Tax savings takes a prominent place when it comes to financial planning. There are many instruments available in the market, which will save your Rs 1.50 Lac under Section 80C of Income Tax Act, 1961. But Equity Linked Savings Scheme offers the shortest lock-in period and high returns than that of other instruments. Therefore, the financial analysts of MySIPonline have brought you the best ELSS schemes of 2018.
These tax savings schemes are selected on the basis of consistent returns, portfolio allocation, downside risk, rolling returns, etc. The details of funds are provided below:
All these schemes are compared on the basis of their investment philosophies that are being followed by their fund managers. All the details have been researched by the financial experts of MySIPonline, which have been discussed in the article further as under:
1. Axis Long Term Equity Fund (G):
The portfolio of Axis Long Term Equity Fund is formed using the bottom-up approach. The strength to fund is given by investing in sustainable large-cap companies. However, the fund is not limited just to a single cap but invests across the market capitalisation.
The companies constitute in the fund do not include the companies of its benchmark, S&P BSE 200. It also consists of the companies which can provide the competitive returns in the long run.
The fund’s portfolio is invested in the diversified sector, majorly including financial sector. It has been managed by Mr Jinesh Gopani, who picks up the funds through a detailed research process. He tends to invest in the stocks that are slightly expensive but offer long-term growth. All these investment philosophies of Gopani has been working efficiently in the current market situation. Thus, they are providing long-term returns to the investors, as well as a deduction up to the amount of Rs 1.50 Lac under Section 80C of Income Tax Act, 1961.
2. Aditya Birla Sun Life Tax Relief 96 Fund (G)
More than 20 years old fund, Aditya Birla Sun Life Tax Relief 96 ELSS scheme is allocating assets across the market cap. The fund hunts such companies whose predictable earnings are higher than other companies of the industry.
It follows the combination of the top-down and bottom-up approach for selecting the company to invest in. The fund aims at beating the inflation by generating capital growth and giving tax deduction under Section 80C of IT Act, 1961. It offers investors with the twin benefits.
The fund is biased towards quality multinational companies. It invests in such companies who have been managed by professionals and have a strong competitive advantage in providing long-term benefits. A large holding of the fund is in mid-caps constituting different sectors, including healthcare as well as financial and banking as its top investing industries.
3. ICICI Prudential Long Term Equity Fund (Tax Saving) (G)
A large-cap bias scheme, ICICI Prudential Long Term Equity Fund (Tax Saving) keeps churning its portfolio to get the best of various industries. The main aim of continuous change in the stocks is to bring the top companies who can perform well according to different market cycles.
The fund has been managed by Mr George Heber Joseph investing in the companies on the basis of value investing. The fund manager buys the companies who are valued lower and can reach their true value in the future.
The scheme has given a consistent performance but has lagged behind from its benchmark and category average in the past two years. Though, in the long run, the fund has either matched the performance of its peers or has beaten them.
The different strategies of the fund managers worked in different market cycles. Some convictions work, some fail, and all this bring the top performing ELSS schemes to us. For investing in any above-listed funds, you can connect with our experts at MySIPonline.
