I want to invest in ELSS scheme to save tax and accumulate long term wealth. I have shortlisted two schemes- Canara Robeco Tax Saver and Axis Long Term equity fund. Which one is better between the two?
ELSS funds have a three-year lock-in on investments. Investments in these funds qualify for tax benefits under Section 80C, according to which, investment up to Rs 1 lakh are deductible from taxable income.
You can invest in either of the chosen funds as both are five-star rated tax saving schemes. Both schemes carry a low-risk and high-return proposition. Both funds have a large-cap tilt which provides downside protection and steady returns. Although Axis Long Term Equity is a relatively new fund, it has performed at par with the older funds.
Tax saving should not be the only reason for you to invest in these funds, you can even consider building long-term wealth in these funds.