Mirae Asset ELSS Tax Saver-Direct Plan: Beating The Tax Axe With Investing

While reminders are generally unwelcome, there are instances where they become necessary and customary. Annually, during this time of the year, every salaried employee receives a reminder from the accounts department prompting them to submit their tax investment certificate to their employer.

As the fiscal year comes to an end, many of you may be considering investing in a tax-saving instrument before the deadline date meant for reporting the tax receipt to your employer for the year.

And if you are planning to invest in a tax saving mutual fund, better known as equity-linked savings scheme (ELSS), but aren’t too sure where to invest, we simplify the task for you. Mirae Asset Tax Saver could be one of your options. The fund has impressed investors since its inception in December 2015.  

Portfolio

The fund follows the flexi-cap strategy and invests across sectors and market capitalisation. It takes fair exposure in mid-cap and small-cap stocks if the fund manager finds the opportunity in that space though predominantly remains invested in large-cap stocks. Currently, the fund has invested 64.81 per cent in large-caps, 22.67 per cent in mid-cap and 10.68 per cent in small-cap stocks.

The fund has performed consistently since its inception which shows that fund manager Neelesh Surana, who is at the helm from the beginning, has captured the market opportunities properly.

Currently, the fund portfolio is tilted towards financials, auto, healthcare and consumer discretionary and is underweight on industrials on account of current valuation. The fund holds 71 stocks in the portfolio, of which the top-10 stocks account for 43 per cent of the portfolio.

Performance

The fund has delivered consistent returns over the years. On a 7-year basis, the fund has delivered at 20 per cent compounded annual growth rate (CAGR).

Given that Surana is well-known for his stock picking ability, the fund has the potential to deliver better returns in future, while also helping you save taxes.

kundan@outlookindia.com