The new financial year is here along with it’s time to start planning your tax saving investments for FY 2024. One of the most popular tax saving instruments available is Equity Linked Savings Schemes or ELSS funds. ELSS funds offer the dual benefit of tax savings as well as potential wealth creation over the long run through equity investments. In this article, we will discuss the top ELSS funds that investors can consider for FY 2024 based on their past performance as well as other factors.
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HDFC TaxSaver
HDFC TaxSaver fund is the largest ELSS fund in India with an AUM of over Rs. 13,000 crores. It has consistently been among the top performers in the ELSS category.
– 10 year return: 14.5%
– 1 year return: 25.7%
– 3 year return: 20.5%
The fund has given positive returns in 9 out of the last 10 years. It follows a diversified investment strategy focusing on large cap companies. HDFC TaxSaver is a good choice for investors looking for stability along with tax savings.
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Axis Long Term Equity Fund
Axis Long Term Equity fund is another large ELSS fund with an AUM of over Rs. 6,000 crores. It has delivered strong as well as consistent returns since its inception.
– 10 year return: 14.7%
– 1 year return: 25.4%
– 3 year return: 20.7%
The fund invests in a mix of large, mid and small cap stocks with a long term investment horizon of 3-5 years. It has consistently outperformed its benchmark index and category average. Axis Long Term Equity is suitable for aggressive investors.
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SBI Long Term Equity Fund
SBI Long Term Equity Fund is managed by SBI Funds Management which is one of the largest fund houses in India.
– 10 year return: 12.5%
– 1 year return: 26.6%
– 3 year return: 18.5%
The fund follows a core portfolio approach focusing on high quality large cap stocks. It has delivered superior risk adjusted returns since inception. SBI Long Term Equity is a good choice for conservative investors.
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Aditya Birla Sun Life Tax Relief 96
Aditya Birla Sun Life Tax Relief 96 is among the top performing ELSS funds in the small & mid cap category.
– 10 year return: 13.5%
– 1 year return: 27.4%
– 3 year return: 20.8%
The fund invests in a mix of large, mid and small cap companies with a small & mid cap bias. It has consistently outperformed its benchmark index over the long term. Suitable for investors with higher risk appetite.
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Mirae Asset Tax Saver Fund
Mirae Asset Tax Saver fund is managed by one of the most consistent performing fund houses in India.
– 10 year return: 13.7%
– 1 year return: 25.3%
– 3 year return: 19.8%
The fund follows a multi cap investment strategy focusing on strong growth companies. It has delivered superior risk adjusted returns since inception. Mirae Asset Tax Saver is a good all season ELSS fund.
Conclusion
The above 5 ELSS funds have consistently delivered superior returns over the long term while also providing the tax benefits. Investors can consider investing in one or more of these funds for FY 2024 based on their risk profile and investment horizon to create long term wealth in a tax efficient manner. Always remember mutual funds vs sip are subject to market risks so have a holding period of at least 5-7 years for the best results.
