Equity-linked savings schemes (ELSS) are said to be good for investors with a long-term investment horizon. ELSS gives an additional advantage of saving tax u/s. 80C, apart from maximizing growth potential by investing in a portfolio of high-quality stocks.
Investment in an ELSS fund leaves the investor with a disposable surplus (amount of tax saved, Rs 30,900 for highest tax bracket) which, if re-invested, can add substantially to the wealth created.
Here we take a look at some top ELSS schemes on the basis of their performance during the last three years:
Taurus Tax Shield - Growth
Since its inception on March 31, 1996, the fund has shown capacity to generate wealth. Across the time period of 3 months & above, the fund has consistently outperformed its benchmark (S&P Nifty), generating an annualised return of 27.81% in the last 3-year period while in the said period its benchmark has given 13.69% growth (as on Mar 5, 2010).
The fund is being managed by Mohit Mirchandani since January 1, 2010. In the last 3 months, it has maintained healthcare as its top sector with 14.67% of the total portfolio amount being allocated to this sector. As on February 28, 2010, its top 10 stocks constituted 29.39% of the total portfolio value. It has diversified its portfolio by investing across the sectors and its top 5 sectors are healthcare, financial, engineering, services and FMCG, with a total allocation of 54.02% of the total portfolio. It is currently holding 18.71% of the portfolio in cash & cash equivalents.
Canara Robeco Equity Tax Saver Fund
The fund has registered an annualized return of 23.03% in last 3 years. It has been in existence for the last 17 years and was launched with an objective to invest 85% to 95% of the corpus into equities, and its exposure to money market instruments was not to exceed 15%. The fund manager follows 'Growth' style of investing by diversifying his portfolio in large cap and mid cap stocks. Since March 2009, it has maintained an average equity allocation of ~90%, with the remaining portion being held as cash or investment in debt instruments or both.
The fund's NAV has generated an absolute return of 138.63% in the last 1 year and has outpaced its benchmark index BSE 100, by ~31 percentage points. The fund in the 3 month & above period has consistently out-performed its benchmark. The fund has diversified its portfolio into 52 stocks across various sectors with top 5 sectors (financial, energy, services, technology and healthcare) constituting 74.15% of the total portfolio.
Religare Tax Plan
The fund in the 3 month & above period has consistently outperformed its benchmark index S&P CNX Nifty, registering an annualised return of 20.53% in the last 3 years while in the stated period Nifty has given 12.47% return.
The fund was launched on December 29, 2006, with an investment objective to generate long-term capital growth from a diversified portfolio of pre-dominantly equity and equity-related securities. It is being managed by Vetri Subramaniam since December 16, 2008. It has diversified its portfolio by investing in 51 stocks as per February portfolio with top 10 stocks constituting 33.02% of the portfolio. Since September 2009, Reliance Industries has been the favorite pick of the fund manager.
Sahara Tax Gain Scheme
The fund is being managed by A N Sridhar and was launched in April 1997. The fund in the longer time horizon has consistently out-performed its benchmark (BSE 200) and has also surpassed its peer group performance by registering an annualized return of 20.05% in the 3-year period surpassing its benchmark by ~7 percentage points.
It has invested in around 30 stocks in the last 3 months.
DSP Black Rock Tax Saver Fund
The fund has registered an annualized return of 18.59% in the last 3 years.
Banking sector, a favored sector in the past rallies, does figure as the top sector even in the recent portfolio. Its Top 5 sector picks constitute both growth-oriented and defensive sectors.
The fund in the 3 month & above period has consistently given an above average performance as compared to its peer group and has also outperformed its benchmark index (S&P CNX 500 Equity Index) in the stated period, registering an annualized return of 18.59% in the last 3 years while its benchmark could register a growth of 12.47%.
It has a beta of 0.82 and generated a Sharpe ratio of 0.29 as per the fund's latest records.
Sundaram BNP Paribas Tax Saver Fund
It has generated an annualized return of 18.07% in the last 3 years as on March 5, 2010.
In the long term, i.e. 2 years, 3 years and 5 years, the fund has given an above average performance as compared to its peer group and has also bettered the performance given by its benchmark (BSE 200), registering an annualized return of 18.07% in the last 3 years. It has shown a reasonable track record in containing downsides and has almost on all occasions given at par or better performance than its benchmark during the uptrend in the market, barring the recent upswing which may be attributed to the cash levels held by the fund.
Fidelity Tax Advantage Fund
It has consistently given an above average performance as compared to its peer group in the 1 month & above and has also outperformed its benchmark BSE-200, registering a return of 17.03% in the 3-year period while the peer group average has been 15.39% with its benchmark giving a return of 13.49%.
