ELSS funds (equity-linked saving scheme) provide tax advantages whilst giving an chance to earn market place-linked returns, due to the fact of which it is mostly preferred by salaried pros. However, liquid funds are normally invested in for security as they do not fluctuate a lot.
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 brief term funds was subdued in 2020 as compared to 2019, as was the case with liquid funds.
Stock costs dropped drastically inside no time, due to the pandemic and subsequent lockdowns in 2020. While just about all stocks suffered, some had been hit more than the other. According to a survey by Groww, some liquid funds, ultra-brief-term funds and ELSS funds had been observed to be common amongst investors.
Here is a list of top rated ELSS funds, liquid funds and ultra-brief-term funds selected by investors on Groww
ELSS Funds
ELSS funds averaged a return of 13.33 per cent in 2020 as compared to 8.27 per cent in 2019. In terms of assets beneath management, they saw 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
Liquid Funds
Industry authorities say the liquid fund outflows have not been uniform. During some months they had been more than Rs 65,000 crores, and at instances they had been also adverse. The net AUM of the category 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 slightly poor in 2020 as compared to 2019. The median return of 57 liquid funds with assets beneath management of higher 500 crores in 2020 was 4.3 per cent as compared to 6.71 per cent for the similar in 2019. The ideal performing liquid fund gave an annual return of 4.62 per cent in 2020 which was reduce than the inflation price.
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-brief Term Funds
The inflows in January 2020 stood at Rs 8,152 crores whereas, for November 2020, the inflows had been Rs 17,836.95 crores. The information shows that in between January and November, the flows have observed ups and downs. The net AUMs for ultra brief term funds rose as compared to January 2020 by about 2,000 crores. Net AUM stood at Rs 1,04,930 crores in November 2020.
The median return of 26 ultrashort duration funds with AUM higher than 500 crores was 5.81 per cent in 2020 and 8.23 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