Top 9 ELSS mutual fund schemes outperformed the benchmark index in the last 10 years

 Top 9 ELSS mutual fund schemes outperformed the benchmark index in the last 10 years

Investors should carefully evaluate a variety of criteria before purchasing a mutual fund plan. These include a fund manager's prior performance, the fund house's reputation, the scheme's category, macroeconomic conditions, and most crucially, the prior performance of the scheme.

Investors also contrast the returns provided by the schemes with the returns of the benchmark index when evaluating historical performance.

Benchmark index serves as a benchmark for evaluating a mutual fund's performance. For a fund to be deemed "outperforming," it is thought necessary must continue to exceed its benchmarks.

Here, we present a brief overview of ELSS funds and focus on those that have outperformed the benchmark index.

Prior to anything else, we define precisely what equity linked savings plans (ELSS) are.

How do ELSS work?

Equity Linked Savings Schemes (ELSS) are savings plans that invest at least 80% of their funds in line with the Equity Linked Savings Scheme, 2005, which was announced by the Ministry of Finance.

Importantly, these funds have a three-year lock-in period and are deductible from income up to $1.5 lakh under section 80C of the Income Tax Act.

There are 42 ELSS-related schemes having a total value of $1,79,802 crore in assets under management (AUMs). They have 1.54 crore folios, which is the most of any equity-oriented program.

The following ELSS programs might outperform the benchmark index:

Here is a summary of the best-performing ELSS:

The Quant Tax Plan Growth, which was introduced on March 8, 2000, has an AUM of 4,605 crores. The fund currently has 3.22% in cash. Reliance Industries, HDFC Bank, NTPC, and DLF are some of the fund's key holdings in terms of stocks.

2. Bandhan Tax Advantage (ELSS) Regular Fund: It was established on December 26, 2008, and since then, it has generated a return of 18.23%. ICICI Bank, HDFC Bank, RIL, Triparty Repo, and Axis Bank are the main component stocks.

AUM for the fund is 5,073 crore.

3. JM Tax Gain Fund: This fund was introduced on March 31, 2008, and since its start, it has generated an annualized return of 8.19 percent.

The important stocks that make up the index include HDFC Bank, PFC, Infosys, ICICI Bank, and L&T. With an AUM of 90 crore, it is a little fund.