Last Updated on August 30, 2021 at 9:15 am
Here are six ELSS mutual funds that have consistently beat Nifty Largemidcap 250 Index (incl dividends). These were shortlisted with the Equity Mutual Fund Performance Screener July 2019. You can use the screener to quickly create such lists from Value-oriented, Aggressive Hybrid, Dividend Yield, Large Cap, Focussed Funds, Large & Mid Cap Funds, Multi Cap Funds, Sectoral/ Thematic funds, Mid Cap Funds, Small Cap Funds, Contra Funds.
What is Nifty Large Midcap 250 index? This is a 50:50 blend of Nifty 100 (large cap index) and Nifty Midcap 150 (mid cap index). This is a lot harder to beat than just Nifty 200 which is essentially a lower-risk version of Nifty 100. To learn more check this out:
I chose this to analyze ELSS funds (and other categories) as it is a lot harder to beat. ELSS funds have no market cap mandate and can invest anywhere across sectors and cap in Indian equity. So this is a reasonable benchmark for comparison.
If we used Nifty, Nifty 100 or Nifty 200, then most funds would have beat then over 3,4,5 years. Thirteen funds in the category (40 funds) have beat the Nifty 100 more than 70% of every possible 3,4,5 year periods in the past (for direct plans).
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Thirteen ELSS Funds that have outperformed Nifty 100 TRI
| Aditya Birla Sun Life Tax Relief ’96 – Growth – Direct Plan |
| DSP Tax Saver Fund – Direct Plan – Growth |
| HDFC Long Term Advantage Fund -Direct Plan – Growth Option |
| IDFC Tax Advantage (ELSS) Fund-Direct Plan-Growth |
| Invesco India Tax Plan – Direct Plan – Growth |
| JM Tax Gain Fund (Direct) – Growth Option |
| L&T Tax Advantage Fund-Direct Plan-Growth |
| LIC MF Tax Plan-Direct Plan-Growth |
| BOI AXA Tax Advantage Fund-Direct Plan- Growth |
| Principal Tax Savings Fund – Direct Plan |
| Quant Tax Plan-Growth Option-Direct Plan |
| Sundaram Diversified Equity – A Long-term Tax Saver Fund – Direct Plan – Growth Option |
| Taurus Tax Shield-Direct Plan-Growth Option |
A narrower shortlist is possible if we consider the Nifty large midcap 250 index. The following six funds have beat this index 70% of the time over every possible 3,4,5 year periods with the same downside protection consistency. That is, they have typically fallen lower then the index when monthly returns are considered over 3,4, 5 year periods.
Six ELSS Funds that have outperformed Nifty LargeMidcap 250 TRI
| Aditya Birla Sun Life Tax Relief ’96 – Growth – Direct Plan |
| DSP Tax Saver Fund – Direct Plan – Growth |
| IDFC Tax Advantage (ELSS) Fund-Direct Plan-Growth |
| Invesco India Tax Plan – Direct Plan – Growth |
| JM Tax Gain Fund (Direct) – Growth Option |
| Quant Tax Plan-Growth Option-Direct Plan |
Aditya Birla Sun Life Tax Plan – Direct Plan – Growth Option is also part of this list but has been suspended for sales.
Investors who prefer a large-tilted ELSS may choose from the above 13 funds. Those who prefer a large-midcapish ELSS may consider from the above six funds. I am not trying to imply that these are the only funds that one should consider. You can check the performance of your ELSS funds (if not in this list) from the date in which you started investing or from the July 2019 screener or from with this tool to compare rolling return & risk of a mutual fund with its benchmark