Axis Long Term Equity Fund, the largest scheme in the ELSS category based on assets managed, gave 12.11%. The scheme failed to beat its benchmark (NIFTY 500 – TRI) which offered 12.86%. The scheme manages assets worth Rs 31,886.84 crore.
Mirae Asset Tax Saver Fund gave 14.53% and it managed to beat its benchmark (NIFTY 500 – TRI). SBI Long Term Equity Fund, the topper in the category, gave 22.64% in 2023, and managed to beat its benchmark (S&P BSE 500 – TRI).
Aditya Birla Sun Life ELSS Tax Relief 96 gave the lowest return of around 9.29% in 2023 and failed to beat its benchmark (NIFTY 500 – TRI). The scheme manages assets worth Rs 14,173.85 crore. Nippon India Tax Saver (ELSS) Fund offered 14.04% and managed to beat its benchmark (NIFTY 500 – TRI). The scheme manages assets of Rs 12,734.01 crore. Toppers in the category offered more than more than 20% in 2023 so far. SBI Long Term Equity Fund and Samco ELSS Tax Saver Fund gave 22.64% and 20.84% respectively. Three schemes gave single digit returns. PGIM India ELSS Tax Saver Fund, Shriram Long Term Equity Fund, and Aditya Birla SL ELSS Tax Relief 96 gave 9.86%, 9.46%, and 9.29% respectively.
Quarterly performance
ETMutualFunds also analysed the performance of ELSS schemes during July-September quarter in 2023. There were 39 schemes in the ELSS category. Around 24 schemes managed to beat their respective benchmarks, and 15 schemes failed to beat their respective benchmarks. Around 37 schemes offered single-digit returns and two schemes gave double digit returns.
Only Samco ELSS Tax Saver Fund and Bank of India Tax Advantage Fund gave double-digit returns. The schemes offered 10.70% and 10.47% respectively. Axis Long Term Equity Fund offered the lowest return of around 1.30% return during July-September quarter in 2023.
The actively-managed ELSS schemes are benchmarked against NIFTY 500 – TRI, S&P BSE 100 – TRI, and S&P BSE 500 – TRI. These benchmarks gave 5.57%, 3.18%, and 5.49% respectively.
Note, the above exercise is not a recommendation. The purpose of this exercise was just to find out how ELSS or tax saving schemes performed in 2023 so far. One should not make investment or redemption decisions based on the above exercise. One should always choose schemes based on risk appetite, investment horizon and goal. Past performance does not guarantee future returns.
We considered the regular and growth options.
Tax saving or ELSS schemes are recommended to investors who are looking to save taxes under Section 80C of the income tax Act. Investors can invest a maximum of Rs 1.5 lakh in these schemes and claim tax deductions on it in a financial year. ELSS funds come with a lock-in period of three years.
If you are looking for recommendations, see: Best tax saving mutual funds or ELSS to invest in 2023.
