Are we really selling the best ELSS funds?
One of the important responsibilities of financial intermediaries is to recommend the “best funds” in appropriate categories to their clients. What is the definition of “best”? Is it just long term performance track record? Does short term performance play a role? Does brand play a role? Does sales engagement of fund houses play a role?
Our Deep Dive series goes into in-depth analysis of comparing sales performance vs short and long term fund performance in different fund categories, to enable financial intermediaries to see for themselves whether they indeed are selling the “best funds” within each category.
Continuing our Deep Dive series on sales performance vs fund performance for different fund categories, we put a spotlight in this edition on ELSS funds (Click here for our Deep Dive analysis on equity oriented hybrids)
The methodology for this analysis has been shared in our inaugural edition of this Deep Dive series (Click here), so we now dive straight into the analysis. The period under consideration here is the last 12 months, ie March 2017 to February 2018.
Table 1: Open ended ELSS funds – Business performance vs fund performance
Click here to download excel file
Fund Name | Net Sales | Net Sales | Net Sales | AuM | AuM | AuM Growth | AuM Gr | AuM Gr | 1 yr fund performance | 5 yr fund performance | |||||
Mar17-Feb18 | Mkt Share | Rank | Feb-13 | Feb-18 | 5 yrs | Mkt Share | Rank | Return | Rank | Return | Rank | ||||
12mth Rs Crs | Funds: 41 | Funds: 41 | Funds: 41 | Funds: 33 | |||||||||||
Reliance Tax Saver (ELSS) Fund(G) | 1,941 | 16.8% | 1 | 1,945 | 10,345 | 8,400 | 15.3% | 2 | 14.90 | 33 | 21.38 | 3 | |||
Axis LT Equity Fund(G) | 1,672 | 14.5% | 2 | 478 | 16,161 | 15,683 | 28.5% | 1 | 22.96 | 12 | 22.61 | 1 | |||
DSPBR Tax Saver Fund-Reg(G) | 1,591 | 13.8% | 3 | 702 | 3,905 | 3,203 | 5.8% | 6 | 15.46 | 28 | 19.81 | 10 | |||
Aditya Birla SL Tax Relief '96(G) | 1,401 | 12.1% | 4 | 1,416 | 5,032 | 3,617 | 6.6% | 5 | 26.00 | 5 | 21.96 | 2 | |||
Sundaram Diversified Equity(G) | 888 | 7.7% | 5 | 1,316 | 2,632 | 1,317 | 2.4% | 10 | 16.22 | 27 | 16.44 | 24 | |||
Tata India Tax Savings Fund-Reg(G) | 551 | 4.8% | 6 | 122 | 1,219 | 1,097 | 2.0% | 11 | 21.34 | 15 | |||||
Mirae Asset Tax Saver Fund-Reg(G) | 517 | 4.5% | 7 | 864 | 864 | 1.6% | 13 | 24.47 | 10 | ||||||
