Motilal Oswal ELSS Tax Saver Fund
Direct · GrowthAI Summary
Motilal Oswal ELSS Tax Saver Fund has delivered strong SIP XIRR across all horizons, with 3Y at 21.99%, 5Y at 19.75%, and 10Y at 18.97%, consistently outpacing the category averages of 15.52%, 16.81%, and 15.83% respectively. Against the NIFTY 50, the fund has generated positive alpha across every period, including 12.76% over 3Y and 10.24% over 5Y, with lump-sum CAGRs well above benchmark in all windows. Recent performance has softened, with 2025 returning -8.69% and 2026 year-to-date at just 1.91%.
The fund has shown a favorable risk profile with a maximum drawdown of just -0.38% lasting 45 days, though it has experienced 9 drawdown events exceeding 10%, indicating periodic meaningful corrections. Downside capture is consistently below 100% across all periods (ranging from 81.47% to 91.48%), meaning the fund has historically fallen less than the NIFTY 50 in down markets. Calmar ratios between 0.45 and 0.51 across horizons reflect solid risk-adjusted returns relative to drawdown depth.
The portfolio is highly concentrated with only 21 total holdings, and the top 10 positions account for roughly 50.68% of NAV, led by Multi Commodity Exchange at 7.8% and Piramal Finance at 6.0%. Sector exposure is concentrated in Finance (16.4%), Electrical Equipment (13.5%), Capital Markets (12.2%), and Aerospace & Defense (11.2%). This focused approach amplifies both upside potential and single-stock or sector-specific risk.
The fund clearly leads its ELSS category, beating the category average SIP XIRR by roughly 5-6.5 percentage points across the 3Y, 5Y, and 7Y horizons. Consistency is strong over long periods, with lump-sum rolling 10Y mean returns of 17.93% and positive calendar-year returns in 10 of the last 12 years. However, the negative returns in 2018 (-7.14%) and 2025 (-8.69%) show it is not immune to broad market downturns.
This fund suits investors seeking tax deduction benefits under Section 80C who can accept a concentrated, high-conviction portfolio with above-average volatility. The mandatory 3-year lock-in aligns well with the fund's demonstrated strength over 3Y and longer horizons, making a 5-7 year horizon appropriate. Investors should have moderate-to-high risk tolerance given the concentrated holdings and recent soft patch in 2025-2026 returns.
- SIP XIRR of 21.99% (3Y) and 19.75% (5Y) significantly exceeds category averages of 15.52% and 16.81%
- Consistent positive alpha versus NIFTY 50 across all periods, with 12.76% alpha over 3Y and downside capture below 92% in every window
- Low expense ratio of 0.69% for an actively managed ELSS fund, supporting net returns
- High portfolio concentration with only 21 holdings and roughly 50.68% of NAV in the top 10 stocks, increasing single-stock and sector risk
- Recent momentum has weakened, with -8.69% in calendar 2025 and only 1.91% in 2026 year-to-date
Generated on 25-10-2026, 2:21 AM. Verify before investing.
Gives more importance to longer time periods (10Y, 20Y) than shorter ones (1Y, 3Y). This balances out recent outperformance and gives a more realistic picture of what long-term returns might look like.
The largest peak-to-trough decline in the fund's NAV. Shows the worst-case loss an investor would have experienced at any point in the fund's history.
If you invested ₹1,00,000 every month via SIP, here's how this fund has historically performed across different time horizons.
| Duration | Invested | Median Value | XIRR | Min XIRR | Max XIRR |
|---|---|---|---|---|---|
| 1 Year | ₹12.00 L | ₹12.87 L | 20.4% | -53.9% | 91.0% |
| 3 Years | ₹36.00 L | ₹46.98 L | 18.5% | -20.2% | 47.7% |
| 5 Years | ₹60.00 L | ₹93.93 L | 18.4% | -5.0% | 36.6% |
| 7 Years | ₹84.00 L | ₹1.68 Cr | 19.3% | 10.4% | 28.6% |
| 10 Years | ₹1.20 Cr | ₹3.18 Cr | 19.1% | 15.9% | 23.5% |
SIP returns vs benchmark & category
Annualised SIP return (XIRR) over each rolling horizon — like-for-like, not lump-sum.
| Duration | Fund SIP XIRR | NIFTY 50 | Category avg | Fund edge |
|---|---|---|---|---|
| 1 Year | 20.4% | 14.3% | 9.8% | +6.1% |
| 3 Years | 18.5% | 11.0% | 15.5% | +7.5% |
| 5 Years | 18.4% | 10.4% | 16.8% | +8.0% |
| 7 Years | 19.3% | 10.6% | 15.3% | +8.8% |
| 10 Years | 19.1% | 11.4% | 15.8% | +7.6% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 19.3% | 13.8% | -27.3% | 84.5% | 0.57 | 2.00 | 79% | — | — |
| 3 Years | 18.3% | 19.5% | -4.6% | 34.4% | 1.46 | 6.16 | 96% | — | — |
| 5 Years | 17.3% | 17.4% | 4.0% | 32.1% | 1.73 | 100.71 | 100% | — | — |
| 10 Years | 17.9% | 18.1% | 15.5% | 19.4% | 15.65 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | +10.15 | 0.90 | 93.2% | 78.3% | 0.9% | -10.9% |
| 3 Years | +13.12 | 1.02 | 107.0% | 90.3% | 19.5% | 6.4% |
| 5 Years | +10.24 | 0.98 | 101.4% | 88.7% | 15.4% | 5.2% |
| 7 Years | +7.84 | 0.93 | 95.7% | 87.0% | 17.6% | 10.0% |
| 10 Years | +5.90 | 0.94 | 94.9% | 87.5% | 16.0% | 10.3% |
| 12 Years | +8.04 | 0.92 | 94.8% | 85.1% | 16.2% | 8.3% |
| 15 Years | +6.18 | 0.92 | 94.8% | 85.1% | 12.8% | 6.6% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Multi Commodity Exchange of India Limited | 7.80% |
| 2 | Piramal Finance Limited | 6.00% |
| 3 | Apar Industries Limited | 5.37% |
| 4 | Waaree Energies Limited | 4.92% |
| 5 | Amber Enterprises India Limited | 4.56% |
| 6 | Onesource Specialty Pharma Limited | 4.53% |
| 7 | Billionbrains Garage Ventures Ltd | 4.43% |
| 8 | Ather Energy Limited | 4.37% |
| 9 | PTC Industries Limited | 4.35% |
| 10 | Muthoot Finance Limited | 4.35% |