Parag Parikh ELSS Tax Saver Fund
Direct · GrowthAI Summary
Parag Parikh ELSS Tax Saver Fund has delivered strong SIP returns, with XIRR of 19.57% over 3Y and 19.45% over 5Y, comfortably ahead of category averages of 15.16% and 16.31% respectively. Against the NIFTY 50, the fund has generated positive alpha across longer horizons, including 7.71% over 7Y and 5.23% over 5Y, with lump-sum CAGRs of 17.9% and 12.74% versus the benchmark's 11.81% and 7.83%. The 1Y period is a soft spot, with XIRR of 22.85% beating the category's 17.08% but a negative alpha of -6.97% versus the benchmark.
The fund exhibits a low beta of roughly 0.69-0.78 across horizons, indicating it moves less than the NIFTY 50 in both directions. Downside capture consistently beats upside capture — for example, 65.19% downside versus 74.55% upside over 7Y — supporting its favorable risk-adjusted profile, with Calmar ratios of 0.62-0.77 across periods. The maximum drawdown of just -0.30% with a 39-day duration and 120-day recovery reflects strong capital protection, though 4 drawdown events exceeding 10% show it is not immune to market stress.
The 41-stock portfolio is led by HDFC Bank (7.58%), Bajaj Holdings (7.02%), and Power Grid (6.81%), with financials (Banks at 20.3% plus Finance at 12.4%) forming the dominant exposure at nearly a third of assets. IT-Software (11.3%), Automobiles (7.8%), and Power (6.8%) round out the top sectors, offering a value-tilted mix of large-cap banks, FMCG, and energy names. The top 10 holdings account for roughly 55.7% of NAV, indicating moderate concentration with reasonable diversification across the remaining 31 stocks.
The fund outperforms the ELSS category average SIP XIRR across every listed horizon, from 22.85% versus 17.08% over 1Y to 14.92% versus 15.76% over 7Y — the only period where it trails slightly. Its long-term alpha against the NIFTY 50, including 4.73% over 10Y and 3.55% over 12Y, points to durable stock selection rather than a short-term streak. Calendar year returns show consistency, with positive years in 2019 through 2025 before the -7.77% start to 2026.
This fund suits investors seeking Section 80C tax benefits with a long-term horizon of at least 5-7 years, as the ELSS lock-in of 3 years per SIP installment limits liquidity. Its low beta and strong downside capture make it appropriate for investors with moderate risk tolerance who want equity growth with smoother ride quality than the index. It works well as a core tax-saving holding for salaried individuals comfortable with a value-oriented, financials-heavy portfolio.
- SIP XIRR beats the ELSS category average across 1Y, 3Y, and 5Y horizons, including 19.57% versus 15.16% over 3Y
- Consistently positive alpha versus NIFTY 50 over 3Y through 15Y, peaking at 7.71% over 7Y
- Low beta of 0.69-0.78 with downside capture well below upside capture, indicating strong downside protection
- Negative 1Y alpha of -6.97% versus the NIFTY 50, with fund CAGR of -7.7% against the benchmark's -2.9%
- Heavy financial sector exposure of roughly 32.7% (Banks plus Finance) creates concentration risk in a single macro theme
- Underperforms the category average SIP XIRR over the 7Y horizon (14.92% versus 15.76%)
Generated on 06-09-2026, 7:47 PM. 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 | ₹13.04 L | 22.8% | -21.9% | 75.9% |
| 3 Years | ₹36.00 L | ₹48.07 L | 19.6% | 1.7% | 30.8% |
| 5 Years | ₹60.00 L | ₹97.85 L | 19.5% | 8.9% | 29.3% |
| 7 Years | ₹84.00 L | ₹1.41 Cr | 14.9% | 14.2% | 15.4% |
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 | 22.8% | 14.4% | 17.1% | +8.5% |
| 3 Years | 19.6% | 11.1% | 15.2% | +8.5% |
| 5 Years | 19.5% | 10.4% | 16.3% | +9.1% |
| 7 Years | 14.9% | 10.6% | 15.8% | +4.3% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 22.7% | 18.9% | -10.5% | 91.5% | 0.90 | 5.06 | 94% | — | — |
| 3 Years | 21.8% | 22.6% | 11.2% | 37.5% | 3.08 | — | 100% | — | — |
| 5 Years | 22.2% | 23.4% | 12.7% | 32.4% | 3.17 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | -6.97 | 0.77 | 73.2% | 80.4% | -7.7% | -2.9% |
| 3 Years | +3.94 | 0.78 | 81.4% | 74.8% | 11.4% | 7.8% |
| 5 Years | +5.23 | 0.76 | 78.4% | 70.5% | 12.7% | 7.8% |
| 7 Years | +7.71 | 0.69 | 74.5% | 65.2% | 17.9% | 11.8% |
| 10 Years | +4.73 | 0.69 | 74.6% | 65.1% | 12.3% | 8.0% |
| 12 Years | +3.55 | 0.69 | 74.6% | 65.1% | 10.1% | 6.6% |
| 15 Years | +2.38 | 0.69 | 74.6% | 65.1% | 8.0% | 5.3% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | Bajaj Holdings & Investment Limited | 7.32% |
| 2 | HDFC Bank Limited | 7.29% |
| 3 | Power Grid Corporation of India Limited | 6.41% |
| 4 | Coal India Limited | 5.88% |
| 5 | Maharashtra Scooters Limited | 5.76% |
| 6 | ICICI Bank Limited | 5.14% |
| 7 | ITC Limited | 4.70% |
| 8 | Kotak Mahindra Bank Limited | 4.55% |
| 9 | HCL Technologies Limited | 4.48% |
| 10 | Maruti Suzuki India Limited | 3.84% |