There were 39 schemes in the ELSS category. All the schemes in the category were in green. SBI Long Term Equity Fund offered the highest return of around 12.64%, followed by JM Tax Gain Fund (12.26%). Quant Tax Plan offered the lowest return of 2.08%.
Quarterly performance
During April-June quarter in 2023, all the schemes in the ELSS category managed to offer double-digit returns. The category offered an average return of around 12.56%. During the same period, the benchmark indices, NIFTY 500 – TRI, S&P BSE 500 – TRI, and S&P BSE 100 – TRI, offered around 13.25%, 13.18%, and 11.84% respectively.
During the quarter that ended in June, Axis Long Term Equity Fund, the topper in the category, offered around 16.86% returns, followed by JM Tax Gain Fund which offered 16.21%. Taurus Tax Shield Fund offered the lowest return of around 9.80%. Around 37 schemes out of 39 schemes offered more than 10% return in the quarter that ended in June.
During January-June 2023, out of 39 schemes, 31 schemes outperformed their respective benchmarks. During April-June, out of 39 schemes, 12 ELSS schemes managed to beat their respective benchmarks. However, 12 schemes outperformed their respective benchmarks in both the horizons.
As per AMFI data, during January-May 2023 (last available data), the ELSS category received a total inflow of Rs 4,637.28 crore. The asset under management for ELSS category as on May 31,2023 was Rs 1.63 lakh crore. Note, the above exercise is not a recommendation. The main purpose of this exercise is just to find out how ELSS schemes performed in the first half of 2023. 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.
We considered the regular and growth options. The returns for January to June 2023 were calculated from January 2,2023 to June 30,2023. The quarterly returns for the quarter that ended in June 2023 were calculated from April 3, 2023 to June 30, 2023.
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
