ELSS funds (fairness-linked saving scheme) provide tax advantages whereas offering a possibility to earn market-linked returns, due to which it’s primarily most popular by salaried professionals. However, liquid funds are sometimes invested in for security as they don’t fluctuate loads.
Harsh Jain, Co-founder and COO, Groww says, “With liquid funds, investors can get their money out in 24 hours and invest whenever they find an investment opportunity. To that extent given the coronavirus crisis and the subsequent market crash, liquid funds did a good job in 2020.”
At the similar time, the efficiency of Ultra short time period funds was subdued in 2020 as in comparison with 2019, as was the case with liquid funds.
Stock costs dropped drastically inside no time, as a consequence of the pandemic and subsequent lockdowns in 2020. While nearly all shares suffered, some have been hit greater than the different. According to a survey by Groww, some liquid funds, ultra-short-term funds and ELSS funds have been seen to be popular amongst investors.
Here is a list of high ELSS funds, liquid funds and ultra-short-term funds chosen by investors on Groww;
ELSS funds averaged a return of 13.33 per cent in 2020 as in comparison with 8.27 per cent in 2019. In phrases of belongings beneath administration, they noticed modest development of 8.82 per cent.
Top ELSS funds;
- Mirae Asset Tax Saver Fund Direct-Growth
- Axis Long Term Equity Direct Plan-Growth
- Aditya Birla Sun Life Tax Relief 96 Direct-Growth
- Tata India Tax Savings Fund Direct-Growth
- Motilal Oswal Long Term Equity Fund Direct-Growth
Industry specialists say the liquid fund outflows haven’t been uniform. During some months they have been over Rs 65,000 crores, and at occasions they have been additionally destructive. The internet AUM of the class fell to Rs 3.75 lakh crores in November 2020 from Rs 4.85 crores in January 2020.
According to the report by Groww, the efficiency of liquid funds was barely poor in 2020 as in comparison with 2019. The median return of 57 liquid funds with belongings beneath administration of higher 500 crores in 2020 was 4.3 per cent as in comparison with 6.71 per cent for the similar in 2019. The greatest performing liquid fund gave an annual return of 4.62 per cent in 2020 which was decrease than the inflation rate.
Top Liquid funds;
- ICICI Prudential Liquid Fund Direct Plan-Growth
- Nippon India Liquid Fund Direct-Growth
- Aditya Birla Sun Life Liquid Fund Direct-Growth
- Axis Liquid Direct Fund Growth
- ICICI Prudential Liquid Fund Growth
Ultra-short Term Funds
The inflows in January 2020 stood at Rs 8,152 crores whereas, for November 2020, the inflows have been Rs 17,836.95 crores. The knowledge reveals that between January and November, the flows have seen ups and downs. The internet AUMs for ultra short time period funds rose as in comparison with January 2020 by round 2,000 crores. Net AUM stood at Rs 1,04,930 crores in November 2020.
The median return of 26 ultrashort length funds with AUM higher than 500 crores was 5.81 per cent in 2020 and eight.23 per cent in 2019.
Top UST funds;
- ICICI Prudential Ultra Short Term Fund Direct-Growth
- Franklin India Ultra Short Bond Fund Super Institutional Direct-Growth
- Aditya Birla Sun Life Savings Direct-Growth
- SBI Magnum Ultra Short Duration Fund Direct-Growth
- PGIM India Ultra Short Term Direct-Growth