Wealth managers recommend ELSS funds over other forms of investments under Section 80C due to the shortest lock-in period of three years.
Wealth managers recommend ELSS funds over other forms of investments under Section 80C due to the shortest lock-in period of three years. It also helps investors access equity as an asset class, which helps beat inflation over the long term. As investors get ready to submit proofs of investment under Section 80C in the first week of January, we take a look at five tax-savings funds:
Mirae Asset Tax Saver
AUM: ₹1,209 crore
Fund Manager: Neelesh Surana
Top Holding: HDFC Bank, Reliance, ICICI Bank
3 year returns*: 18.01% Barely three years old, the fund is one of the best performing in the category. It adopts a multicap approach to stock picking, eyeing companies with reasonable quality business, available at a reasonable price. The fund is overweight large caps, well diversified with individual stock exposures not above 5%. Stocks like TCS, Reliance, Infosys have helped it generate.
Axis Long Term Equity Fund
AUM: ₹17,626 crore
Fund Manager: Jinesh Gopani
Top Holding: HDFC Bank, TCS, Kotak bank
3 year returns: 11.87%
The largest by assets under management, the scheme topped performance charts in the past year. The fund follows a growth strategy investing largely in bluechips and is recommended by financial planners to investors looking to build a large cap quality portfolio. Stocks which find a place in the portfolio are ones which have a scalable business, high return on capital and secular growth.
The fund is overweight financials and automobiles and underweight FMCG which has helped performance in the last one year.
Invesco India Tax Plan
AUM: ₹668 crore
Fund Manager: Amit Ganatra and Dhimant Kothari
Top Holding: HDFC Bank, Reliance, Infosys
3 year returns: 11.18%
A conservative fund for tax savers, the fund manager also adopts a multicap strategy. The scheme typically has a 60:40 mix of largecaps and midcaps. But over the past year, it has tilted towards large caps due to expensive valuations in the midcap space. The fund manager is overweight financials, energy and auto. Stocks like Coromandel and Maruti have helped it give good returns