ELSS & Small Cap Funds

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HARI PRASAD asked 8 years ago

I want to invest in ELSS mutual fund.Which one is the best ELSS fund (SIP MODE) for long term 25 or 30 years? I selected two ELSS funds. 1. Aditya Birla Sun Life Tax Relief 96 - Direct plan 2. Axis long term equity fund - Direct plan. Which is the better one? Which small cap fund is better invest for long term 25 or 30 years? (Lump sum amount Rs.10000/-) Kindly advice me.

2 Answers

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Sreekanth Staff answered 8 years ago

Hi, Both (ELSS funds) are decent performers. However, Birla fund has a very long track record. Given a choice you may go ahead with Birla fund, if you have to pick only one out of the two. You may consider Franklin Smaller cos fund. Kindly read : https://www.relakhs.com/best-elss-funds-2017-2018/ https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/ https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/

HARI PRASAD replied 8 years ago

Thanks for quick reply sir.

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Sreekanth Staff answered 8 years ago

Dear Hari, Your Query as below : I have 4 mutual funds in my portfolio. They are

HDFC BALANCED FUND (R) G
SBI BLUE CHIP FUND (R) G
FRANKLIN INDIA SMALLER COMPANIES (R) G
MIREA ASSET EMERGING BLUE CHIP (R) G

I invest in all funds Rs.1000/- per month for 25 years, I want to SIP step up. In these funds, which fund is better for SIP step up for low risk and high return for long term (25 years).
Kindly advice me sir. My Answer : Equity funds are associated with high risk. However, as your investment time-frame is very long-term, you may increase your SIP amount in small/Mid-cap funds. Keep a track of your portfolio performance once in a year at least.