Best ELSS mutual funds in ten years: Top 9 schemes beat the benchmark index
Benchmark index is a yardstick against which the performance of a mutual fund is compared. It is considered vital to stay ahead of the performance delivered by the benchmarks for a fund to be called ‘outperforming’. Here we give a lowdown on the ELSS funds and zeroed in on the ones that have managed to beat the benchmark index.
First and foremost, we explain what exactly are equity linked savings schemes (ELSS). Equity Linked Savings Schemes (ELSS) refer to the schemes that invest at least 80 percent of their assets in accordance with Equity Linked Savings Scheme, 2005, notified by the Ministry of Finance. Importantly, these funds have a lock-in period of three years and are eligible for income tax deduction under section 80C of the Income Tax Act up to ₹1.5 lakh.
There are 42 schemes under the category of ELSS with net assets under management (AUMs) of ₹1,79,802 crore. They have the highest number of folios among all equity-oriented schemes i.e., 1.54 crore. The ELSS schemes which could beat the benchmark index include the following: (Source: AMFI, returns as on Oct 19, 2023) Here we give a lowdown on the top performing ELSS: 1.
Quant Tax Plan: The Quant Tax Plan Growth was launched on March 8, 2000 and has an AUM of ₹4,605 crores. The fund has a present cash holding of 3.22%. The key constituent stocks of the fund include Reliance Industries, HDFC Bank, NTPC & DLF.
2. Bandhan Tax Advantage (ELSS) Regular Fund: It was launched on Dec 26, 2008 and has delivered a return of 18.23 percent since inception. The key constituent stocks are ICICI Bank, HDFC Bank, RIL, Triparty Repo and Axis Bank.
The fund has an AUM of ₹5,073 crore. 3. JM Tax Gain Fund: It was launched on March 31, 2008 and has delivered an annualised return of
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