Aditya Birla Sun Life ELSS Tax Saver Fund-DIRECT - IDCW

Aditya Birla Sun Life ELSS Tax Saver Fund-DIRECT - IDCW holds up reasonably well within the ELSS category, currently carrying a 2-star rating. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 66/100.

Cost: At 1.07%, the expense ratio is roughly in line with the ELSS category average of 1.02% — cost isn't a standout factor either way for this fund.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a negative Sharpe ratio of -0.63 — over the past year, returns haven't kept pace with the volatility involved, even before accounting for the risk-free rate. Separately, annualised volatility of 14.85% is fairly typical for actively managed equity funds.

Who should invest: This fund is best suited to investors looking to claim the ₹1.5 lakh Section 80C tax deduction, who are comfortable with the mandatory 3-year lock-in. The High risk rating means near-term volatility should be expected — this isn't a fund to check daily.