Knocked down, but not knocked out

These funds invest among the top 500 Indian companies by market value, offering you 68 per cent exposure to large caps, 21 to mid caps and the rest to small caps. Collectively, these 500 stocks cover 92 per cent of the BSE universe. While ELSS (equity-linked savings scheme) funds don't matter much in the new tax regime, which is becoming popular for its simplicity, they're the only growth-focused tax-saving tool for taxpayers under the old regime. Plus, their lock-in period helps you get comfortable with holding equity. In short, under the old regime, they are your best bet for smart tax savings and building long-term wealth. Highlights & trends Performance: Most ELSS funds have outperformed the BSE 500 by at least two percentage points since 2023. They have beaten large-cap funds, too, 30.8 per cent versus 28.5 per cent, thanks to their mid- and small-cap exposure. Comparison with PPF: PPF (Public Provident Fund) may offer guaranteed returns, but those are almost guaranteed to be lower tha

This article was originally published on August 15, 2024.