Fund Name |
---|
quant Elss Tax Saver Fund |
Motilal Oswal ELSS Tax Saver Fund |
Sbi Long Term Equity Fund |
JM ELSS Tax Saver Fund |
Hdfc Taxsaver |
Bank of India ELSS Tax Saver |
The table below shows the return performance of ELSS funds.
Fund Name | 5Y XIRR | 5Y XIRR Percentile | 3Y XIRR | 3Y XIRR Percentile | 1Y XIRR | 1Y XIRR Percentile | 1Y Return | 3Y Return | 5Y Return |
---|---|---|---|---|---|---|---|---|---|
quant Elss Tax Saver Fund | 33.88 | 100.00 | 27.34 | 72.73 | 17.02 | 17.5 | 43.93 | 22.25 | 33.61 |
Motilal Oswal ELSS Tax Saver Fund | 32.46 | 96.97 | 39.67 | 100.00 | 49.99 | 100.0 | 65.97 | 25.83 | 24.73 |
Sbi Long Term Equity Fund | 30.91 | 93.94 | 34.61 | 96.97 | 31.24 | 85.0 | 52.67 | 24.33 | 25.51 |
JM ELSS Tax Saver Fund | 28.03 | 90.91 | 30.89 | 93.94 | 33.47 | 92.5 | 50.79 | 19.70 | 22.93 |
Hdfc Taxsaver | 28.00 | 87.88 | 29.46 | 87.88 | 27.28 | 70.0 | 44.05 | 22.18 | 21.95 |
Bank of India ELSS Tax Saver | 27.94 | 84.85 | 28.60 | 81.82 | 22.31 | 40.0 | 46.77 | 19.29 | 26.62 |
DSP ELSS Tax Saver Fund | 27.12 | 81.82 | 28.83 | 84.85 | 32.04 | 87.5 | 47.69 | 19.14 | 23.02 |
Franklin India ELSS Tax Saver Fund | 26.75 | 78.79 | 27.67 | 75.76 | 26.32 | 65.0 | 41.48 | 18.79 | 21.75 |
ITI ELSS Tax Saver Fund | 25.89 | 75.76 | 30.88 | 90.91 | 25.69 | 62.5 | 48.56 | 19.44 | 20.94 |
Parag Parikh ELSS Tax Saver Fund | 25.83 | 72.73 | 24.63 | 54.55 | 24.59 | 57.5 | 33.76 | 18.97 | 24.56 |
The table below shows the risk and risk-adjusted performance of ELSS funds.
Fund Name | Sharpe Ratio | Sortino Ratio | Treynor Ratio | Standard Deviation | Semi Deviation | Max Drawdown | Average Drawdown | VaR 1Y |
---|---|---|---|---|---|---|---|---|
quant Elss Tax Saver Fund | 1.07 | 0.56 | 0.16 | 15.47 | 10.96 | -12.73 | -6.91 | -19.99 |
Motilal Oswal ELSS Tax Saver Fund | 1.33 | 0.76 | 0.19 | 13.91 | 9.56 | -15.66 | -7.55 | -13.82 |
Sbi Long Term Equity Fund | 1.44 | 0.78 | 0.20 | 13.49 | 9.76 | -10.25 | -5.44 | -12.35 |
JM ELSS Tax Saver Fund | 1.04 | 0.59 | 0.15 | 13.97 | 9.53 | -14.82 | -5.92 | -13.70 |
Hdfc Taxsaver | 1.48 | 0.85 | 0.20 | 11.46 | 8.10 | -6.28 | -3.44 | -11.74 |
Bank of India ELSS Tax Saver | 0.88 | 0.48 | 0.12 | 14.29 | 9.94 | -16.59 | -5.05 | -15.72 |
DSP ELSS Tax Saver Fund | 1.01 | 0.55 | 0.14 | 13.13 | 9.15 | -11.23 | -5.61 | -14.43 |
Franklin India ELSS Tax Saver Fund | 1.10 | 0.57 | 0.15 | 12.59 | 9.06 | -11.97 | -5.38 | -13.26 |
ITI ELSS Tax Saver Fund | 0.98 | 0.57 | 0.14 | 12.70 | 8.45 | -17.77 | -9.24 | -11.90 |
Parag Parikh ELSS Tax Saver Fund | 1.25 | 0.69 | 0.18 | 9.62 | 6.83 | -7.38 | -2.48 | -11.40 |
Investing in Equity Linked Savings Schemes (ELSS) is a popular choice for investors seeking both wealth creation and tax benefits. ELSS mutual funds, as part of Section 80C of the Income Tax Act, allow investors to save on taxes while potentially enjoying the high growth associated with equity investments. In this post, we explore the top ELSS funds based on their 5-year XIRR, focusing on funds that have consistently delivered strong returns and maintained favorable risk metrics. This approach helps ensure that our selections offer not only high returns but also reasonable risk management.
