Top Three Consistent Performing Equity Linked Savings Schemes (ELSS) Funds in Last 5 Years

Top-performing ELSS funds over the last five years include Quant ELSS, Bank of India ELSS, and SBI Long Term Equity.

Equity Linked Savings Schemes (ELSS) are a preferred investment option for individuals seeking tax benefits under Section 80C of the Income Tax Act, 1961, while also aiming for wealth creation through equity exposure. Among the many ELSS funds in the market, three funds have consistently delivered strong returns over the past five years: Quant ELSS Tax Saver Fund, Bank of India ELSS Tax Saver Fund, and SBI Long Term Equity Fund. 

The Quant ELSS Tax Saver Fund, managed by Quant Mutual Fund, has emerged as the top-performing ELSS fund in recent years. Launched on April 1, 2000, it has delivered consistent five-year returns of 29.76 per cent, significantly outperforming its peers and benchmark (NIFTY 500 TRI). The fund manages assets worth Rs 10,685.01 crore with a Total Expense Ratio (TER) of 1.71 per cent. Its lock-in period of three years, combined with tax-saving benefits, makes it an attractive option for investors. Since its inception, the fund has achieved a Compounded Annual Growth Rate (CAGR) of 15.38 per cent, showcasing its consistent performance. 

The Bank of India ELSS Tax Saver Fund, launched on February 25, 2009, is another strong performer, delivering consistent five-year returns of 23.84 per cent. Managed by Bank of India Mutual Fund, this fund actively manages its portfolio, reflected in its turnover ratio of 105 per cent. With an AUM of Rs 1,453.09 crore and a TER of 2.07 per cent, the fund offers competitive returns for investors seeking an actively managed ELSS option. Its benchmark, the BSE 500 TRI, provides a diversified equity exposure, while its CAGR since inception stands at an impressive 19.18 per cent. 

The SBI Long Term Equity Fund, launched on March 31, 1993, by SBI Mutual Fund, is one of the oldest ELSS funds in the market. It has generated a consistent five-year returns of 23.75 per cent, backed by a large AUM of Rs 27,842.34 crore. The fund has a relatively low TER of 1.6 per cent, making it a cost-effective choice for investors. With a turnover ratio of 20 per cent, it follows a more passive investment strategy compared to its peers. The fund's CAGR since inception is 12.48 per cent, and it tracks the BSE 500 TRI benchmark. 

Among these funds, the Quant ELSS Tax Saver Fund stands out as the best performer in terms of recent returns. However, investors should consider factors like expense ratios, fund size, turnover ratios, and their own investment goals before making a decision. ELSS funds come with a mandatory lock-in period of three years, making them suitable for investors with a medium- to long-term investment horizon. It is advisable to consult a financial advisor before investing. 

Disclaimer: The article is for informational purposes only and not investment advice.