The fund manager follows a buy and hold strategy and true to the Fidelity philosophy of bottom-up stock picking, has been focusing entirely on the strengths of the company. It is being managed by Sandeep Kothari who has total work experience of 13 years and has been managing this fund since July 2006. In 1-year period, it has under-performed its benchmark but by only ~4 percentage points, which may be attributed to the major allocation to large cap stocks as mid and small cap stocks had rallied in the recent uptrend. Major portion of the portfolio is in large cap stocks with very little exposure to mid & small cap stocks.
It has currently diversified its portfolio in to 40 stocks with energy, financials, technology, construction, metals forming the core of the portfolio with 61.38% of the total portfolio going to these sectors.
Franklin India Tax Shield Fund
In the last 3 years, it has generated an annualized return of 16.88%.
Investors with a medium to lower risk appetite may consider investing in this fund as its large cap stock exposure helps in containing downside. But this also reduces the prospects of huge growth in the short term. In the long run, the fund has shown the capacity to generate above average returns.
HDFC Tax Saver Fund
In the last 3 years, it has generated an annualized return of 16.20%. In the 3 months and above, the fund has outperformed the benchmark and has also delivered an above average performance, registering an annualized return of 23.02% in the 5-year period while the benchmark generated an annualized return of 20.38%.
The fund was launched on March 31, 1996 and is being managed by Vinay Kulkarni since November 2006. It follows an investment strategy wherein it looks to invest in stocks irrespective of the market capitalization to take advantage of the then prevailing market conditions. It has been in existence for almost 13 years and has consistently been giving good performance.
Banking sector, a favoured sector in the past rallies, does figure as the top sector in the February portfolio and a set of defensive sectors such as pharmaceuticals, software and consumer non-durables have figured in prominence too.
ICICI Prudential Tax Plan
In the last 3 years, the fund has registered an annualized return of 16%. It has been a consistent performer throughout surpassing the benchmark (S&P CNX Nifty) by 59.18% in the last 1 year by registering a return of 158.38%. The fund invests in stocks irrespective of the market cap and its stellar performance in the last 1 year may be attributed to the exposure to mid cap stocks.
(Note: Funds which have been in existence for at least 3 years have been selected and the ranking is on the basis of performance in the last 3 years as on March 5, 2010. Disclaimer: Past performance may or may not be sustained in future. Please read the Offer Document/scheme information document carefully before investing. This is prepared for general information purposes only and should not be construed as an offer or solicitation of an offer for purchase of any of the funds mentioned. It does not consider the investment objectives, financial situation or particular needs of the recipient. The contents are based on publicly-available information and are not intended to provide professional advice and should not be relied upon in that regard.)
Source: http://economictimes.indiatimes.com/articleshowpics/5668929.cms
Investment in an ELSS fund leaves the investor with a disposable surplus (amount of tax saved, Rs 30,900 for highest tax bracket) which, if re-invested, can add substantially to the wealth created.
Here we take a look at some top ELSS schemes on the basis of their performance during the last three years:
Taurus Tax Shield - Growth
Since its inception on March 31, 1996, the fund has shown capacity to generate wealth. Across the time period of 3 months & above, the fund has consistently outperformed its benchmark (S&P Nifty), generating an annualised return of 27.81% in the last 3-year period while in the said period its benchmark has given 13.69% growth (as on Mar 5, 2010).
The fund is being managed by Mohit Mirchandani since January 1, 2010. In the last 3 months, it has maintained healthcare as its top sector with 14.67% of the total portfolio amount being allocated to this sector. As on February 28, 2010, its top 10 stocks constituted 29.39% of the total portfolio value. It has diversified its portfolio by investing across the sectors and its top 5 sectors are healthcare, financial, engineering, services and FMCG, with a total allocation of 54.02% of the total portfolio. It is currently holding 18.71% of the portfolio in cash & cash equivalents.
Canara Robeco Equity Tax Saver Fund
The fund has registered an annualized return of 23.03% in last 3 years. It has been in existence for the last 17 years and was launched with an objective to invest 85% to 95% of the corpus into equities, and its exposure to money market instruments was not to exceed 15%. The fund manager follows 'Growth' style of investing by diversifying his portfolio in large cap and mid cap stocks. Since March 2009, it has maintained an average equity allocation of ~90%, with the remaining portion being held as cash or investment in debt instruments or both.
The fund's NAV has generated an absolute return of 138.63% in the last 1 year and has outpaced its benchmark index BSE 100, by ~31 percentage points. The fund in the 3 month & above period has consistently out-performed its benchmark. The fund has diversified its portfolio into 52 stocks across various sectors with top 5 sectors (financial, energy, services, technology and healthcare) constituting 74.15% of the total portfolio.
Religare Tax Plan
The fund in the 3 month & above period has consistently outperformed its benchmark index S&P CNX Nifty, registering an annualised return of 20.53% in the last 3 years while in the stated period Nifty has given 12.47% return.
