ELSS

How To Choose Best ELSS Fund?

ELSS is one of types of Equity Oriented Mutual Fund. Equity Linked Saving Schemes / Funds give dual benefit viz opportunity to invest in equity mutual funds and tax saving. In the earlier article, we have seen the common mistakes to be avoided while investing in an ELSS fund. In this article, we will discuss the parameters based on which ELSS fund should be chosen.

ELSS investment

Mistakes to be Avoided While Buying an ELSS Fund

While tax planning may seem to be a difficult process, Mutual Funds offer us a simple way to get tax benefits, while aiming to make the most of the potential of the equity markets. An Equity Linked Savings Scheme (ELSS) is an open-ended Equity Mutual Fund that doesn't just help us save tax, but also gives us an opportunity to grow our money. It qualifies for tax exemptions under section (u/s) 80C of the Indian Income Tax Act.

HDFC Tax Saver Fund !

Category : Tax Saving (Equity) AUM: Rs. 7,017 Crore Benchmark : Nifty 500 Portfolio: Large Cap Stocks : 81% Mid Cap Stocks : 14.5% Small Cap Stocks: 4.5% Top 5 Holdings:  HDFC Bank (7.31%)ICICI Bank (7.11%)SBI (6.82%)NTPC (5.85%)Reliance Industries Ltd (5.42%) Top 5 Sector Allocations: Banks (24.42%)Power (10.35%)Construction Project (8.75%)Software (7.27%)Petroleum Products (6.89%)

ICICI Prudential Long Term Equity Fund !

Category : Tax Saving (Equity) AUM: Rs. 5,034 Crore Benchmark : Nifty 500 Portfolio: Large Cap Stocks : 69.5% Mid Cap Stocks : 28.5% Small Cap Stocks: 2% Top 5 Holdings:  NTPC (4.93%)SBI (4.47%)Nestle India (4.06%)HDFC Bank(4.00%)ITC (3.86%) Top 5 Sector Allocations: Financial Services (23.38%)Energy (11.61%)Healthcare (10.66%)FMCG (10.16%)Automobiles (10.06%)

Tata India Tax Savings Fund !

Category : Tax Saving (Equity) AUM: Rs. 1,219 Crore Benchmark : Sensex Portfolio: Large Cap Stocks : 58% Mid Cap Stocks : 32% Small Cap Stocks: 10% Top 5 Holdings:  ICICI Bank (3.95%)Reliance Industries Ltd (3.91%)HDFC Bank (3.09%)HDFC (2.68%)Tata Motors (2.46%) Top 5 Sector Allocations: Financial Services (27.47%)Construction (12.99%)Energy (10.08%)Services (8.77%)Healthcare (7.11%)