount required for both lump-sum payment and SIP is Rs 500. It has 3 year lock-in period as it is an ELSS fund. 

 Absolute And Annualised Returns

Lump-Sum Returns

Since its inception, it has delivered 15.10% average annual returns.

Tenure	Absolute Returns	Annualised Returns
1 Year	15.83%	15.84%
2 Year	63.36%	27.81%
3 Year	49.53%	14.32%
Since Inception	58.03%	15.10%

SIP Returns

Tenure	Absolute Returns	Annualised Returns
1 Year	2.22%	4.14%
2 Year	18.62%	17.38%
3 Year	28.25%	16.84%

Portfolio

Fund has 98.29% investment in equities of which 58.96% is in large-cap stocks, 8.01% is in mid-cap stocks, and 10.53% is in small-cap stocks.

The fund has the majority of its money invested in the Financial, Materials, Technology, Energy, and Consumer Staples sectors.

The fund's top holdings are Bharti Airtel Ltd., Reliance Industries Ltd., ICICI Bank Ltd., HDFC Bank Ltd., and Infosys Ltd.

Disclaimers

Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.