Best ELSS vs Best Large Cap Mutual Fund: Which has given higher returns on Rs 15,000 monthly SIP in 3 years?
Best ELSS vs Best Large Cap Mutual Fund: Equity Linked Saving Scheme (ELSS) mutual funds, also known as tax saver funds, and large cap mutual funds are quite similar in nature in terms of asset allocation. As per Association of Mutual Funds in India (AMFI) classification of mutual funds, large cap mutual funds need to have at least 80 per cent of their investment in large-cap stocks. On the other hand, an ELSS fund needs to have at least 80 per cent in stocks in accordance with ELSS, 2005, notified by the Ministry of Finance. Though both are equity mutual funds, hence considered high risk, both provide more stability than mid cap and small cap mutual funds. ELSS is the only mutual fund category that provides tax benefits on deposits of up to Rs 1.50 lakh in a financial year under Section 80C of the Income Tax Act, 1961. This tax benefit is only for the old tax regime taxpayers. In this write-up, we are doing the comparative study of estimated annualised SIP returns of the best ELSS and the best large cap mutual fund in 3 years. Also, after tax benefits, which of the two helped investors earn more. Know here-
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(Disclaimer: Comparison of funds in terms of annualised SIP returns is not investment advice. It's for knowledge purpose only. Do your due diligence or consult an expert before investing.)
Which is the top ELSS mutual fund in 3 years?
Since we are considering SIP returns as the criteria, SBI Long Term Equity Fund - Direct Plan has been the top ELSS fund in 3 years with annualised SIP returns of 38.47 per cent.
Which is the top large cap mutual fund in 3 years?
Nippon India Large Cap Fund - Direct Plan is the top large cap mutual fund in 3 years in terms of annualised SIP returns at 29.62 per cent.
Nippon India Large Cap Fund - Direct Plan
The fund has assets under management (AUM) of Rs 29,534 crore, while its net asset value (NAV) is Rs 96.5617. Benchmarked against BSE 100 TRI, the fund has given 17.62 per cent return since its launch in January 2013. At an expense ratio of 0.74 per cent, the fund has Rs 100 as the minimum lump sum and SIP investment.
Nippon India Large Cap Fund - Direct Plan
It has 99.03 per cent of its investments in equity, of which 81.61 per cent is in large cap stocks. In a 64-stock portfolio, the fund's main investments are in HDFC Bank, Reliance Industries Limited, ITC, ICICI Bank, and Infosys.
SBI Long Term Equity Fund - Direct Plan
The fund has AUM of Rs 25,738 crore, while its NAV price is 467.8211. Benchmarked against BSE 500 TRI, the fund has had a 18.10 per cent CAGR since its launch in January 2013. With an expense ratio of 0.93 per cent, the fund has Rs 500 as the minimum lump sum and SIP investment. It has 90.62 per cent of its investment in equity and 9.38 per cent in cash and cash equivalents.
SBI Long Term Equity Fund - Direct Plan
Of its equity investment, 51.24 per cent is in large cap stocks, 23.65 per cent in mid cap stocks, and 15.73 per cent in small cap stocks. In its 62-stock portfolio, the fund has Ge T&D, HDFC Bank, M&M, ICICI Bank, and Bharti Airtel as the main stocks.
Rs 15,000 monthly SIP in best ELSS and best large cap mutual fund
A Rs 15,000 monthly SIP in Nippon India Large Cap Fund - Direct Plan in 3 years, or a total investment of Rs 5.40 lakh, has turned into Rs 8,25,580.
On the other hand, a Rs 15,000 monthly SIP started 3 years ago in SBI Long Term Equity Fund - Direct Plan has converted into Rs 9,27,132.
Tax benefits in SBI Long Term Equity Fund - Direct Plan
If a taxpayer hasn't invested in any other option mentioned in Section 80C, other than long term capital gains of Rs 3.87 lakh, they can also claim Rs 1.50 lakh in tax benefits.