This ELSS tax savings fund has given a high return of 63% over the last 2 years: investing?
ELSS mutual funds or Equity Linked Savings Schemes will give you two opportunities at once. This will help you save your taxes and you can earn short term funds. These funds will invest in Indian stock markets, but you will have to agree to a three-year lock-up period.
JM Tax Gain Fund – (Direct) – Growth
This ELSS fund has performed very well over the long term for SIPs. Over the past year the SIP return (absolute return) has fallen 5.29%, over the past 2 years it has generated returns of 12.06%, over the past 3 years it has given returns of 28.21%, and over the past 5 years it has earned returns of 43.25%. The annualized SIP returns for this fund were 11.37% over the past 2 years and 16.83% over the past 3 years. However, due to a bear market, the annualized return of this fund has fallen by 9.66% over the past year.
The fund’s mutual fund absolute returns have been significantly strong over the past two years. Over the past year it has yielded 3.76%, over the past 2 years it has yielded returns of 63.18%, over the past 3 years it has yielded returns of 57 .70% and over the past 5 years it has given returns of 81.13%. The reason for this huge yield gap is a bearish market trend over the past year in India. Compared to this, the growth of the last 2 years has been markedly green.
Over the past 2 years, the JM Tax Gain Fund’s annualized returns have been 27.74%, slightly below the category average of 30.66%. Additionally, over the past 3 years, its annualized return has been quoted at 16.38%, slightly below the category average of 17.04%.
This SIP Mutual Fund mentioned above has been rated top with 4 stars by the rating agency Crisil.
(Data through July 8, 2022)
NAV and AUM
It is an ELSS mutual fund SIP investment option which has a net asset value of Rs. 28.71. The assets under management (AUM) of this fund is Rs. 64.43 crore, which is not significantly high. The fund’s Expense Ratio (ER) is 1.61%. The ER is slightly below the category average at 1.08%. The expense ratio (ER) is the cost of owning a mutual fund or SIP, which will be charged by a mutual fund company to retail investors for the purpose of managing the fund. Thus, a low ER can increase your profitability and vice versa.
The fund’s top 10 holdings are HDFC Bank Ltd., Infosys Ltd., Larsen & Toubro Ltd., ICICI Bank Ltd., Mahindra & Mahindra Financial Services Ltd., Reliance Industries Ltd., Maruti Suzuki India Ltd., Bandhan Bank Ltd. , Tech Mahindra Ltd. and Ashok Leyland Ltd.
Investing in stocks/mutual funds/SIPs/debts/ELSS poses a risk of financial loss. Investors should therefore exercise caution. Greynium Information Technologies and the author are not responsible for any losses caused as a result of decisions based on the article.
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