Ask ET Mutual Funds: Should I stick to Axis Long Term Equity Fund?

I have a monthly SIP of Rs 2,500 in Axis Long Term Equity Fund (growth, direct) since the last two years. I want to know whether it is a good fund to stay invested or should I change the fund?

--Sreedeep Basu

Abhay Shaha, Certified Financial Planner, responds:


Axis Long Term Equity Fund is an ELSS Fund with a lock-in period of three years. Investments in ELSS qualify for tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. The scheme is not performing at par with its peers. I would advise you to switch your SIP to Birla Tax Relief 96 Fund or Kotak Tax Saver Fund (given CAGR returns of 25.13 Per cent & 24.60 Per cent respectively).

If you are not considering this investment for tax saving purpose, you can consider investing in Mirae Asset Emerging BlueChip Fund.


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