Table of Contents
About the Fund
Axis ELSS Tax Saver Fund is an open-ended equity-linked savings scheme that allows investors to save taxes while investing in high-growth equities.
It offers the benefits of long-term capital appreciation and tax savings under Section 80C of the Income Tax Act, 1961.
The fund is managed by experienced fund managers Shreyash Devalkar and Ashish Naik, who have been with the fund since August 2023.
Axis ELSS Tax Saver Fund – Fund Overview
| Parameter | Details |
|---|---|
| Fund Name | Axis ELSS Tax Saver Fund |
| Scheme Type | Open-Ended Equity Linked Savings Scheme (ELSS) |
| Date of Allotment | 29th December 2009 |
| AUM (Assets Under Management) | ₹37,800.02 Cr. (as of 31st October 2024) |
| Benchmark | Nifty 500 TRI |
| Risk-Free Rate | 6.61% (MIBOR as of 31-10-2024) |
| Standard Deviation (3 Years) | 15.77% |
| Beta (3 Years) | 1.03 |
| Sharpe Ratio (3 Years) | 0.06 |
| Portfolio Turnover (1 Year) | 0.53 times |
| Fund Managers | – Mr. Shreyash Devalkar (20 years of experience) – Mr. Ashish Naik (16 years of experience) |
| Entry Load | Nil |
| Exit Load | Nil |
| Lock-In Period | 3 years (for tax-saving benefits under Section 80C) |
Investment Objective:
The Axis ELSS Tax Saver Fund aims to provide income and long-term capital appreciation from a diversified portfolio of equity and equity-related securities. While the fund has a history of strong returns, there is no assurance that the investment objective will always be achieved.
Top 10 Holdings
The fund invests primarily in large-cap and mid-cap stocks across various sectors. Here’s a look at its top 10 holdings:
| Stock Name | Sector | % of NAV |
|---|---|---|
| HDFC Bank Limited | Banks | 6.80% |
| Torrent Power Limited | Power | 5.15% |
| Bajaj Finance Limited | Financial Services | 4.19% |
| ICICI Bank Limited | Banks | 4.12% |
| Tata Consultancy Services (TCS) | Information Technology | 3.61% |
| Bharti Airtel Limited | Telecommunications | 3.56% |
| Divi’s Laboratories Limited | Pharmaceuticals | 2.99% |
| Avenue Supermarts Limited | Retailing | 2.73% |
| Mahindra & Mahindra Limited | Automobiles | 2.23% |
| Infosys Limited | Information Technology | 2.18% |
These holdings show a strong tilt toward financial services, technology, and power sectors, making the fund suitable for investors seeking diversified exposure to these high-growth sectors.
Regular Plan vs. Growth Plan
Axis ELSS Tax Saver Fund offers two main plans: the Regular Plan and the Growth Plan. Below is a breakdown of the two plans and their key differences:
Regular Plan:
- Expense Ratio: Typically higher due to distributor commissions.
- Investment Approach: Suitable for investors who prefer to invest through intermediaries (financial advisors, brokers).
- Tax Implications: Same as Growth Plan, as both are eligible for tax deductions under Section 80C.
- Best For: Investors who are new to mutual funds and prefer guidance through intermediaries.
Growth Plan:
- Expense Ratio: Lower than the Regular Plan, as no distributor commissions are charged.
- Investment Approach: Ideal for those who wish to manage their investments directly without intermediaries.
- Tax Implications: Same as Regular Plan, both plans offer tax-saving benefits under Section 80C.
- Best For: Investors with a long-term horizon who want to minimize expense ratios and manage their investments independently.
Performance Comparison
Below is the performance of Axis ELSS Tax Saver Fund compared to its benchmark (Nifty 500 TRI) and additional benchmark (Nifty 50 TRI), showing returns over 1, 3, 5, and since inception.
Performance Table (CAGR%)
| Period | Axis ELSS Tax Saver Fund (Regular Plan – Growth) | Nifty 500 TRI (Benchmark) | Nifty 50 TRI (Additional Benchmark) |
|---|---|---|---|
| 1 Year | 32.46% | 36.22% | 28.30% |
| 3 Years | 7.51% | 15.71% | 12.35% |
| 5 Years | 13.69% | 19.75% | 16.61% |
| Since Inception | 16.26% | 13.09% | 12.28% |
Performance of Direct Plan
| Period | Axis ELSS Tax Saver Fund (Direct Plan – Growth) | Nifty 500 TRI (Benchmark) | Nifty 50 TRI (Additional Benchmark) |
|---|---|---|---|
| 1 Year | 33.45% | 36.22% | 28.30% |
| 3 Years | 8.36% | 15.71% | 12.35% |
| 5 Years | 14.60% | 19.75% | 16.61% |
| Since Inception | 17.94% | 15.33% | 13.97% |
Income Distribution Cum Capital Withdrawal (IDCW)
| Record Date | IDCW per Unit (₹) | NAV (Cum-IDCW) (₹) – Regular Plan | NAV (Ex-IDCW) (₹) – Regular Plan | IDCW per Unit (₹) | NAV (Cum-IDCW) (₹) – Direct Plan | NAV (Ex-IDCW) (₹) – Direct Plan |
|---|---|---|---|---|---|---|
| Jan 24, 2024 | 2.00 | 24.61 | 24.72 | 4.30 | 52.04 | 52.26 |
| Mar 16, 2023 | 2.20 | 21.91 | 19.03 | 1.85 | 43.24 | 39.99 |
| Feb 28, 2022 | 2.30 | 26.14 | 23.84 | 3.55 | 50.21 | 46.66 |
What is IDCW in Mutual Funds ?