L&T Tax Advt Fund-Reg(G) | 488 | 4.2% | 8 | 1,117 | 2,989 | 1,872 | 3.4% | 9 | 23.53 | 11 | 19.12 | 12 | |||
MOSt Focused Long Term Fund-Reg(G) | 435 | 3.8% | 9 | 852 | 852 | 1.6% | 14 | 27.68 | 4 | ||||||
ICICI Pru LT Equity Fund (Tax Saving)(G) | 417 | 3.6% | 10 | 1,392 | 5,034 | 3,642 | 6.6% | 4 | 12.33 | 37 | 18.01 | 17 | |||
IDFC Tax Advt(ELSS) Fund-Reg(G) | 385 | 3.3% | 11 | 151 | 1,084 | 933 | 1.7% | 12 | 29.83 | 3 | 20.80 | 6 | |||
Franklin India Taxshield(G) | 384 | 3.3% | 12 | 896 | 3,437 | 2,541 | 4.6% | 7 | 12.39 | 36 | 17.88 | 18 | |||
SBI Magnum TaxGain'93-Reg(G) | 274 | 2.4% | 13 | 4,382 | 6,431 | 2,049 | 3.7% | 8 | 14.91 | 32 | 16.52 | 23 | |||
HDFC TaxSaver(G) | 174 | 1.5% | 14 | 3,360 | 7,017 | 3,657 | 6.7% | 3 | 14.93 | 31 | 16.83 | 22 | |||
DHFL Pramerica LT Equity Fund-Reg(G) | 126 | 1.1% | 15 | 222 | 222 | 0.4% | 24 | 17.95 | 25 | ||||||
Mahindra MF Kar Bachat Yojana-Reg(G) | 95 | 0.8% | 16 | 278 | 278 | 0.5% | 23 | 8.03 | 41 | ||||||
Aditya Birla SL Tax Plan(G) | 90 | 0.8% | 17 | 119 | 683 | 563 | 1.0% | 17 | 25.60 | 6 | 21.17 | 4 | |||
Kotak Tax Saver Scheme(G) | 86 | 0.7% | 18 | 377 | 717 | 340 | 0.6% | 21 | 12.21 | 38 | 15.98 | 27 | |||
Invesco India Tax Plan(G) | 53 | 0.5% | 19 | 130 | 502 | 372 | 0.7% | 20 | 19.95 | 20 | 19.84 | 9 | |||
LIC MF Tax Plan(G) | 52 | 0.4% | 20 | 30 | 158 | 128 | 0.2% | 27 | 20.51 | 16 | 16.31 | 25 | |||
UTI LT Equity Fund (Tax Saving)(G) | 49 | 0.4% | 21 | 446 | 935 | 489 | 0.9% | 18 | 14.79 | 34 | 15.30 | 28 | |||
BOI AXA Tax Adv Fund-Reg(G) | 48 | 0.4% | 22 | 35 | 145 | 110 | 0.2% | 28 | 34.17 | 2 | 19.26 | 11 | |||
BOI AXA Tax Adv-Eco(G) | 47 | 0.4% | 23 | 35 | 145 | 110 | 0.2% | 29 | 35.29 | 1 | 20.09 | 8 | |||
Union Tax Saver Fund(G) | 43 | 0.4% | 24 | 47 | 205 | 159 | 0.3% | 26 | 13.40 | 35 | 12.33 | 33 | |||
Baroda Pioneer ELSS 96(G) | 41 | 0.4% | 25 | 25 | 132 | 107 | 0.2% | 30 | 15.03 | 30 | |||||
Essel Long Term Advantage Fund-Reg(G) | 15 | 0.1% | 26 | 41 | 41 | 0.1% | 32 | 10.67 | 40 | ||||||
HDFC Long Term Adv Fund(G) | 6 | 0.1% | 27 | 812 | 1,583 | 771 | 1.4% | 15 | 19.08 | 21 | 17.80 | 19 | |||
Principal Tax Savings Fund | 4 | 0.0% | 28 | 205 | 385 | 180 | 0.3% | 25 | 25.39 | 9 | 20.83 | 5 | |||
Sahara Tax Gain Fund(G) | -2 | 0.0% | 29 | 11 | 7 | -4 | 0.0% | 38 | 10.79 | 39 | 14.72 | 32 | |||
Edelweiss Tax Advantage Fund-Reg(G) | -3 | 0.0% | 30 | 4 | 12 | 8 | 0.0% | 33 | 21.55 | 13 | 16.05 | 26 | |||
