5 Tax Saving ELSS Schemes to Invest in 2018
ELSS schemes are gaining a lot of fame with time as people are starting to realize that how good these schemes really are. The dual benefits of high returns and tax exemption that these schemes provide are attracting investors just like honey attracts bees. To have a detailed overview of what ELSS Funds are and what are their benefits you can read Why Is ELSS an Essential Part of Every Investor's Portfolio?
Today, we are here to discuss the best ELSS mutual fund schemes that you can invest in 2018.
How Do We Choose these Schemes?
There are certain parameters and measures which we use to identify good mutual fund schemes. The important factors that play an important role in choosing these funds are:
- Investment strategy of the scheme
- Sectors that fund invests in
- Diversity in fund allocation
Let’s now move toward the recommendations.
1. Reliance Tax Saver (ELSS) Fund
This scheme has shown that why ELSS funds are said to provide one of the best returns in long run. The returns given by the scheme in 5 and 10 years of time are 19.53% and 16.09%, respectively (as on Jul 02, 2018) which are really great even if compared to pure equity schemes. Reliance Tax Saver Fund as on Jul 02, 2018, has a NAV of Rs 54.08 and the assets under management as recorded on May 31, 2018 are Rs 9,996 crore.
Who Can Invest?
This scheme follows an aggressive style of investment, making it an ideal option for investors who are looking for high returns and are ready to take high risk with their investment. Also, this fund has around 60% of investment in large caps, and with the current volatility in large-cap stocks, one can invest in this fund with a long-term horizon.
2. Aditya Birla Sun Life Tax Relief 96 Fund
This scheme was launched on Mar 29, 1996, with the objective to provide investors with long-term capital gain by investing in a mix of equities and debt. The fund has given returns of 13.67%, 12.80%, 22.40%, and 15.03%, in 1, 3, 5, and 10 years, respectively, beating its benchmark at all instances. Aditya Birla Sun Life Tax Relief 96 Fund has a current net asset value of Rs 158.18 (as on Jul 02, 2018) and the assets under management worth Rs 6102 crore (as on May 31, 2018).
Who Can Invest?
This scheme is a great option for investors who are looking for an aggressive style portfolio. It has around 51.33 % investment in mid cap stocks, which makes it a bit risky, but the opportunities that it brings with it are also high.
3. DSP BlackRock Tax Saver Fund
This fund is one of the best schemes from DSP BlackRock Mutual Fund. It has provided average returns of 4.08% in 1 year, but the 3 and 5 years returns of 10.72% and 19.71% (as on Jul 02, 2018) shows that how good this fund is for long-term investments. This scheme has a current NAV of Rs 44.168 (as on Jul 02, 2018) and is managing an assets size of Rs 4295 crore (as on May 31, 2018).
Who Can Invest?
DSP BlackRock Tax Saver Fund is a great option for investors who are looking for a consistent growth over long period of time. This ELSS scheme has major investment (around 72%) in large cap stocks, which provides it with stability even during the volatility in capital market. It is a great option for investors with average risk appetite.
4. L&T Tax Advantage Fund
Launched on Feb 27, 2006, this fund is among the top-rated ELSS schemes. This scheme has provided returns of 12.46%, 19.69%, and 16.04% in 1, 3 and 5 years, respectively(as on Jul 03, 2018) beating its benchmark at all 3 instances. This scheme has Rs 3236 crore (as on May 31, 2018) worth assets under its management and a current net asset value of Rs 54.59 (as on Jul 03, 2018).
Who Can Invest?
This scheme is a great option for investors who are looking for ELSS fund with moderate risk and moderate returns. The diversity of portfolio allows L&T Tax Advantage Fund to be stable even when a particular market cap is not performing well.
5. Axis Long Term Equity Fund
This scheme is one of the best and biggest in its respective category. It has an assets size of Rs 17,546 crore (as on May 31, 2018) and the returns that the scheme has given in 1, 3, and 5 years are 17.60%, 11.64%, and 23.88%, respectively (as on Jul 02, 2018). Besides, its current NAV is Rs 43.21 (as on Jul 02, 2018) and the most favored sectors of the fund are finance, automobile, and chemicals.
Who Can Invest?
Axis Long Term Equity Fund manages one of the largest asset sizes in its respective category. This ELSS scheme is best-suited to investors, who are looking for a portfolio with a mix of mid and large cap stocks and have a moderately low-risk appetite.
Henceforth, these were the best ELSS schemes which have provided investors with value for their money. If you are looking for investment in ELSS funds, then you can go for these schemes, but always remember to do your own research before reaching a final decision.
If you have any queries regarding these or any other mutual fund schemes, then you can contact our experts at MySIPonline.
