Fund News

ELSS vs. Open-end Funds

Can a tax-saving fund give better returns than a regular equity fund because of the lock-in period?

If a 3-year lock-in period is acceptable, how would the returns of a tax-saving fund compare to those of regular equity funds?
-Ramesh

Ordinarily, we expect tax-saving funds to give better returns because the fund manager doesn't have to worry about the money getting redeemed on a daily basis. When a fund manager has an amount to invest for 3 years, he can assume higher risks and invest for the long-term. However, we haven't seen any statistic that can say that a tax-saving fund is better than a regular open-end equity fund.



Ask Value Research aks value research information

No question is too small. Share your queries on personal finance, mutual funds, or stocks and let us simplify things for you.


Other Categories

Informed fund ideas, better judgment. Every month. Mutual Fund Insight, every month since October 2002.

Take charge. Know more. Keep more. Mutual Fund Insight helps you do all three — every month