JM Tax Gain Fund(G) | -4 | 0.0% | 31 | 32 | 32 | 0 | 0.0% | 36 | 20.19 | 18 | 18.99 | 13 | |||
L&T Tax Saver Fund(G) | -5 | 0.0% | 32 | 27 | 30 | 3 | 0.0% | 34 | 20.31 | 17 | 20.35 | 7 | |||
Aditya Birla SL Tax Savings Fund(G) | -5 | 0.0% | 33 | 25 | 26 | 2 | 0.0% | 35 | 25.56 | 7 | 18.49 | 14 | |||
Edelweiss Long Term Equity Fund | -5 | 0.0% | 34 | 12 | 75 | 63 | 0.1% | 31 | 20.08 | 19 | 18.05 | 16 | |||
DHFL Pramerica Tax Plan(G) | -8 | -0.1% | 35 | 49 | 45 | -4 | 0.0% | 37 | 18.67 | 22 | 17.41 | 20 | |||
Taurus Tax Shield Fund-Reg(G) | -15 | -0.1% | 36 | 94 | 52 | -42 | -0.1% | 40 | 25.53 | 8 | 15.17 | 29 | |||
IDBI Equity Advantage Fund-Reg(G) | -16 | -0.1% | 37 | 672 | 672 | 1.2% | 16 | 21.38 | 14 | ||||||
HSBC Tax Saver Equity Fund(G) | -39 | -0.3% | 38 | 186 | 178 | -8 | 0.0% | 39 | 17.45 | 26 | 18.09 | 15 | |||
BNP Paribas LT Equity Fund(G) | -58 | -0.5% | 39 | 120 | 551 | 430 | 0.8% | 19 | 18.65 | 23 | 17.12 | 21 | |||
Principal Personal Tax saver Fund | -62 | -0.5% | 40 | 378 | 310 | -68 | -0.1% | 41 | 15.18 | 29 | 14.97 | 30 | |||
Canara Rob Equity Tax Saver Fund-Reg(G) | -117 | -1.0% | 41 | 544 | 857 | 313 | 0.6% | 22 | 18.54 | 24 | 14.86 | 31 | |||
Total - Open Ended ELSS Funds | 11,534 | 100% | 21,020 | 75,980 | 54,961 | 100% |
Table 2: Open ended ELSS funds – Quarterly net sales analysis for last 12 months
Click here to download excel file
Fund Name | Mar 17 - May17 | Jun 17 - Aug 17 | Sept 17 - Nov 17 | Dec 17 - Feb 18 | Net Sales | Net Sales | Net Sales | |||||||
Net Sales | Mkt Share | Net Sales | Mkt Share | Net Sales | Mkt Share | Net Sales | Mkt Share | Mar17-Feb18 | Mkt Share | Rank | ||||
Rs Crs | Rs Crs | Rs Crs | Rs Crs | 12mth Rs Crs | Funds: 41 | |||||||||
Reliance Tax Saver (ELSS) Fund(G) | 798.57 | 23.2% | 268.43 | 12.7% | 282.26 | 13.0% | 591.88 | 15.6% | 1,941 | 16.8% | 1 | |||
Axis LT Equity Fund(G) | 574.44 | 16.7% | 331.82 | 15.7% | 330.79 | 15.2% | 435.31 | 11.4% | 1,672 | 14.5% | 2 | |||
DSPBR Tax Saver Fund-Reg(G) | 644.68 | 18.7% | 272.93 | 12.9% | 267.76 | 12.3% | 406.05 | 10.7% | 1,591 | 13.8% | 3 | |||
Aditya Birla SL Tax Relief '96(G) | 339.16 | 9.9% | 197.12 | 9.3% | 192.97 | 8.9% | 671.49 | 17.7% | 1,401 | 12.1% | 4 | |||
Sundaram Diversified Equity(G) | 106.11 | 3.1% | 269.16 | 12.7% | 262.84 | 12.1% | 250.39 | 6.6% | 888 | 7.7% | 5 | |||
