These tax saving funds will give you handsome returns in 5 years

Fund manager looks for scalable businesses with a high return on capital and structural growth.

|Last Updated: Dec 12, 2017, 11:23 AM IST|Source: Exclusive

These tax saving funds will give you handsome returns in 5 years

With markets in the midst of a bull run, equity-linked savings schemes (ELSS) of mutual funds are increasingly finding takers due to their lowest lock-in period of three years, as compared to other options, such as PPF, NSC and bank fixed deposits.

Here are some of the ELSS tax saving funds that have given stellar returns in the past 5 years, as reported by Economic Times.

The first one is Reliance Tax Saver, which gave a return of around 12.31/22.08 in 3/5 years. The top three holdings are TVS Motor, SBI, ICICI Bank.

The fund manager helps to identify companies with high quality management and promoters with good understanding of underlying business. ET reported that, 60 per cent of the portfolio is allocated to core large cap companies, while the balance is invested in mid and small cap stocks to generate additional alpha for the portfolio.

Second in the list is Axis Long-Term Equity with a return of 12.34/22.05 in 3/5-year. The top three holdings are HDFC Bank, Kotak Bank and Maruti. The AUM sums to Rs 4,266.

As per the report, the fund manager looks for scalable businesses with a high return on capital and structural growth. As compared to peers, the fund manager has a higher allocation to large caps at 70 per cent of the portfolio, and the remaining in midcaps.

BSLI Tax Relief 96 is the third fund which gave a return of 15.98/21.66 in 3/5-year. It's top three holdings are Sundaram Clayton, Honeywell Auto and Gillette. The Assets Under Management is Rs 4,266.

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These tax saving funds will give you handsome returns in 5 years

Fund manager looks for scalable businesses with a high return on capital and structural growth.

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