This Top-Rated ELSS Fund Delivered 21.68% Annualised SIP Returns In 3 Year, SIP Starts At Rs 500

The shortest lock-in time of all the choices accessible to investors is offered by an ELSS or equity-linked savings scheme. In contrast to other investment options like PPF, life insurance plans, etc., the ELSS mutual fund delivers high returns but also carries a larger risk. Here are some tips on how to invest wisely in ELSS mutual funds to reduce risk.

In this article, we have highlighted one such scheme, the Mirae Asset Tax Saver Fund (Direct Plan). It has given good returns over the last 3 years and outperformed the returns. Let's learn more about the fund.

Mirae Asset Tax Saver Fund

Mirae Asset Tax Saver Fund, as the name suggests is a Tax Saver Fund also known as Equity Linked Saving Scheme mutual fund scheme by Mirae Asset Mutual Fund. It is 6 years old open-ended and highly risky ELSS fund. It was on December 28, 2015. 

Under the Direct Plan Growth Option of the fund, its assets under management (AUM) size is Rs 11494.59 crore. The expense ratio of the fund is 0.57%, which is less than its category average ratio of 1.1%. Its Net Asset Value (NAV) declared on 27 July 2022 is Rs. 32.333. Its benchmark is the NIFTY 500 Index.

It has been rated 5-star by Value Research and 4-star by mutual fund rating agency CRISIL. The fund outperformed the benchmark in long term. However, it has average delivered average performance among peer funds. On SIP investments, the fund has also performed well and delivered more than 20% annualised returns in 3 years.

Minimum Amount Required & Lock-in Period

You can start investing with a minimum required amount of Rs 500 for a lump sum payment. For SIP, the minimum amount required is Rs 500. For additional investments, the minimum required amount is also Rs 500.

It is an ELSS fund and comes with 3 years lock-in period. It has no exit charges. Investors who expect larger profits but also want to save money on their taxes in addition to investing for at least 3 years can consider this fund for investments. 

Annualised Returns

Lump Sum Investment

It has given an annual average return of 19.51% since its inception, which is higher than its category annual average return of 14.77%.

1-Year	2-year	3-year	5-Year
4.36%	30.34%	20.73%	15.66%

SIP Investment Returns

In 1 year of SIP, it has given a negative return. 

1-Year	2-year	3-year	5-Year
-1.88%	15.34%	21.68%	18.37%

Portfolio

It is an ELSS fund with a major holding in equity instruments around 99.11%. It has major investments in large-cap stocks around 58.49% followed by 11.52% in mid-cap and 7.1% in small-cap stocks. 

The fund has major equity investments are in the Financial sector, Technology, and Energy. It has investments in other sectors including Healthcare, Automobile, Consumer Staples, Materials, Services, Capital Goods, Communication, Chemicals, Insurance, Construction, Metals & Mining, Consumer Discretionary and Textiles.

The top equity holdings of the fund included HDFC Bank, Infosys, ICICI Bank, Reliance Industries, Axis Bank, State Bank of India, Tata Consultancy Services, Bharti Airtel, Larsen & Toubro and Sun Pharmaceutical Industries.

Disclaimer

Mutual funds investment are subject to market risks. Read all scheme related documents carefully before investing. Greynium Information Technologies, and the Author are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.