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#Best performing mutual funds of 2013 how to#

Reliance Tax Saver Fund: Reliance Tax Saver Fund has generated CAGR of 14% since inception. Inception:ĭSP BlackRock Tax Saver Fund: DSP BlackRock Tax Saver Fund has generated a 13.87% CAGR since inception.The fund focuses on large cap companies.įund Strategy: The fund has a bottom-up investment approach, with a strong focus on investment in good companies with an attractive valuation. The fund performed well since its inception growing at a CAGR of 24%įund Strategy: The fund invests in large-cap companies which have the potential to grow and has an attractive valuation. Inception:į ranklin India Taxshield: Franklin India Taxshield is one of the best ELSS available in the market. The fund invests in companies which can grow well in the time frame 3-5 years.įund Strategy: The fund invests in large-cap companies which have the potential to grow in the next 3-5 years. List of Top 10 ELSS Fund with other critical details:Īxis Long Term Equity Fund: Axis long-term equity fund is managed by Axis Mutual Fund and it’s one of the largest assets under management. Dividend reinvestment option : In this option, usually dividend is paid out to investors and investors have the option of reinvesting the dividend back to the fund for capital appreciation.But after dividends are distributed, the NAV of the scheme gets re-adjusted. Dividend Option : In this option, investors receive dividends.Such funds usually have the capacity to generate long term capital appreciation for investors. Growth Option : In case of growth option, investors don’t get dividends, rather dividends are further reinvested in the fund.Which option to select while investing in ELSS? Higher Sharpe ratio of a fund tends to give a higher return.

Higher standard deviation & beta tends to make funds riskier. Financial Parameters : While evaluating tax saving mutual funds, you should also look at the following parameters: Standard Deviation, Sharpe ratio, Sortino ratio, Alpha and Beta.Therefore investors need to select a fund with a lower expense ratio. Lower expense ratio helps investors make better returns. Expense ratio : The expense ratio highlights the money required to manage the expenses of the fund.Fund History : Look at the past performance of the fund for at least 5-10 years.To get the correct picture, analyse these tax saving mutual funds as per their 5-year performance. Returns : Investors need to analyse the past performance of the fund against its benchmark and peers.Investors should look at the following parameters while selecting tax saving mutual funds.

#Best performing mutual funds of 2013 how to#

How to evaluate ELSS funds for investment? This actually makes people remain invested for a long period virtually blocking the cash

Data suggests that ELSS has given good returns only when it is held for more than 5 years.

ELSS is comparatively risky when compared to other tax saving Mutual funds like PPF, NPS etc.

Investing in ELSS has the following disadvantages:

ELSS is managed by experienced and qualified fund managers, eliminating the need to pay attention to minute by minute price movements like in stocks.

There is no cap on maximum investment in ELSS.

Long term capital gains in ELSS are taxed at 10% only above Rs 1 Lakhs.

ELSS is locked-in for only 3 years whereas a tax saving Bank FD has a lock-in period of 5 years.

ELSS has the shortest lock-in period among all other tax saving mutual funds.

Investing in ELSS has the following advantages: What are the Advantages & Disadvantages of ELSS :

You can invest in ELSS via lumpsum or SIP i.e.

they invest in stocks, hence they carry high risk.

ELSS is an equity-oriented mutual fund i.e.

Here are a few points that you should consider before investing in ELSS. By investing in ELSS, you can claim a maximum tax exemption of Rs 150,000. What are Tax saving mutual funds / ELSS ?ĮLSS stands for Equity Linked Saving Scheme where investors get tax exemption under section 80C of the Income Tax Act of 1961.

What are Tax Saving Mutual Funds / ELSS?.

Before we going to know about tax saving funds, let us understand what are mutual funds: With the rising popularity of these tax saving mutual funds, retail investors have started moving away from traditional tax saving mutual funds like 5-year Bank FD, PPF, NSC etc.īut before you invest your hard-earned money in these tax saving mutual funds, it is necessary for you to have a clear understanding on how these tax saving mutual funds work. Out of these, ELSS, popularly known as Tax saving mutual funds is the center of attraction among Indian retail investors. There are hundreds of mutual funds available in the Indian securities markets.