The fund was launched on December 29, 2006, with an investment objective to generate long-term capital growth from a diversified portfolio of pre-dominantly equity and equity-related securities. It is being managed by Vetri Subramaniam since December 16, 2008. It has diversified its portfolio by investing in 51 stocks as per February portfolio with top 10 stocks constituting 33.02% of the portfolio. Since September 2009, Reliance Industries has been the favorite pick of the fund manager.
Sahara Tax Gain Scheme
The fund is being managed by A N Sridhar and was launched in April 1997. The fund in the longer time horizon has consistently out-performed its benchmark (BSE 200) and has also surpassed its peer group performance by registering an annualized return of 20.05% in the 3-year period surpassing its benchmark by ~7 percentage points.
It has invested in around 30 stocks in the last 3 months.
DSP Black Rock Tax Saver Fund
The fund has registered an annualized return of 18.59% in the last 3 years.
Banking sector, a favored sector in the past rallies, does figure as the top sector even in the recent portfolio. Its Top 5 sector picks constitute both growth-oriented and defensive sectors.
The fund in the 3 month & above period has consistently given an above average performance as compared to its peer group and has also outperformed its benchmark index (S&P CNX 500 Equity Index) in the stated period, registering an annualized return of 18.59% in the last 3 years while its benchmark could register a growth of 12.47%.
It has a beta of 0.82 and generated a Sharpe ratio of 0.29 as per the fund's latest records.
Sundaram BNP Paribas Tax Saver Fund
It has generated an annualized return of 18.07% in the last 3 years as on March 5, 2010.
In the long term, i.e. 2 years, 3 years and 5 years, the fund has given an above average performance as compared to its peer group and has also bettered the performance given by its benchmark (BSE 200), registering an annualized return of 18.07% in the last 3 years. It has shown a reasonable track record in containing downsides and has almost on all occasions given at par or better performance than its benchmark during the uptrend in the market, barring the recent upswing which may be attributed to the cash levels held by the fund.
Fidelity Tax Advantage Fund
It has consistently given an above average performance as compared to its peer group in the 1 month & above and has also outperformed its benchmark BSE-200, registering a return of 17.03% in the 3-year period while the peer group average has been 15.39% with its benchmark giving a return of 13.49%.
The fund manager follows a buy and hold strategy and true to the Fidelity philosophy of bottom-up stock picking, has been focusing entirely on the strengths of the company. It is being managed by Sandeep Kothari who has total work experience of 13 years and has been managing this fund since July 2006. In 1-year period, it has under-performed its benchmark but by only ~4 percentage points, which may be attributed to the major allocation to large cap stocks as mid and small cap stocks had rallied in the recent uptrend. Major portion of the portfolio is in large cap stocks with very little exposure to mid & small cap stocks.
It has currently diversified its portfolio in to 40 stocks with energy, financials, technology, construction, metals forming the core of the portfolio with 61.38% of the total portfolio going to these sectors.
Franklin India Tax Shield Fund
In the last 3 years, it has generated an annualized return of 16.88%.
Investors with a medium to lower risk appetite may consider investing in this fund as its large cap stock exposure helps in containing downside. But this also reduces the prospects of huge growth in the short term. In the long run, the fund has shown the capacity to generate above average returns.
HDFC Tax Saver Fund
In the last 3 years, it has generated an annualized return of 16.20%. In the 3 months and above, the fund has outperformed the benchmark and has also delivered an above average performance, registering an annualized return of 23.02% in the 5-year period while the benchmark generated an annualized return of 20.38%.
The fund was launched on March 31, 1996 and is being managed by Vinay Kulkarni since November 2006. It follows an investment strategy wherein it looks to invest in stocks irrespective of the market capitalization to take advantage of the then prevailing market conditions. It has been in existence for almost 13 years and has consistently been giving good performance.
Banking sector, a favoured sector in the past rallies, does figure as the top sector in the February portfolio and a set of defensive sectors such as pharmaceuticals, software and consumer non-durables have figured in prominence too.
ICICI Prudential Tax Plan
In the last 3 years, the fund has registered an annualized return of 16%. It has been a consistent performer throughout surpassing the benchmark (S&P CNX Nifty) by 59.18% in the last 1 year by registering a return of 158.38%. The fund invests in stocks irrespective of the market cap and its stellar performance in the last 1 year may be attributed to the exposure to mid cap stocks.
(Note: Funds which have been in existence for at least 3 years have been selected and the ranking is on the basis of performance in the last 3 years as on March 5, 2010. Disclaimer: Past performance may or may not be sustained in future. Please read the Offer Document/scheme information document carefully before investing. This is prepared for general information purposes only and should not be construed as an offer or solicitation of an offer for purchase of any of the funds mentioned. It does not consider the investment objectives, financial situation or particular needs of the recipient. The contents are based on publicly-available information and are not intended to provide professional advice and should not be relied upon in that regard.)
Source: http://economictimes.indiatimes.com/articleshowpics/5668929.cms
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