5 ELSS Mutual Funds with 1 Year Return up to 55%

Best ELSS Mutual Funds with 1 Year Return up to 50percent5 ELSS Mutual Funds with 1 Year Return up to 55%


ELSS Mutual Funds (Tax Saving funds) have been underperforming in the past few years compared to other equity funds. Some of the ELSS mutual funds in the last 1 year gave up to 55% returns. Due to bull run, several ELSS mutual funds have come into the limelight now (good or bad). If you are planning to invest in tax saving mutual funds in 2021, you should invest in consistent performing ELSS funds. Which are the Top 5 ELSS Mutual Funds of 2021 that gave up to 55% returns in the last 1 year? Are these tax saving mutual funds consistent performers or just came to limelight only now in this bull run?

Also Read: Top 15 Best SIP Mutual Funds for 2021

What are ELSS Mutual Funds?

Equity Linked Saving Schemes (ELSS) mutual funds also termed as Tax Saving mutual funds would provide an income tax exemption u/s 80c to Rs 1.5 Lakhs along with providing regular mutual fund benefits. These funds would invest in equity and debt based on the investment objective of the fund.

List of Top 5 ELSS Mutual Funds with 1 Year Return up to 55%

While checking for top ELSS funds, we have excluded funds which were launched <=3 years. This way the comparison of annualized returns and consistent performers can be further filtered to the maximum extent of 7 years. Here are the list of top performing ELSS mutual funds in 2021 that gave up to 55% returns.

#1 – Quant Tax Fund – 1 Year return – 55% returns

#2 – BOI Axa Tax Advantage Fund – 1 Year return – 37% returns

#3 – Canara Robeco Equity Tax Saver Fund – 1 Year return – 32% returns

#4 – Mirae Asset Tax Saver Fund – 1 Year return – 25% returns

#5 – Axis Long Term Equity Fund – 1 Year return – 25% returns

5 ELSS Mutual Funds with 1 Year Return up to 55% – Detailed View

Now let us get into more information about these top performing ELSS funds in 2020.

#1 – Quant Tax Fund – 1 Year return – 55% returns

The scheme aims to generate capital appreciation by investing predominantly in equity shares with growth potential. The secondary objective is to give dividend and other income.

This fund gave 1 Year return of 55% against the ELSS overall benchmark return of 22%.

If one would have invested Rs 1,000 per month through SIP, the investment would have been Rs 12,000 and the value would have grown to Rs 17,600.

This fund currently invests 18% in health care, 13% in construction, 11% in chemicals, 9% each in FMCG and Services sector etc. Its top holdings are Stylam Industries, Sun Pharma, Bharti Airtel, Majesco, ACC, PTC India Financial, Dalmai Bharat, ICICI Lombard, Adoni Ports, Aurobindo Pharma, Ramco Cements, Jindal Steel etc.,

Our view: This fund gave 18% annualized returns in the last 5 years and 11% annualized return in the last 10 years. Since inception, it has given 13.6% annualized returns. From rolling returns point of view, it is able to beat the majority of its peers as well as its benchmark for 1 years, 2 years, 3 years and 5 years and is in top 5. However, it stood in 8th position if we take 7 years rolling returns. Majority of its performance is due to its portfolio towards healthcare, construction and chemical sector which performed well in 2020. Considering superb performance in the last 5 years and consistently beating its peers and benchmark, this can be considered as one of the Best ELSS mutual funds to invest in 2021.

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#2 – BOI Axa Tax Advantage Fund – 1 Year return – 37% returns

The scheme seeks to build a diversified portfolio of stocks of companies having sustainable business models, without any bias of market capitalisation and sector. The scheme will follow top-down approach of equity selection.

This fund gave 1 Year return of 37% against the ELSS overall benchmark return of 22%.

If one would have invested Rs 1,000 per month through SIP, the investment would have been Rs 12,000 and the value would have grown to Rs 15,900.

