Invest in consistent equity-linked saving schemes funds, says expert

The start of the financial year is a good time to begin your SIP investments in ELSS

The start of the financial year is a good time to begin your SIP investments in equity-linked saving schemes (ELSS). Choose consistent performers: 

• Currently there are 42 ELSS funds
• First, we selected the top 20 funds using the three-year Sharpe ratio (a measure of risk-adjusted return)
• Then we looked at the three-year rolling return at one-month periodicity for five years  
• Using the 60 data points, we opted for the top 10 funds that had beaten their benchmarks the highest percentage of times 
• Choose consistent funds because it is easier to stick to them

Anup Maheshwari, EVP and chief investment officer–equities, DSP BlackRock