The market has been volatile after the election results, oscillating between neutral and mostly bearish trends. Market stability remained uncertain even after the July 23, 2024, budget announcement, which garnered mixed reactions.
Take the Equity Linked Savings Scheme (ELSS) as an example, where the average monthly return stood at 3.17%. To understand the budget’s impact on ELSS funds, let’s review the recent performance of a few notable schemes while highlighting some other associated parameters.
Performance of Top ELSS Funds in the Recent Months
Here is how ELSS mutual funds have performed after the budget announcement.
1. DSP ELSS Tax Saver Fund Direct – Growth
The one-month return of this scheme was 2.48%, while the three-month return stood at 13.11%. The scheme’s portfolio comprises 55.09% of stocks from the large-cap segment, 22.16% from the mid-cap segment, and 6.67% are categorized as small-cap funds.
The DSP ELSS fund tracks the performance of Nifty 500 TRI and has received a 3-star rating from CRISIL based on its performance. The NAV is Rs 156.7560 as of September 3, 2024, while the assets under management amount to Rs 17,267.80.
2. HDFC ELSS Tax Saver Direct – Growth
The HDFC ELSS scheme delivered a 1.31% return in one month, while the average return over three months stood at 8.59%. The scheme holds 68 stocks, with 62.59% in large-cap stocks, 6.81% in mid-cap stocks, and 6.56% in small-cap stocks. Further, 0.31% of holdings belong to government securities.
HDFC ELSS tracks the Nifty 500 TRI, and based on its performance, CRISIL has assigned it a 4-star rating, down from the previous 5-star rating.
As of September 3, 2024, the HDFC ELSS scheme’s NAV was Rs 1487.6021, and its assets under management were Rs 16,145.20.
3. Invesco India ELSS Tax Saver Fund
Considering the market conditions, Invesco ELSS Fund has performed quite well in the past few months. Its one-month return stood at 3.89%, whereas the average three-month return was 12.38%. The fund comprises 60 stocks, with 33.53% in the large-cap category, 10.63% in mid-cap, and 14.93% in small-cap.
With BSE 500 TRI as the benchmark, the scheme has received a 3-star rating from CRISIL. The NAV of the Invesco India ELSS Tax Saver Scheme as of September 3, 2024, is Rs. 150.5400, while the assets under management are worth Rs. 2,945.74.
4. Motilal Oswal ELSS Tax Saver Fund
With an exceptional 8.18% return over the past month, Motilal Oswal ELSS has outperformed the category average, which stands at 3.17%. This scheme’s three-month average return was 10.40%. In terms of composition, out of the 30 stocks this scheme holds, only 11.11% belong to the large-cap category, whereas the major allocation of 33.48% is in small-cap stocks.
Considering its exceptional returns, CRISIL has given this scheme a 5-star rating. Motilal Oswal ELSS uses the Nifty 500 TRI as its benchmark. As of September 3, 2024, the scheme has an NAV of Rs 59.0359 and assets under management of Rs 3,835.43 crore.
5. Bank of India ELSS Tax Saver Fund
The Bank of India ELSS scheme has delivered a return of 0.37% in the last month, while over the last three months, the returns were 6.79%. In terms of composition, out of the 61 stocks held by this fund, 34.65% belong to large caps, 20.2% to mid-caps, and 18.7% to small caps.
This fund tracks the BSE 500 TRI and has received a 4-star rating from CRISIL. As of September 3, 2024, the scheme’s NAV stands at 202.7000, with assets under management totaling Rs 1484.56 crores.
Conclusion
Two months into the Budget 2024, ELSS mutual funds have shown decent performance. However, like any investment, they come with risks and limitations that you must gauge as an investor before investing.