These 2 Top-Ranked ELSS Funds Are Good To Start SIP

If you're looking for investment and Banks are your first priority, mutual funds offered by the Banks could be a good option. In addition, if you want to save tax as well in mutual funds investment, ELSS Funds could be a better choice that's too by the Banks. ELSS Funds are great to have in your portfolio as it doesn't only make decent profits over-investment, but, also come with tax benefit up to Rs 1,50,000 under the Indian Income Tax Act, 1961. Here, we come up with 2 ELSS funds offered by the house of Bank Mutual Funds, ranked number 1 by CRISIL and rated 5 and 4 stars, respectively. The Ranks are as of September 30, 2021. Both of the Funds offered returns more than their category average returns over the years.

BOI AXA Tax Advantage - Direct Plan-Growth

NAV	Fund Size	Expense Ratio
Rs 116.35%	Rs 552.46 Cr	1.57%

*NAV as on 19 January, 2022

Indian equities account for 97.96% of the fund's holdings, with large-cap stocks accounting for (49.94%), followed by mid-cap (13.39%), and small-cap (24.55%). Investors who want to put their money into anything for at least three years and want to save money on taxes in addition to getting a better return should look for investment in the fund. At the same time, these investors should be prepared for the prospect of moderate losses and a three-year lock-in period in their investments. As an investor, you can expect ups and downs in the value of your investment over time. The fund aims to create a diverse portfolio of stocks from firms with long-term business methods, with no market capitalization or sector bias. The system will use a top-down method to select stocks. The fund's goal is to achieve long-term capital growth by investing in a diversified portfolio of primary equities and equity-related assets across all market capitalizations. The Scheme is a diversified multi-cap fund in nature. It's imporatnt to understand, the fund does not provide any promised or secured returns.

IDFC Tax Advantage Fund - Direct Plan - Growth

NAV	Fund Size	Expense Ratio
Rs 112.04%	Rs 3532.7 Cr	0.70%

NAV as on 19 January 2022

The fund comes with a three-year lock-in period. The fund aims for a strategy to create a diverse portfolio of stocks from firms with excellent fundamentals that are available at affordable prices. The fund can invest entirely in stocks - and equity-related securities - and up to 20% in debt and money market instruments. It has invested 97.96% of its assets in Indian stocks, with large-cap (49.94%), mid-cap (13.39%), and small-cap (24.55%). The fund is a suitable choice for investors who want to put their money in for at least three years and want to reap the benefits of income tax savings in addition to increased profits. At the same time, these investors should be prepared for moderate losses in their investments. As a fund investor, you can expect ups and downs in the value of your investment over time. It is a good investment to achieve long-term capital growth as the fund invests primarily in equities and equity-related assets in a diversified portfolio.

SIP Returns Over The Year On Rs 1000

BOI AXA Tax Advantage - Direct Plan-Growth

Period Invested for	Absolute Returns	Annualised Returns
1 Year	18.28%	35.36%
2 Year	53.79%	47.51%
3 Year	73.71%	39.27%
5 Year	91.79%	26.34%

IDFC Tax Advantage Fund - Direct Plan - Growth

Period Invested for	Absolute Returns	Annualised Returns
1 Year	22.68%	44.32%
2 Year	65.07%	56.61%
3 Year	75.06%	39.88%
5 Year	85.79%	25.02%

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and onditions carefully before investing. The above-mentioned information is purely informational and carried forward form Money Controlla and CRISIL. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.