Tata India Tax Savings Fund-Reg(G) | 95.75 | 2.8% | 78.25 | 3.7% | 116.48 | 5.4% | 260.14 | 6.8% | 551 | 4.8% | 6 | |||
Mirae Asset Tax Saver Fund-Reg(G) | 126.68 | 3.7% | 114.66 | 5.4% | 116.18 | 5.3% | 159.22 | 4.2% | 517 | 4.5% | 7 | |||
L&T Tax Advt Fund-Reg(G) | 54.97 | 1.6% | 106.68 | 5.0% | 135.80 | 6.2% | 190.14 | 5.0% | 488 | 4.2% | 8 | |||
MOSt Focused Long Term Fund-Reg(G) | 150.36 | 4.4% | 91.85 | 4.3% | 102.24 | 4.7% | 90.96 | 2.4% | 435 | 3.8% | 9 | |||
ICICI Pru LT Equity Fund (Tax Saving)(G) | 171.98 | 5.0% | 71.02 | 3.4% | 72.43 | 3.3% | 101.70 | 2.7% | 417 | 3.6% | 10 | |||
IDFC Tax Advt(ELSS) Fund-Reg(G) | 24.49 | 0.7% | 18.05 | 0.9% | 66.16 | 3.0% | 276.31 | 7.3% | 385 | 3.3% | 11 | |||
Franklin India Taxshield(G) | 193.91 | 5.6% | 78.60 | 3.7% | 83.26 | 3.8% | 28.56 | 0.8% | 384 | 3.3% | 12 | |||
SBI Magnum TaxGain'93-Reg(G) | -64.55 | -1.9% | 74.73 | 3.5% | 68.86 | 3.2% | 194.80 | 5.1% | 274 | 2.4% | 13 | |||
HDFC TaxSaver(G) | 19.97 | 0.6% | 33.56 | 1.6% | 32.71 | 1.5% | 87.76 | 2.3% | 174 | 1.5% | 14 | |||
DHFL Pramerica LT Equity Fund-Reg(G) | 27.03 | 0.8% | 30.74 | 1.5% | 25.24 | 1.2% | 42.79 | 1.1% | 126 | 1.1% | 15 | |||
Mahindra MF Kar Bachat Yojana-Reg(G) | 31.73 | 0.9% | 17.91 | 0.8% | 19.34 | 0.9% | 25.57 | 0.7% | 95 | 0.8% | 16 | |||
Aditya Birla SL Tax Plan(G) | 30.18 | 0.9% | 12.76 | 0.6% | 17.22 | 0.8% | 29.86 | 0.8% | 90 | 0.8% | 17 | |||
Kotak Tax Saver Scheme(G) | 46.58 | 1.4% | 14.50 | 0.7% | 8.28 | 0.4% | 16.15 | 0.4% | 86 | 0.7% | 18 | |||
Invesco India Tax Plan(G) | 26.47 | 0.8% | 12.00 | 0.6% | 12.12 | 0.6% | 2.35 | 0.1% | 53 | 0.5% | 19 | |||
LIC MF Tax Plan(G) | 14.00 | 0.4% | 12.38 | 0.6% | 9.24 | 0.4% | 16.05 | 0.4% | 52 | 0.4% | 20 | |||
UTI LT Equity Fund (Tax Saving)(G) | 35.55 | 1.0% | 31.05 | 1.5% | 20.99 | 1.0% | -38.17 | -1.0% | 49 | 0.4% | 21 | |||
BOI AXA Tax Adv Fund-Reg(G) | 7.05 | 0.2% | 8.04 | 0.4% | 10.91 | 0.5% | 21.54 | 0.6% | 48 | 0.4% | 22 | |||
BOI AXA Tax Adv-Eco(G) | 6.90 | 0.2% | 7.86 | 0.4% | 10.67 | 0.5% | 21.24 | 0.6% | 47 | 0.4% | 23 | |||
Union Tax Saver Fund(G) | 12.29 | 0.4% | 7.49 | 0.4% | 7.36 | 0.3% | 15.98 | 0.4% | 43 | 0.4% | 24 | |||
Baroda Pioneer ELSS 96(G) | 11.46 | 0.3% | 9.12 | 0.4% | 6.42 | 0.3% | 13.63 | 0.4% | 41 | 0.4% | 25 | |||
Essel Long Term Advantage Fund-Reg(G) | 2.61 | 0.1% | 8.05 | 0.4% | 1.18 | 0.1% | 3.54 | 0.1% | 15 | 0.1% | 26 | |||
