Wealth creation yearners can find solace in ELSS

Even as investors struggle to identify wealth creating investment opportunities, the Equity Linked Savings Scheme (ELSS) poses as a lucrative option due to its inherent advantages. A long term investor trying to indulge in blue-chip stocks without leaving out large cap and mid cap stocks may find security in a  fund like Axis Long term Equity Fund.

Axis Long Term Equity Fund with an healthy asset size of Rs. 8,888 crores can provide a lot of comfort to various prospective  investors, as it is always advisable to invest in funds with healthy asset size. Axis Long Term Equity Fund has been outperforming markets with a 3 year CAGR return for the fund being 27.73 per cent. For a period of 5 years the fund has delivered annualised returns of 19.98 per cent. With an industry beating expense ratio, the fund is managing its expenses very well, enhancing the overall returns for the investors.

Top holdings for the fund in blue chip space include HDFC Bank, Kotak Mahindra Bank, TCS, HDFC, L&T and in mid cap space the fund has taken maximum exposure in Pidilite Industries. Taking a portfolio view the fund has almost 47 per cent of investments in bluechip stocks with 20.85 per cent being invested in Large cap stocks and 30.83 in Mid Cap stocks.

The fund has outperformed the benchmark index BSE 200 by a good margin. BSE 200 has delivered 13.84 per cent over 3 years and 8.93 per cent in a 5 year cycle on an annualised basis.

Systematic Investment Plan (SIP), a method in which an investor invests a pre determined amount at a pre determined date, could well be the best manner to take exposure in any ELSS scheme.