Top 5 ELSS SIP Mutual Funds in 5 Years: Rs 25,000 monthly SIP in No. 1 fund has grown to Rs 40 lakh; know details
Income Tax Season: A tax payer can save up to Rs 1.50 lakh in a financial year on deposits in ELSS. Another benefit of investing in ELSS mutual funds is that, unlike many tax-saving schemes that have a lock-in period of five years or more, ELSS funds have a three-year lock-in period.
Top Tax Saver Mutual Funds: Equity Linked Savings Scheme (ELSS) is a category of equity mutual funds that offers tax benefits under Section 80C of the Income Tax. With the last date (July 31, 2024) to file an income tax return (ITR) approaching fast, the importance of tax saving options such as ELSS comes to the fore. A tax payer can save up to Rs 1.50 lakh in a financial year on deposits in ELSS. Another benefit of investing in ELSS mutual funds is that, unlike many tax-saving schemes that have a lock-in period of five years or more, ELSS funds have a three-year lock-in period. A majority of fund managers keep ELSS funds large-cap heavy, providing stability to them over mid- and small-cap mutual funds. Many of the ELSS mutual funds in the last five years have not only worked as a Section 80C tax saving component for tax payers, but they have also given annualised SIP returns of up to 41 per cent. As per Value Research data, the ELSS mutual fund category has given a CAGR of 41.31 per cent in the one year, 20.40 per cent in the three years, and 20.58 per cent in the five years. We take you through the performance of five such ELSS funds in this write-up. Also know the value of the Rs 25,000 monthly SIP in each of the funds in the five-year period.
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Quant ELSS Tax Saver Fund - Direct Plan
The fund at No. 1 spot has given annualised SIP returns (XIRR) of 40.36 per cent in the five-year period. It has an asset base of Rs 10,528 crore, while its net asset value (NAV) is Rs 451.9994. The open ended fund's expense ratio is 0.77 per cent. Benchmarked against NIFTY 500 TRI, the fund has given 23.67 per cent CAGR returns since its inception in January 2013. Rs 500 is the minimum amount for lump sum and SIP investments in the fund. It has 96.6 per cent of its investments in domestic equities with 38.63 per cent of them in large-cap stocks. It has 46 stocks in its portfolio against the category average of 52.16. The main stocks in its portfolio are HDFC Bank, Reliance Industries Ltd, Adani Power, Jio Financial Services, and Aurobindo Pharma.
A Rs 25,000 monthly SIP started five years ago in the fund has given Rs 39,86,362 as of today's date.
SBI Long Term Equity Fund - Direct Plan
The fund from SBI Mutual Fund has given a 33.24 per cent annual SIP return in the five-year time frame. The fund has an asset base of Rs 25,738 crore, while its NAV price is Rs 462.5169. The open ended fund has an expense ratio of 0.94 per cent. Started in January 2013, the fund has BSE 500 TRI as its benchmark. It has given an 18.11 per cent return since its launch. The minimum lump sum and SIP investments in the fund are Rs 500 each. The fund has 90.97 per cent of its investments in equity with 51.88 per cent of them in large-cap stocks. In its 62-stock portfolio, the fund has GE T&D, HDFC Bank, Torrent Power, Mahindra & Mahindra, ICICI Bank, and SBI as its main stocks.
A Rs 25,000 monthly SIP in the fund has turned into Rs 33,81,160 now.
Bank of India ELSS Tax Saver Fund - Direct Plan
The fund has given 32.89 per cent XIRR in the five-year period. It has an AUM of Rs 1,428 crore, while its NAV is worth Rs 202.1700. Benchmarked against BSE 500 TRI, the fund has given a 20.52 per cent return since its launch in January 2013. The open ended has an expense ratio of 0.98 per cent. The minimum SIP and lump sum investments in the ELSS fund are Rs 500 each. It has 99.61 per cent of its investment in domestic equity, of which 36.21 per cent is in large-cap stocks. In its 62-stock portfolio, the fund has SBI, Vedanta Ltd, Hindustan Aeronautics Limited, OIL, and Canara Bank.
A Rs 25,000 monthly SIP started in the fund five years ago has grown to Rs 33,53,815.
Motilal Oswal ELSS Tax Saver Fund - Direct Plan
The fund has given annualised SIP returns of 31.88 per cent in the five years. It has an asset base of Rs 3,710 crore, while its NAV is worth Rs 55.5149. The open ended fund has an expense ratio of 0.68 per cent. Benchmarked against NIFTY 500 TRI, the fund has given a 19.83 per cent return since its inception in January 2015. The minimum lump sum and SIP investments in the fund are Rs 500 each. The fund has 99.3 per cent of its investment in domestic equities of which 31.85 per cent are small-cap stocks. In its 30-stock portfolio, the fund has Zomato, Trent, Prestige Estates Projects, Bharat Dynamics, and Jio Financial Services as its main stocks.
The one who started a Rs 25,000 monthly SIP in the fund five years ago has Rs 32,74,811 as its value.
JM ELSS Tax Saver Fund - Direct Plan
The fund has given 30.56 per cent annual SIP returns in the five years. The fund has a small asset base of Rs 161 crore, while its NAV price is Rs 55.9539. Benchmarked against BSE 500 TRI, the fund has given a 19.44 per cent return since its launch in January 2013. The open ended fund has an expense ratio of 1.13 per cent. The minimum lump sum and SIP investments in the fund are Rs 500 each. It has 99.7 per cent of its investments in equity. In its 55-stock portfolio, HDFC Bank, ICICI Bank, Larsen & Toubro, Infosys, and PFC are its main stocks.
A Rs 25,000 monthly SIP started five years ago holds a total value of Rs 31,74,746 as of today's date.