Best ELSS Mutual Fund to Invest in 2021
The Best time to
invest in ELSS Mutual fund is at the start of the Financial Year. Start your SIP
in an ELSS fund in April instead of waiting for the Last Quarter.
What is ELSS Mutual
Fund?
ELSS Mutual fund is
a diversified equity-linked saving scheme (ELSS) that invests in a mix of large-cap, midcap, and small-cap companies. Being an ELSS scheme, the scheme comes
with dual advantages of building wealth and saving tax. They are also known as
Tax Saving Mutual fund. These funds have a 3-year lock-in which is one of the
lowest amongst other tax saving instruments. A 3-year lock-in ensures that the
money stays invested in equities and does not get perturbed by market ups and
downs. Add to it, the fund manager can take much informed decision and look
through the interim volatility.
One of the Best ELSS Mutual fund to Invest in Axis Long Term Equity Fund.
Axis Long Term
Equity Fund
Fund House & Fund Start Date:
Axis Mutual Fund – The Ninth Largest Mutual Fund House in India.
Established – 2009
Fund Start Date - December 29, 2009
This Fund is managed by Axis Mutual Fund and it is their biggest Equity fund
and hence has the largest focus from the fund house.
Now let us look at the Returns.
As shown above, Fund’s trailing return performance is pretty good. It has beaten the benchmark in 5-year, 3- year, and 1-year period. Fund’s performance
in 7 years (not shown in above) is also better than the benchmark.
Axis Long Term Equity fund has a high allocation to Large-cap Companies. Around 83%.
Looking at Standard Deviation & portfolio Beta (a measure of Risk), the fund is clearly a lower risk fund. This is very good and could be due to a relatively higher allocation to large caps compared to other funds.
The sector allocation chart shows the fund’s high concentration on Financial Sector. Almost all ELSS funds are bullish on financial sector.
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| Source: www.axismf.com |
Long Term Equity
Fund has been in hands of Mr. Jinesh Gopani since almost 8 years now. This fund
is performing very well since joining of Mr. Jinesh.
Summary:
- Fund is the
largest ELSS fund in the category.
- Fund’s overall
return performance can be said very good and consistently above benchmark.
- The fund is overall a
low risk and moderately high return fund.
- Managed by a good and experienced fund Manager.
- Overall a must
have fund in your ELSS shortlist.
Bonus Tips to Keep in Mind while investing in ELSS Mutual fund:
- Equities need five-seven years to show good returns, so don't pull your money out as soon as the lock-in ends after three years.
- If you want a less volatile fund, go with one that is large-cap oriented.
- Choose a good fund and stick to it year after year instead of betting on a new fund every year.
- Choose a consistent performer instead of the current top performer.
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