Only one ELSS mutual fund has never delivered negative returns in last 10 years

Only one ELSS mutual fund has never offered negative returns in the past 10 years, based on yearly returns. The scheme has performed similarly in 2024 so far. Around 27 ELSS mutual funds have been active in the market for the last 10 years.

ICICI Prudential ELSS Tax Saver Fund has never posted negative returns in the last 10 years, based on yearly returns from 2014 to 2023. So far in 2024, the scheme has offered a return of 18.86%.



This ELSS fund offered the highest yearly return in 2014, at around 50.82%, followed by 4.33% in 2015.

In 2018, when most tax-saving mutual funds lost up to 20.68%, only four funds in the category posted positive returns, with ICICI Prudential ELSS Tax Saver Fund offering a 0.50% return during the same period.

In 2022, ELSS mutual funds declined by up to 11.97%, while ICICI Prudential ELSS Tax Saver Fund offered a return of 2.32%.

Launched in August 1999, ICICI Prudential ELSS Tax Saver Fund had an AUM of Rs 14,346 crore as of October 2024 and holds around 78 stocks in its portfolio. As of October 2024, the scheme's largest holdings were in ICICI Bank and HDFC Bank, at approximately 8.93% and 7.25%, respectively.

Axis ELSS Tax Saver Fund, the largest ELSS or tax-saving fund, has not made it to the list of schemes that have never offered negative returns in the last 10 years. The scheme lost around 0.69% in 2016 and 11.97% in 2022.

The oldest ELSS fund, SBI Long Term Equity Fund, offered negative returns of around 8.34% only in 2018.

We considered all ELSS or tax-saving mutual funds that have been in the market for at least 10 years, including both regular and growth options. We analyzed their yearly performance.

Please note, the above exercise is not a recommendation. It was conducted to identify which ELSS or tax-saving mutual funds have never offered negative returns in the last 10 years. Investment or redemption decisions should not be based solely on this exercise.

One should always consider their risk appetite, investment horizon, and goals before making any investment decisions.

ELSS (Equity Linked Savings Schemes) or tax-saving schemes help investors save income tax under Section 80C of the Income Tax Act. An individual can invest a maximum of Rs 1.5 lakh in a financial year and claim deductions on these investments. ELSS funds invest in stocks and carry high risk. These schemes have a mandatory lock-in period of three years, whereas other investment options under Section 80C have longer holding periods.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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