Active or passive ELSS? Investment advisors divided over clear winner

Some see potential in the newly introduced passive option, other see promise in active ELSS

Investment advisors seem to be divided over their preference in the mutual fund (MF) tax saver space. While some see the newly-introduced passive equity-linked savings scheme (ELSS) as a better option, given that they are free of underperformance risk, others want to continue recommending active ELSS funds as they believe that the three-year lock-in provides ample leeway to fund managers to deliver superior returns.

Advisors see promise in the passive option due to the absence of fund manager risk, low cost, consistency in investment strategy and transparency.

"On the active side, you don't really know what you are getting into.