HDFC Long Term Adv Fund(G) | 20.66 | 0.6% | -1.67 | -0.1% | -13.85 | -0.6% | 1.06 | 0.0% | 6 | 0.1% | 27 | |||
Principal Tax Savings Fund | -0.85 | 0.0% | 0.10 | 0.0% | 0.32 | 0.0% | 4.91 | 0.1% | 4 | 0.0% | 28 | |||
Sahara Tax Gain Fund(G) | -0.86 | 0.0% | -0.47 | 0.0% | -0.46 | 0.0% | -0.49 | 0.0% | -2 | 0.0% | 29 | |||
Edelweiss Tax Advantage Fund-Reg(G) | -0.45 | 0.0% | -0.58 | 0.0% | -0.76 | 0.0% | -1.06 | 0.0% | -3 | 0.0% | 30 | |||
JM Tax Gain Fund(G) | -1.01 | 0.0% | -1.13 | -0.1% | -0.78 | 0.0% | -1.02 | 0.0% | -4 | 0.0% | 31 | |||
L&T Tax Saver Fund(G) | -1.07 | 0.0% | -1.32 | -0.1% | -0.97 | 0.0% | -1.18 | 0.0% | -5 | 0.0% | 32 | |||
Aditya Birla SL Tax Savings Fund(G) | -2.09 | -0.1% | -0.77 | 0.0% | -0.86 | 0.0% | -0.84 | 0.0% | -5 | 0.0% | 33 | |||
Edelweiss Long Term Equity Fund | -2.19 | -0.1% | -2.28 | -0.1% | -0.89 | 0.0% | -0.09 | 0.0% | -5 | 0.0% | 34 | |||
DHFL Pramerica Tax Plan(G) | -2.55 | -0.1% | -1.62 | -0.1% | -1.62 | -0.1% | -1.99 | -0.1% | -8 | -0.1% | 35 | |||
Taurus Tax Shield Fund-Reg(G) | -5.45 | -0.2% | -3.04 | -0.1% | -2.97 | -0.1% | -3.05 | -0.1% | -15 | -0.1% | 36 | |||
IDBI Equity Advantage Fund-Reg(G) | 19.05 | 0.6% | 1.32 | 0.1% | -26.07 | -1.2% | -10.71 | -0.3% | -16 | -0.1% | 37 | |||
HSBC Tax Saver Equity Fund(G) | -15.38 | -0.4% | -6.06 | -0.3% | -6.13 | -0.3% | -11.02 | -0.3% | -39 | -0.3% | 38 | |||
BNP Paribas LT Equity Fund(G) | -4.70 | -0.1% | -10.19 | -0.5% | -11.82 | -0.5% | -31.49 | -0.8% | -58 | -0.5% | 39 | |||
Principal Personal Tax saver Fund | -13.92 | -0.4% | -11.86 | -0.6% | -11.55 | -0.5% | -24.85 | -0.7% | -62 | -0.5% | 40 | |||
Canara Rob Equity Tax Saver Fund-Reg(G) | -38.50 | -1.1% | -21.01 | -1.0% | -27.04 | -1.2% | -30.44 | -0.8% | -117 | -1.0% | 41 | |||
Total - Open Ended ELSS Funds | 3439.04 | 100% | 2118.17 | 100% | 2174.26 | 100% | 3802.97 | 100% | 11,534 | 100% |
Observations
We hope you find this Deep Dive into ELSS funds useful in terms of running a quick check into the products that are on your own recommended list, to determine funds you might want to look closer into to decide whether they ought to go into or out of your list. For fund houses, we hope this gives an objective analysis of how your funds stack up on a business vs fund performance comparison, to enable you to put more focus where you think this report is putting some pointers on.
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