live up to this promise and therefore, it is critical to take a look at the fund track record before investing.
There are a few ELSS funds which have been recommended by financial experts following an analysis of their degree of consistency in beating index, which is displayed in rolling returns, and the fund’s downside performance, which is laid out in the downside capture ratio. The first is the Canara Robeco Equity Tax Saver, which boasts a near-perfect track record in terms of consistently beating its benchmark index over the recent years. The fund, run by Shridatta Bhandwaldar, has beaten its index 100 per cent of the time in the three year time frames over the past five years. In the case of five year time frames, the fund has beaten it index 99.6 per cent of the times.
Another fund recommended it the Axis Long Term Equity, which is the largest fund in this category, with ₹337.85 billion (US$4.47 billion) in assets. Despite a recent dip in its return profile, the fund remains among the better performers, having outperformed its index 95 per cent of the times over three-year time frames. Over five-year time horizons, the fund has beaten its index 85 per cent on the times.
Mirae Asset Tax Saver is also one which should not be overlooked by investors. Launched in 2015, the fund has managed to firmly establish its credentials within a short period. Considering its 3-year performance, the fund has outperformed its benchmark 100 per cent on the times. The fund also averages a stunning 21 percent over the five-year time horizons since its inception.
Another fund with a boasting a remarkable track record in the BOI AXA Tax Advantage, managed by Aakash Manghani. The ₹5.46 billion fund has beaten its index 100 per cent of the time over five-year time frames in the last seven years. In the case of three-year time horizons, the fund has maintained a healthy run rate, beating its index 78 per cent of the times in last five years, proving the success of its differentiated approach in taking sizeable exposure to midcaps.
