Axis ELSS Tax Saver Fund Direct Growth

Axis ELSS Tax Saver Fund (Formerly known as Axis Long-term Equity Fund) is an equity mutual fund. This fund offers a tax benefit of up to ₹1.5 lakhs. The fund comes with a lock-in period of 3 years. 

The portfolio consists predominantly of large-cap stocks, with selective exposure to mid and small caps and is benchmarked against Nifty 100 TRI. This benchmark helps them track their performance against a broader market. 

Investment Strategy

Axis ELSS Tax Saver Fund is managed by Mr. Shreyash Devalkar and Mr. Ashish Naik, who employ a bottom-up stock picking approach. The fund maintains a strong focus on sectors like Financial, Healthcare, Technology and Automobile.

To reduce concentration risk, stocks are actively allocated across different market caps. The fund focuses on companies with:

- Strong fundamentals and leadership positions

- Consistent earnings growth

- High operating cash flows and lower debt

Who Should Invest In Axis ELSS Tax Saver Fund?

The fund can be a suitable choice for people who have a long-term investment plan. If you align with the following characteristics, you should consider investing in the fund:

- You want to save tax under section 80C

- You want to build wealth with equities

- You have a moderate to high risk appetite

Taxation

Even though the fund has a 3-year lock-in, capital gains are treated the same as other equity mutual funds:

• Short-Term Capital Gains (STCG): Not applicable due to 3-year lock-in
  
  
• Long-Term Capital Gains (LTCG): Gains up to ₹1,25,000 per year are tax-free; any amount above that is taxed at 12.5%

This makes the fund tax-efficient, especially for long-term investors.

Allocation & Historical Returns

Currently, the fund's portfolio comprises 3.6% small-cap stocks, 75.72% large-cap stocks, and 17.54% mid-cap stocks.

With an AUM of ₹35172.0 crores, Axis ELSS Tax Saver Fund Direct Growth generated a return of 3.9% in 1 year, 12.7% in 3 years, 16.5% in 5 years. while its benchmark index (Nifty 500) generated -0.0% in 1 year, 14.5% in 3 years, and 19.5% in 5 years.