An ELSS is an Equity Linked Savings Scheme, which is a type of mutual fund where investors get tax benefits up to Rs. 1.5 lakhs under Sec 80C of Income Tax Act, 1961. These schemes have a lock-in period of three years so they compete with other instruments like the Public Provident Funds(PPF), National Savings Certificate(NSC), National Pension Scheme(NPS), a tax-saving fixed deposit, etc for a share of the tax conscious investor’s wallet.
We are all at the end of FY 21-22, now our aim is to save tax as much as possible as well as to create some wealth. Analyzing the last few years we have selected some best ELSS mutual funds in 2022 which have very good past record of performance.
In last one year, the fund ranked 3rd among peer companies. This fund is suitable for them those who want to invest at least for 3 to 5 yrs. The scheme was launched 31st March 1993 by Canara Robeco Mutual Fund House, which has a very good past performance record. The fund has invested 96.61 % in Indian stocks. In this current year on 17th Jan 22, the fund has reached its top 659.61 ( 27.85%) against benchmark (S&P BSE 500 TRI) 30715.19 (26.61%) which shows a manageable performance.
If we analyze the last 3 years performance the absolute return was 43%. On 10th Jan 22 the fund has given 26.60% against benchmark 22.13% clearly beaten the benchmark. On 30th march 2020, fund has given negative return -14.97% against benchmark -24.35%.
In last 5 years performance the absolute return was 62%.
10th Jan 22 the fund position was 654.82 (20.63%) and the benchmark was 30479.98 (17.33%) clearly beaten the benchmark consistently. In lower side 30th march 2020 the position of scheme was 281.94 (2.18%) and the benchmark position was 12841.46(-2.91%). The scheme shows a clear advantage performance over benchmark.
As the scheme is very old if we analyze the last 7 years performance on 10th Jan 22 the fund position was 654.82 (14.17%) against benchmark (13.25%) clearly beaten the benchmark and shows a long term out performance. In the lower side 22nd Feb 2016 the value was 209.06 (-20.89) and the benchmark position was 10581.41(-18.63%)
Last 5 year schem’s high average was 454.98 and the low average was 329.40 and its benchmark’s high average was 22323.12, low average was 16259.77
Range of fund 125.58 and the range of benchmark 6063.35
If we look at the peer comparison analyzing the last five year return the fund has given 16.85% return which is above the average side.
In last 5 year SIP annualized return 15.76% and the absolute return 128.26%
In the risk measurement factor the fund shows the Sharpe ratio 0.94% and the bench mark shows Sharpe 0.72% and the standard deviation of fund 20.17% on the other side the benchmark standard deviation is 22.07% it shows the steadiness of the fund.
The Canara Robeco Equity Tax Saver Fund managed by Shridatta Bhandwaldar BE (Mechanical) and MMS (Finance).Before joining to Canara Robeco Mutual Fund he was associated with SBI Pension Funds Pvt. Ltd. NPS fund (Jul 2012-Jun 2016) as Head-Research, Heritage India Advisory Pvt. Ltd. He also managed fund like Canara Robeco Equity Hybrid Fund RP (G) which has given 62.6% in 3yrs. Canara Robeco Blue Chip Equity Fund D(G) which has given 69.8% in 3 yrs.
Another fund manager Mr. Vishal Mishra also joined in this fund since 28th June 2021 B. Com, A.C.A. Currently he is associated with Daiwa Asset Managment Pvt Ltd for the past four years.
This fund was launched 28th Dec 2015 by MIRAE ASSET MUTUAL FUND. The aim behind this fund to generate long term capital appreciation. Investor who invest at least for five years can beat the volatility of the market. It is also a tax benefitted fund.
In the last one year on 18th Oct 2021 it shows highest value 33.01 (27.47%) and the benchmark ( NIFTY 500 TRI) value was 30897.82 (27.36%) marginally ahead of benchmark. On 25th March 2021 the fund shows its lowest position 24.75 (-4.42) and the lowest benchmark 23197.35 (- 4.38%).
If we analyze the last 3 year performance on 10th Jan 22 the fund shows highest 32.60 (26.11%) on that day bench mark was 30479.98 (22.13%) clearly beaten and out perform. In the lower side the fund show on 23rd March 2020 13.19 (-20.62%) and the benchmark on that particular date was 12841.46(-24.35%) which shows below the benchmark position.
From the last 5 years analysis we can see on 10th Jan 22 the fund was 32.60 (21.10%) at that particular date the benchmark was 30479.98 (17.33%) the picture shows the fund out performed and well ahead.
Last five years scheme higher average is 22.80 and the lower average is 16.38, the benchmark higher average 22242.21 and the lower average 16249.58 almost parallel to benchmark.
From the last five years analysis we can see the range of fund 6.42 and the bench mark range for the similar period was 5992.62
Last five years peer comparison the percentage of return by Mirae Asset Tax Saver Fund was 17.32% ahead of peers average.
Rank among the peer companies as per 1 year the funds stands in 4th position.
In the risk measurement category the fund show Sharpe ratio 0.84 % and the bench mark Sharpe ratio was 0.72, standard deviation of the fund was 22.25 and the benchmark standard deviation was 22.07 which show stability of the fund.
The funds five year SIP annualized return 17.80% and absolute return 55.86%
Mr. Neelesh Surana B.E (Mechanical) and MBA in Finance. Before to joining Mirae Asset AMC he has worked with ASK Investment Managers Pvt Ltd. Mr. Surana has 26 years experience of equity research and portfolio management.
All the information are used for education purpose only. Investing in mutual funds poses a risk of financial losses. Investors must therefore exercise due caution. InvestoAxis is not liable or responsible for any losses caused as a result of decisions based on the article.