This ELSS fund gave 26% returns in 3-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.

NAME: KOTAK TAX SAVER FUND

BASIC FACTS
DATE OF LAUNCH
23 NOVEMBER 2005
CATEGORY

EQUITY
TYPE
ELSS
AUM*
Rs.4,051 crore
BENCHMARK
NIFTY 500 TOTAL
RETURN INDEX

WHAT IT COSTS
NAV**
GROWTH OPTION
Rs.87.27
IDCW**
Rs.32.66
MINIMUM INVESTMENT
Rs.500

MINIMUM SIP AMOUNT
Rs.500

EXPENSE RATIO# (%)
1.82
EXIT LOAD
0

#AS ON 31 JULY 2023
*AS ON 31 JULY 2023
**AS ON 5 SEPTEMBER 2023

FUND MANAGER
HARSHA UPADHYAYA
8 YEARS

Recent portfolio changes
New entrants
Garware Technical Fibres, ideaForge Technology (June). HDFC Bank, Jio Financial Services (July).
Complete exits
HDFC Bank (June). HDFC (July).
Increasing allocation
Blue Star, Gujarat State Petronet, Hindustan Unilever, HDFC, NTPC, Sundaram Finance, Ultratech Cement (June). ideaForge Technology, Kalpataru Projects International, Kansai Nerolac Paints, Maruti Suzuki India (July).

Should You Buy?
This fund has a large-cap bias like many of its peers, with a modest presence in both mid- and small-cap segments. The fund manager places emphasis on bottom-up stock selection, with a top-down thematic overlay to identify best opportunities. The portfolio is well diversified, with healthy exposure in its top bets. The fund manager is comfortable taking high active positions in individual bets. The fund’s performance has been erratic over the years, unable to put in a consistent showing for long stretches. It has been posting healthy numbers for the past two years, boasting a superior risk-return profile among peers. It needs to deliver more consistently to be among the top picks in its category.