Invest Smart: 11 ELSS Mutual Funds that Outperformed their benchmarks in 3 and 5 Years

ELSS (Equity Linked Saving Scheme), is a type of mutual fund in India that offers tax benefits. ELSS funds are a smart way to save on taxes while investing in the stock market. There are approx. 11 ELSS or tax-saving mutual fund have outperformed their benchmarks over the past three and five years.

11 ELSS Mutual Funds that Outperformers in 3 and 5 Years

• Bank of India ELSS Tax Saver
  
• DSP ELSS Tax Saver Fund
  
• Franklin India ELSS Tax Saver Fund
  
• HDFC ELSS Tax saver
  
• HSBC Tax Saver Equity Fund
  
• JM ELSS Tax Saver Fund
  
• Kotak ELSS Tax Saver Fund
  
• Motilal Oswal ELSS Tax Saver Fund
  
• Quant ELSS Tax Saver Fund
  
• SBI Long-Term Equity Fund
• Parag Parikh ELSS Tax Saver Fund

Bank of India ELSS Tax Saver has outperformed its benchmark (BSE 500 – TRI) over the last three and five years. The scheme delivered a 14.53% CAGR in the past three years and 22.80% in the past five years, compared to its benchmark’s 12.20% and 17.70% CAGR, respectively.

DSP ELSS Tax Saver fund benchmarked against Nifty 500 – TRI, this scheme delivered a 15.36% CAGR in the past three years and 19.77% in the past five years as compared to its benchmark’s 12.30% and 17.66% CAGR.

Franklin India ELSS Tax Saver Fund benchmarked against Nifty 500 – TRI, this scheme gave a 15.36% CAGR in the past three years and 18.80% in the past five years as compared to its benchmark’s 12.30% and 17.66% CAGR.

HDFC ELSS Tax Saver has outperformed its benchmark (NIFTY 500 – TRI) over the last three and five years. The scheme delivered an 18.81% CAGR over three years as compared to the benchmark’s 12.30% and a 19.61% CAGR over five years as compared to the benchmark’s 17.66%.

HSBC Tax Saver Equity Fund and JM ELSS Tax Saver Fund have outperformed their benchmarks at the same time, which delivered a 14.34% CAGR over the last three years and 18.02% CAGR over the past five years.

Kotak ELSS Tax Saver Fund has delivered a 13.03% CAGR over the last three years and 17.71% CAGR over the past five years and outperformed its benchmark in the same period.

Motilal Oswal ELSS Tax Saver Fund gave 21.55% and 21.36% CAGR from the last three and five years. The scheme is benchmarked against Nifty 500 – TRI, which delivered 12.30% and 17.66% CAGR in the last three and five years, respectively.

Quant ELSS Tax Saver Fund has outperformed its benchmark, Nifty 500 – TRI, and delivered 13.87% and 29.37% as compared to the benchmark’s 12.30% CAGR over five years as compared to the benchmark’s 17.70%.

SBI Long Term Equity Fund which is the the oldest ELSS fund, delivered returns of 20.97% CAGR from the last three years and 22.83% from the last five years. This is higher than its benchmark, BSE 500 – TRI, which provided 12.20% and 17.70% CAGR during the same periods.

Parag Parikh ELSS Tax Saver Fund gave returns of 15.01% CAGR from the last three years and 21.69% from the last five years. This is higher than its benchmark, BSE 500 – TRI, which provided 12.30% and 17.66% CAGR during the same time.

The largest ELSS fund based on assets managed, Axis ELSS Tax Saver Fund, did not manage to outperform its benchmark during the same periods.

Tax-saving or ELSS schemes are suggested for investors who want to save taxes under Section 80C of the Income Tax Act. Investors can invest up to Rs.1.5 lakh in these schemes and claim tax deductions in a financial year. Additionally, ELSS funds come with a lock-in period of three years.

Investors always consider their risk appetite, investment horizon, and financial goals before making any investment decisions.