Best Elss Mutual Funds for Tax Saving Investments Currently| Latest News!

As the conclusion of the tax-saving season approaches, it is expected that ELSS funds will experience a significant increase in inflows.

These funds have the greatest potential for wealth building over the long term of all the tax-saving strategies available.

However, not all funds live up to this promise, so investors should carefully examine the fund’s track record before making a decision to invest.

We took a closer peek under the hood to see how the ELSS funds had performed.

In order to evaluate the funds’ track record, we looked at the degree to which they were consistent in beating the index,

as revealed by rolling returns, as well as the fund’s downside performance, as revealed by the downside capture ratio, among other things.

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The time period under consideration for this study is between three and five years.

In order to calculate the rolling return, we looked at the funds’ performance across three-year time frames that were rolled daily over the previous five years, as well as over five-year time frames that were rolled daily for the previous seven.

The downside capture is taken into account during the last three and five years, respectively.

A low downside capture ratio indicates that the fund has been successful in limiting the degradation of the fund’s value during a down market.

In the long run, when a fund maintains this level of consistency, it will have a strong foundation on which to build its performance.

Only a few ideas stand out from the others, according to our examination of this basket.

Best Elss Mutual Funds

Best Elss Mutual Funds for Tax Saving Investments Currently

1. Canara Robeco Equity Tax Saver (Canara Robeco Equity Tax Saver)

Since its inception, this fund, managed by Shridatta Bhandwaldar, has had a near-perfect track record of outperforming its benchmark index year after year.

Since 2010, it has outperformed the index on 100 percent of the occasions over three-year time frames encompassing the previous five years.

Even over longer periods of time, the fund has outperformed its benchmark index 99.6 percent of the time.

The fund maintains a moderately diversified portfolio, with a significant emphasis on quality as the primary investment objective.

Companies with weak balance sheets or that are over-leveraged are avoided by the mutual fund.

That has assisted in limiting drawdowns, as evidenced by the company’s own capture ratios, which are among the lowest in the industry over both three and five-year time frames.

This enables it to comfortably outperform across cycles, despite having a lower upside capture than the index on a relative basis.

In the meantime, its standard deviation (19.9 and 17.35) across these time periods is similarly within acceptable limits.

2. Mirae Asset Tax Saver (also known as Mirae Asset Tax Saver)

With a very short track record (it was created in 2015), the fund has nonetheless solidified its credentials in such a short period of time under the stewardship of Neelesh Surana’s leadership.

Over a five-year period, three-year returns were rolled up daily to indicate that this fund outperformed its benchmark index on 100 percent of the occasions.

Over five-year time frames, the fund has averaged a spectacular 21 percent return since inception, making it the best performer in its category.

In comparison, over the same time period, its index has averaged 12 percent growth.

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Despite the fact that the fund is not among the best when it comes to downside protection, it outperforms its index over both time periods.

What distinguishes it from the competition is its greater upside capture (107.08 and 106.34) when compared to its contemporaries.

Even though several of its rivals have shown lower standard deviations, its standard deviation is in line with its index, at 21.95 and 18.90 points, respectively.

3. Axis Long-Term Equity Investment

This fund, which has the largest asset base in this category with Rs 33,785 crore in assets, has seen a recent decline in its return profile, but it continues to be one of the best performers.

This tiny fund, which is managed by Jinesh Gopani, has outperformed its benchmark index 95 percent of the time over three-year time horizons and 85 percent of the time over five-year time horizons.

Because of its strong quality bias and tactical cash calls, the fund has had a good adverse performance in recent years.

Over the past three and five years, it has absorbed slightly about 90 percent of the falls in the Dow Jones Industrial Average.

This has placed the fund in a solid position, despite the fact that it has captured less market gain than many of its counterparts.

With standard deviations of 20.38 and 18.01, it has likewise demonstrated lower volatility than the index during both time frames compared to index.

BOI AXA Tax Advantage is number four on the list.

This Rs 546 crore fund, which is managed by Aakash Manghani, has been performing well above its weight for a number of years.

It takes a different approach than most of its peers, investing a significant portion of its portfolio in midcap companies.

When looking at five-year time frames, it has a strong track record, having defeated its index opponent 100 percent of the time in the last seven years.

Furthermore, across three-year time frames, it has had a strong track record, outperforming the index in 78 percent of cases during the last five years.

With only 75 percent and 87 percent of the index’s falls, respectively, it has had a notable decline in its performance.

An increase in upside capture has been included to provide a more well-rounded performance over the market cycle, as shown in the chart.

This has helped the fund rank in the top percentile throughout both time spans. This performance was achieved without the presence of significant volatility, as seen by standard deviations of 20.14 and 19.11.

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