Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

What would be the top five ELSS to invest in 2018?

Author: Debasis Mohapatra/Tuesday, December 5, 2017/Categories: Mutual Funds

What would be the top five ELSS to invest in 2018?

Mumbai, Dec 5 - Equity Linked Savings Scheme or ELSS has fast emerged as one of the most popular options for investment in equities through mutual fund route for higher return and better tax savings. As we are on the verge of entering into the new year, it’s the best time to evaluate our portfolio and invest in top performing ELSS funds to generate sound return from our investment. ELSS is also an ideal financial instrument for tax planning as an investor can save up to Rs 1,50,000 under Section 80C of Income tax Act. In this perspective, we try to collate the top five ELSS funds based on their performance and other financial parameters.

“The best trigger for investing in ELSS is tax savings as it provides better return due to the lock-in period. IRR (internal rate of return) on post tax basis is usually higher in these kinds of financial instruments,” Aslam Checkar, Head (PMS & Mutual Fund) at Karvy Private Wealth told ‘The Finapolis’.

He also said that fund manager has the liberty of executing his investment ideas due to the stable nature of funds owing to the lock-in period. As compared to open-ended mutual funds, redemption pressure in ELSS is less frequent, he added.

Notably, ELSS has a lock-in period of 3 years to make it eligible for tax savings. It is an ideal instrument for an investor who seeks wealth creation over a longer time frame. As a category, ELSS has garnered 13.33% return in the last three years, 19.11% in five years and 9.46% in last 10 years.

According to Karvy Private Wealth, investors can consider investing in these ELSSs based on their past performance. HDFC Long term Tax Advantage Fund, Aditya Birla Sun Life Tax Relief 96, ICICI Prudential Long term Equity Fund (Tax saving), Reliance Tax Saver are the schemes recommended by the private investment firm.

As per available data, Aditya Birla Sun Life Tax Relief 96 gave a return of 15.31% in three years and 21.58% in last five years to investors. Similarly, HDFC Long term Tax Advantage Fund generated a return of 11.54% in three years and 18.66% in five years.  Under the ELSS category, ICICI Prudential Long term Equity Fund gave a return of 8.45% in three years and 17.21% in five years. Reliance Tax Saver is another top performing ELSS fund which has given a return of 11% in three years and 21.99% in five years.

Apart from these funds, DSP BlackRock Tax Saver Fund is another good fund to bet on as the scheme has given a return of 19.8% in five years and 13.9% in last three years. Investors can also consider investing in Axis Long term Equity Fund which has given a return of around 22% in five years and 11.74% in last three years.

Print Rate this article:
2.0

Number of views (794)/Comments (0)

rajyashree guha

Debasis Mohapatra

Other posts by Debasis Mohapatra
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.