Explanation of Performance Metrics:
- CAGR (Compound Annual Growth Rate): Represents the mean annual growth rate of an investment over a specified period of time longer than one year.
- Benchmark Comparison: The fund’s performance is compared against two benchmarks — Nifty 500 TRI (for broader market comparison) and Nifty 50 TRI (more focused on large-cap stocks).
Both the Regular and Direct Plan have shown consistent growth, with the Direct Plan consistently outperforming the Regular Plan due to lower expense ratios.
Exit Load, Entry Load & Other Details
- Entry Load: Nil (No charge for entering the fund)
- Exit Load: Nil (No charge for redeeming units before the lock-in period ends)
- Lock-In Period: 3 years (Mandatory under Section 80C for tax benefits)
Sector Allocation (as of 31st October 2024)
| Sector | % of Portfolio |
|---|---|
| Financial Services | 28.38% |
| Healthcare | 9.73% |
| Consumer Services | 8.45% |
| Automobile & Auto Components | 8.36% |
| Information Technology | 7.44% |
| Power | 5.57% |
| Capital Goods | 5.50% |
| Chemicals | 5.11% |
| FMCG (Fast Moving Consumer Goods) | 4.14% |
| Telecommunication | 3.56% |
| Others | 23.86% |
FAQs
- What is the Axis ELSS Tax Saver Fund?
The Axis ELSS Tax Saver Fund is an open-ended equity mutual fund that focuses on long-term capital appreciation by investing primarily in equities and related securities. It also provides tax benefits under Section 80C of the Income Tax Act. - What advantages does the Axis ELSS Tax Saver Fund offer?
This fund allows investors to claim tax deductions of up to ₹46,800 annually, making it a tax-efficient investment option. Additionally, it has the potential for higher returns compared to traditional tax-saving instruments, along with a shorter lock-in period of three years. - Is there a lock-in period for the Axis ELSS Tax Saver Fund?
Yes, the fund has a mandatory lock-in period of three years, during which investors cannot redeem their units. This encourages long-term investing and can help investors benefit from market growth. - How does the Axis ELSS Tax Saver Fund stack up against other tax-saving options?
When compared to conventional tax-saving instruments like Fixed Deposits (FDs) and Public Provident Fund (PPF), the Axis ELSS Tax Saver Fund generally offers higher potential returns and a shorter lock-in duration (3 years for ELSS versus 5 years for FDs and 15 years for PPF). - What is the minimum amount required to invest in the Axis ELSS Tax Saver Fund?
The fund requires a minimum initial investment of ₹500, with subsequent investments also starting at ₹500. This makes it accessible for many investors looking to save on taxes while participating in equity markets. - What risks should I consider before investing in the Axis ELSS Tax Saver Fund?
As an equity-focused mutual fund, it carries significant risks due to market volatility. Investors should be ready for fluctuations in their investment value and ideally have a long-term perspective to navigate these risks effectively. - Can I withdraw my investment before the lock-in period ends?
No, investors are unable to withdraw their investments during the three-year lock-in period. After this period, they can choose to redeem their units or continue holding them based on their financial objectives. - What are the tax benefits associated with investing in the Axis ELSS Tax Saver Fund?
Investments in this fund qualify for tax deductions up to ₹1.5 lakh under Section 80C each financial year. After the lock-in period, any long-term capital gains exceeding ₹1 lakh are taxed at a rate of 12%. - How can I invest in the Axis ELSS Tax Saver Fund?
Investors can easily invest online via the Axis Mutual Fund website by selecting the fund, opting for either a lump-sum investment or a Systematic Investment Plan (SIP), and completing the required documentation. - What is the recent performance of the Axis ELSS Tax Saver Fund?
Recent performance reports indicate that this fund has delivered robust annualized returns of approximately 16% since its inception and has consistently outperformed many peers in its category over various time frames.
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