This ELSS Tax Savings Fund Has Given A High 63% Return In The Past 2 Years, Rated 4 Star By Crisil,: Invest?

The ELSS or Equity Linked Savings Schemes mutual funds will offer you two opportunities at the same time. It will help you to save your taxes, and you can gain high short-term from the funds. These funds will invest in the Indian stock markets, but you will have to agree to a three-year lock-in period.

JM Tax Gain Fund - (Direct) - Growth

This ELSS fund has performed significantly well in the long term for SIPs. In the last 1-year SIP return (absolute return) fell by 5.29%, in the last 2 years it has fetched 12.06% returns, in the last 3 years it has given 28.21% returns, and in the last 5 years, it has fetched 43.25% returns. Annualized returns from this fund's SIP were 11.37% in the past 2 years, and 16.83% in the past 3 years. However, due to a bearish market, this fund's annualized return has fallen by 9.66% in the past 1 year.

The fund's absolute mutual fund returns have been significantly high in the last two years. In the last 1 year return stood at 3.76%, in the last 2 years it has fetched 63.18% returns, in the last 3 years it has given 57.70% returns, and in the last 5 years, it has given 81.13% returns. The reason behind this huge gap in the return is a bearish market trend in the past year in India. Compared to this, the last 2 years' growth has been sharply green.

In the past 2 years, the JM Tax Gain Fund's annualized returns stood at 27.74%, marginally lower than the category average of 30.66%. Additionally, in the past 3 years, its annualized return has been quoted at 16.38%, marginally lower than the category average of 17.04%.

This above-mentioned mutual fund SIP has been best rated with 4 Star by rating agency Crisil.

(Data till July 8, 2022)

NAV and AUM

It is a ELSS mutual fund SIP investment option that has a NAV of Rs. 28.71. The Assets Under Management (AUM) of this fund is Rs. 64.43 crore, which is not significantly high. The Expense Ratio (ER) of the fund is 1.61%. The ER is marginally lower than the category average at 1.08%. The Expense Ratio (ER) is the cost of owning a mutual fund or SIP, which will be charged by a mutual fund house from the retail investors for the purpose to manage the fund. So, a low ER can increase your profitability and vice versa.

The top 10 equity holdings of the fund are HDFC Bank Ltd., Infosys Ltd., Larsen & Toubro Ltd., ICICI Bank Ltd., Mahindra & Mahindra Financial Services Ltd., Reliance Industries Ltd., Maruti Suzuki India Ltd., Bandhan Bank Ltd., Tech Mahindra Ltd., and Ashok Leyland Ltd.

Disclaimer

Investing in equities/mutual funds/SIPs/debts/ELSS poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author are not liable for any losses caused as a result of decisions based on the article.