Tax saving is most important investment objectives. And you may start your planning from this April itself. But don’t wait till March 2018.Therefore equity product has investment option for tax saving cum long term. In addition, you may check the 3 year and 5 year performance of these funds. Hence, see top ELSS funds.
Top Performing Tax saving Mutual fund schemes
ELSS is one of best tax saving options in financial market. Moreover, 111 ELSS mutual fund schemes are available. And category returns for last 5 years is around 12%. Below are top performing tax saving mutual funds. Hence, see their lump sum investment returns.
Probably, returns are for regular plans and growth option. Hence, see below list of top 5 tax saving mutual fund schemes. You can read investment in ELSS mutual fund.
- DSP Blackrock Tax Saver Fund
- Birla Sunlife Tax Plan
- Birla Sun life Tax Relief ’96
- Franklin India Taxshield Fund
- Axis Long Term Equity Fund
Best ELSS mutual fund schemes & risk statistics
However, Past performance is not guarantee of future performance. But Equity based funds are based on market risks. And they are making by these top performing ELSS mutual funds. Apart from savings return. It is equally important that you need to look at risk of these funds.
Thus returns make by mutual fund scheme are measure by some main risk ratios. Like standard deviation, Beta and Alpha. In addition, like Sharpe Ratio, R-Squared Ratio and upside & Downside ratios.
DSP Blackrock Tax Saver Fund: However, this fund has invested its corpus in stocks. And those stocks belong to Banking, Oil & Gas and Auto sectors. But 70% of funds corpus has invested in large cap stocks. Therefore 20% in Mid-cap company stocks. Probably, in 5to 10 years returns are 20.6% and 15.7%.
Birla Sun life Tax Plan: these fund chosen sectors are Auto, Banking and Pharmaceuticals. Because, this fund is mid-cap oriented fund.Moreover, 58% of its corpus fund has been allocated to mid & small cap stocks. Hence, returns generated by this fund are 19 to 12% in 5 to 10 years.
Birla Sun life Tax Relief ’96: Furthermore, Portfolio allocate to mid and small cap stocks. But fund portfolio has stocks from these top 3 sectors. Like Banking, pharmaceuticals & auto. Similarly, fund follows multi cap strategy. However, returns are 20.2% and 12.8% in last 10 years.
Franklin India Tax shield Fund: Technology, Auto and banking sectors have given importance by this fund. And its portfolio allocation can consider as large cap oriented fund. Therefore 80% fund corpus is in large cap stocks.
Axis Long Term Equity Fund: On other hand fund performance has not up to mark in FY 2016-17. But Fund is still one of best performer in last 5 years period. Probably, Banking, Auto and Engineering are top 3 sectors in this fund’s Portfolio. And Fund focuses on stocks of companies with scalable business models.
But it provides high return on capital and secular growth. However, portfolio of fund is towards large-caps. Because, their weight being 65-70 per cent. Hence, mid caps being 25-30 per cent. In addition, check Benefits of Investing in ELSS Funds Using SIP.
Finally, you can read SIP vs Lump sum investment. Therefore see best Equity Mutual fund Schemes. You can read on Best ELSS funds to invest in FY 2017 – 2018. Hence, check on advantages of ELSS fund. And also see how to invest in ELSS schemes.