The 5-year XIRR (Extended Internal Rate of Return) provides an accurate, annualized return metric over five years, offering insight into a fund's performance over a meaningful period. This selection criterion is especially relevant for ELSS funds, which come with a mandatory three-year lock-in period. By assessing the 5-year XIRR, we can identify funds that have weathered market fluctuations over a longer period, proving their resilience and growth potential.
Here’s a breakdown of the top ELSS funds, with a detailed look at each fund’s return performance, risk characteristics, and what makes them stand out.
Quant ELSS Tax Saver Fund is a top performer with a remarkable 5-year XIRR of 33.88%, positioning it as one of the best options in the ELSS category. The fund’s Sharpe Ratio of 1.07 indicates that it provides solid risk-adjusted returns. While the standard deviation of 15.47% reflects moderate volatility, the max drawdown of -12.73% reveals its ability to minimize losses during downturns, making it a resilient choice for investors seeking high growth with manageable risk.
Motilal Oswal ELSS Tax Saver Fund is another standout with a 5-year XIRR of 32.46%. Its Sharpe Ratio of 1.33 highlights efficient risk management, and with a standard deviation of 13.91%, the fund has shown controlled volatility in comparison to other high-return funds. Although the max drawdown is slightly higher at -15.66%, this fund’s superior risk-adjusted returns make it a robust choice for those looking to balance growth with stability.
SBI Long Term Equity Fund ranks high with a 5-year XIRR of 30.91%. Its high Sharpe Ratio of 1.44 underscores its effectiveness in delivering strong returns relative to its risk. The standard deviation of 13.49% and max drawdown of only -10.25% make this fund suitable for investors with moderate risk tolerance who seek consistent performance. This fund is well-suited for those who prioritize stable returns with limited downside risk, adding an element of security to long-term investments.
JM ELSS Tax Saver Fund is a high-ranking ELSS option with a 5-year XIRR of 28.03%. While it has a lower Sharpe Ratio of 1.04, its standard deviation is still manageable at 13.97%, which suggests moderate risk. The max drawdown of -14.82% implies that this fund can withstand some market volatility, making it appealing to investors willing to accept slightly higher risk for returns above 25%.
HDFC Tax Saver Fund is an excellent choice for investors with a lower risk tolerance. Its 5-year XIRR of 28.00% is coupled with a high Sharpe Ratio of 1.48, showing a very efficient risk-return profile. With the lowest standard deviation of 11.46% among the top funds and a minimal max drawdown of -6.28%, HDFC Tax Saver is a prudent choice for conservative investors looking to enjoy stable returns with limited downside risk.
To provide a comprehensive evaluation of these funds, we incorporate several key risk metrics:
Sharpe Ratio: Measures risk-adjusted return, with a higher Sharpe Ratio indicating better compensation for risk. Funds like SBI Long Term Equity and HDFC Tax Saver boast high Sharpe Ratios, suggesting their ability to generate superior returns for the risk taken.
Standard Deviation: Reflects the volatility of returns. A lower standard deviation, such as that seen in HDFC Tax Saver, implies lower fluctuation, making it a more stable investment option.
Max Drawdown: Indicates the fund’s largest drop from a peak to a trough, which is crucial for assessing downside risk. Investors looking to avoid large dips may favor funds with lower max drawdowns, like SBI Long Term Equity Fund and HDFC Tax Saver.
Value at Risk (VaR): Provides an estimate of potential loss over a specified period, offering insight into worst-case scenarios. For instance, Quant ELSS has a higher VaR of -19.99%, suggesting a greater potential loss during extreme downturns, whereas HDFC Tax Saver’s VaR of -11.74% is more conservative.
Selecting an ELSS fund is not merely about finding the highest returns but also about understanding the risk associated with those returns. For aggressive investors, Quant ELSS Tax Saver Fund and Motilal Oswal ELSS Tax Saver Fund provide high 5-year XIRRs, though with higher volatility. These funds may appeal to those who prioritize maximizing returns and are comfortable with increased risk.
Conversely, for conservative investors, HDFC Tax Saver stands out with its low volatility and solid returns. Its low standard deviation and max drawdown metrics make it a great choice for risk-averse investors who still want meaningful returns.
Lastly, SBI Long Term Equity Fund strikes a balance between growth and stability, making it an ideal choice for moderate-risk investors aiming for both substantial returns and manageable downside risk.
As with any investment decision, it’s essential to consider your risk tolerance, investment horizon, and overall financial goals. These top ELSS funds offer diverse profiles suited to different investor needs, empowering you to make an informed choice that aligns with your investment strategy and tax-saving goals.