This fund currently invests 28% in financial, 15% in health care, 15% in chemicals, 11% in technology, etc. Its top holdings are HDFC Bank, Reliance Industries, PI Industries, Kotak Mahindra Bank, ICICI Bank, Infosys, Divis Labs, Navin Flouroine, SRF etc.,

Our view: This fund gave 15% annualized returns in the last 5 years and gave 12% annualized return in the last 10 years. Since inception, it has given 18.5% annualized returns. From rolling returns point of view, it is able to beat the majority of its peers as well as its benchmark for 1 years and 2 years only. However, for 3 years, 5 years and 7 year period, it stood at 7th and 8th position. Interestingly, this fund historical performance indicates that it has superior performance every 2 or 3 years. Means year-1 could be superbly performed, but year-2 could be pathetic and year-3 is better performance, etc.,  We could see such pattern especially when the underlying stocks are majorly from financial, healthcare and technology sectors. Hence, if you are willing to invest in such ELSS funds, you can expect good returns say every 3 year cycle. E.g. 3 years or 6 years or 9 years. Otherwise, stay away from such funds.

#3 – Canara Robeco Equity Tax Saver Fund – 1 Year return – 32% returns

The scheme seeks to achieve long term capital appreciation by predominantly investing in equities. It also offers tax benefits under Section 80C. The investments may be made in primary as well as secondary markets and scheme may also invest in overseas equity markets like ADRs/GDRs.

This fund gave 1 Year return of 32% against the ELSS overall benchmark return of 22%.

If one would have invested Rs 1,000 per month through SIP, the investment would have been Rs 12,000 and the value would have grown to Rs 15,700.

This fund currently invests 30% in financial, 20% in technology, 10% in chemicals, 9% in automotive, 6% each in healthcare and cons durables etc. Its top holdings are Infosys, ICICI Bank, HDFC Bank, Bajaj Finance, TCS, Reliance, Asian Paints, Divis Labs, SBI, HCL Technologies, Voltas, Hindalco etc.,

Our view: This fund gave 14% annualized returns in the last 5 years and gave 13% annualized return in the last 10 years. Since inception, it has given 15% annualized returns. From rolling returns point of view, it is able to beat the majority of its peers as well as its benchmark for 1 years and 2 years and is in top 3. However, it stood between 6th and 9th position if we take 3 years, 5 years and 7 years rolling returns. Its last 3 years returns majorly came only in 2020. Hence we can conclude that there are better funds in ELSS segment.

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#4 – Mirae Asset Tax Saver Fund – 1 Year return – 25% returns

The scheme seeks to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related instruments.

This fund gave 1 Year return of 25% against the ELSS overall benchmark return of 22%.

If one would have invested Rs 1,000 per month through SIP, the investment would have been Rs 12,000 and the value would have grown to Rs 15,900.

This fund currently invests 37% in financial, 11% in technology, 11% in Energy, 9% in FMCG etc. Its top holdings are Infosys, ICICI Bank, HDFC Bank, Axis Bank, TCS, Bharti Airtel, Reliance etc.

Our view: This fund gave 18% annualized returns in the last 5 years. Since inception, it has given 18.6% annualized returns. From rolling returns point of view, it is able to beat all its peers as well as its benchmark for 2 years, 3 years, 5 year period and is on top 1. However, it stood in 9th position if we take 1 year rolling returns. If we look at discretion period, it clocked 12%+ returns for 4 out of 5 years. Hence we can conclude it is consistent performing ELSS mutual fund scheme where one can invest in 2021.

#5 – Axis Long Term Equity Fund – 1 Year return – 25% returns

The scheme aims to generate regular long term capital growth from a diversified portfolio of equity and equity related securities. The Scheme Will invest in companies with strong growth & a sustainable business model.

This fund gave 1 Year return of 25% against the ELSS overall benchmark return of 22%.

If one would have invested Rs 1,000 per month through SIP, the investment would have been Rs 12,000 and the value would have grown to Rs 15,600.

This fund currently invests 37% in financial, 12% in services, 11% in technology, 9% in automotive, 8% in health care, etc. Its top holdings are  Bajaj Finance, HDFC Bank, TCS, Kotak Bank, Info Edge, Nestle India, HDFC, Maruti Suzuki, Avenue Supermarts, Divis Labs, Pidilite industries etc.,

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Our view: This fund gave 14% annualized returns in the last 5 years and 16% annualized returns in the last 10 years. Since inception, it has given 17.7% annualized returns. From rolling returns point of view, it is able to beat the majority of its peers as well as its benchmark for 1 year, 2 years, 3 years, 5 years and 7 year period and is in top 5. If we look at discretion period, it clocked 14%+ returns for 7 out of 10 years. Hence we can conclude that even this ELSS Tax saving mutual fund is a consistent performer where one can invest in 2021.

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Suresh KP

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