This tax-saving ELSS mutual fund gave 17% returns in three-year period; should you invest?

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

INVESCO INDIA ELSS TAXSAVER FUND
BASIC FACTS
DATE OF LAUNCH
29 DECEMBER 2006

CATEGORY
EQUITY
TYPE
ELSS
AUM*
Rs.2,459 crore
BENCHMARK
S&P BSE 500 TOTAL
RETURN INDEX

WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.104.4
IDCW**
Rs.25.3
MINIMUM INVESTMENT
Rs.500

MINIMUM SIP AMOUNT
Rs.500

EXPENSE RATIO# (%)
1.95
EXIT LOAD
0%

*AS ON 31 DEC 2023
**AS ON 15 JAN 2024
#AS ON 30 NOV 2023

FUND MANAGER
AMIT NIGAM (LEFT)/DHIMANT KOTHARI
3 YEARS, 3 MONTHS /5 YEARS, 9 MONTHS

Recent portfolio changes
New entrants
Eicher Motors, Honasa Consumer (Nov). DLF, Mankind Pharma, REC, Varun Beverages (Dec).
Complete exits
Devyani International (Dec).
Increasing allocation
Cholamandalam Investment & Finance Company, Clean Science And Technology, Gujarat State Petronet, IndusInd Bank (Nov). Apollo Tyres, Eicher Motors, Honasa Consumer, NTPC, PI Industries, Safari Industries (India) (Dec).

Should You Buy
This fund runs a large-cap tilt like many of its peers, yet retains a sizeable presence in both mid and small caps. The fund has seen its portfolio grow sharply from around 40 in December 2021 to 60 at present. It retains healthy positions in some of its top bets, but has shed its earlier preference for taking only positive active positions relative to the index. The fund enjoys an impressive long-term track record, but it suffered a sharp drop in performance in 2022. The fund has recovered smartly over the past year, arresting the slide. Sustained momentum in performance is needed to get the fund back on a strong footing.