Swapnil Suvarna recommends five ELSS equity funds for your investors which are the best in the category. These funds have proved their stability and consistency in terms of performance across various periods
As the tax season approaches, your clients will be planning to park their savings in various investments instruments which offer tax benefits under Section 80C of the Income Tax Act. Keeping this in mind, we have identified five best ELSS funds for your investors which will generate decent returns over the lock-in period of three years and restrict losses in the phase of downturns.
Franklin India Taxshield (Benchmark: S&P CNX 500)
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Fund Managers: Anand Radhakrishnan and Anil Prabhudas
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Invests mainly in large-caps bringing stability to the portfolio and in diverse quality mid-caps that are reasonably valued.
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Over the years, the fund has delivered good steady returns across various market cycles and has contained losses better then the benchmark during the downturn.
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Smart contrarian bets have brought stability in portfolio at times of uncertainty.
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Management has shown conviction in the quality of portfolio and arrested losses in a bearish phase.
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Predominantly follows a buy and hold strategy.
HDFC Long Term Advantage (Benchmark: BSE Sensex)
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Fund Managers: Chirag Setalvad and Miten Lathia
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Predominantly focuses on investing in diverse quality index equities that are reasonably valued and in promising mid-cap growth companies that are below fair value.
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Management has shown confidence in their stock selection which has enhanced the fund performance in the long-run across various market cycles.
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High on quality and liquidity accompanied by a strategy of systematic profit booking.
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Consistently outperformed its benchmark across various market cycles.
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Major holding in promising large-caps brings stability to the portfolio and minimizes loses in an uncertain market.
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Index heavy weights accounts 50 percent of the portfolio.
ICICI Prudential Tax Plan (Benchmark: S&P CNX 500)
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Fund Manager: Chintan Haria
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Even though mid-caps account for 50 percent of the portfolio, the fund has contained losses against the benchmark during the downturn.
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Maintains a diverse contrarian portfolio that is high on quality and liquidity.
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Across various market cycles, the fund has outperformed its benchmark consistently.
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Over the years, the stability in performance has proved management’s ability to identify promising mid-caps and generate reasonable returns.
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Primarily invests in large- and mid-cap stocks based on fundamental analysis and research.
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Invest in promising mid-caps from new blooming sectors and those that have the ability to gain by changes in business environment.
Religare Tax Plan (Benchmark: BSE 100)
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Fund Managers: Vetri Subramaniam and Vinay Paharia
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50 percent of the portfolio consists of stocks from the benchmark while the remaining is made up of promising businesses from the mid-cap space.
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Disciplined diversification of the portfolio has minimized risk which is reflected in its performance.
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Follows a buy and hold strategy but at times pursues systematic profit booking of promising smaller companies identified at attractive valuations.
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Fund managers have proved their ability to identify good picks thus generating impressive returns across various market cycles. They have also shown excellent downside protection.
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Invests mainly in large- and mid-cap space across various sectors through bottom-up approach
Fidelity Tax Advantage (Benchmark: BSE 200)
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Fund Manager: Sandeep Kothari
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Portfolio has always been high on quality and liquidity. Avoids chasing momentum picks.
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Shown good downside protection against the benchmark and has also been the quickest to participate in market rallies.
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Consistently outperformed its respective benchmark index across various market cycles.
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Management has always maintained an active aggressive portfolio with low business risk which is reflected in the performance across various market cycles.
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Focuses on investing in quality growth companies that are reasonably valued which are identified through a bottom-up approach.
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Maintains a portfolio of more than 50 stocks with quality large-caps accounting for more than 60 percent and emerging mid caps accounting for the rest.
