Can I sell Axis Long Term Equity Fund?

I am an investor in Axis Long Term Equity Fund for three years. However, I am planning to shift to some other ELSS fund (Aditya Birla Sun Life Tax Relief 96 - Direct). Can you please tell me if this is a good scheme?

I want to shift because of LTCG tax. I think, in the next three years Axis Long Term Equity Fund will generate a profit of Rs 1 lakh over a capital of Rs 5 lakh invested.
--Yogesh Gahlawat

Dinesh Rohira, Founder & CEO, 5nance.com, responds:

Yes, Aditya Birla Sun Life Tax Relief 96 is a good investment for ELSS. But given the superior performance of Axis Long Term Equity Fund across different periods, I suggest you to stay invested. However, for a new ELSS investment, you can opt for ABSL Tax Relief 96.

Since all equity investment will have LTCG tax, your investment should not be on the basis of saving tax. You have to consider the performance or fundamental quality of the investment.


You can manage your withdrawal after the lock-in period to ensure that the long-term capital gains do not exceed Rs 1 lakh. This strategy will help you to save taxes. Even if you pay LTCG tax, ELSS funds can offer higher returns over a long period.