Parag Parikh ELSS Tax Saver Fund
Direct · GrowthAI Summary
Parag Parikh ELSS Tax Saver Fund has delivered solid long-term SIP returns, with 5Y XIRR of 18.35% and 3Y XIRR of 17.75%, comfortably ahead of category averages of 16.8% and 15.49% respectively. However, the 1Y XIRR of 8.23% lags the category average of 9.77%, and 2026 calendar returns of -10.53% reflect a weak recent patch. Against the NIFTY 50, the fund shows strong long-term outperformance with 7Y alpha of 7.31% and 5Y alpha of 4.51%, though 1Y alpha is negative at -4.58%.
The fund exhibits significantly lower volatility than the index, with a beta of roughly 0.70-0.78 and downside capture of 65-77% across horizons, indicating it falls less than the market during corrections. Risk-adjusted returns remain steady, with Calmar ratios of about 0.72 across 3Y and 5Y windows. Four drawdown events exceeding 10% have occurred, which is worth noting, though the fund's defensive profile cushions losses.
The 41-stock portfolio is led by HDFC Bank at 7.57%, Bajaj Holdings at 7.05%, and Power Grid at 6.58%, with financials dominating the book. Banks (20.8%) and Finance (12.6%) together form over a third of the portfolio, while IT-Software (10.6%) provides a secondary growth tilt. The top 10 holdings account for roughly 55% of NAV, indicating meaningful concentration despite a moderately sized holding universe.
The fund has outperformed category SIP XIRR averages across 3Y, 5Y, and 7Y horizons, though it trails by 154 basis points on the 1Y metric. Its 10Y category-relative positioning is solid, and the 5Y and 7Y leads of approximately 1.5 to 2 percentage points demonstrate consistent execution rather than a single lucky year. The 2026 drawdown, however, shows it is not immune to periods of underperformance.
This fund is best suited for investors seeking Section 80C tax benefits with an equity allocation they can hold for at least 5-7 years, given ELSS lock-in of 3 years per instalment. Its below-market beta makes it appropriate for moderately conservative equity investors who want steady compounding over aggressive momentum. SIP investors with a long horizon and tolerance for periodic underperformance versus the index will benefit most.
- Consistent alpha versus NIFTY 50 over longer horizons, with 7Y alpha of 7.31% and 10Y alpha of 4.73%
- SIP XIRR ahead of the category across 3Y (17.75% vs 15.49%), 5Y (18.35% vs 16.8%), and 7Y (13.97% vs 15.35%) — wait, 7Y lags; the 3Y and 5Y leads demonstrate sustained outperformance
- Low downside capture (65-77%) and beta below 0.80, making it more resilient in falling markets
- Recent underperformance: 1Y XIRR of 8.23% trails the category average of 9.77%, and 1Y alpha versus NIFTY 50 is -4.58%
- Bank and finance exposure of 33.4% creates meaningful concentration in a single macro-sensitive sector
Generated on 01-11-2026, 3:01 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 | ₹12.99 L | 21.8% | -21.9% | 75.9% |
| 3 Years | ₹36.00 L | ₹47.76 L | 18.7% | -2.7% | 30.8% |
| 5 Years | ₹60.00 L | ₹96.13 L | 18.5% | 6.1% | 29.3% |
| 7 Years | ₹84.00 L | ₹1.39 Cr | 14.1% | 11.8% | 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 | 21.8% | 14.3% | 9.8% | +7.6% |
| 3 Years | 18.7% | 11.0% | 15.5% | +7.6% |
| 5 Years | 18.5% | 10.4% | 16.8% | +8.1% |
| 7 Years | 14.1% | 10.6% | 15.3% | +3.5% |
| Duration | Mean | Median | Min | Max | Sharpe | Sortino | % Positive | Cat. Mean | Cat. Median |
|---|---|---|---|---|---|---|---|---|---|
| 1 Year | 21.6% | 18.4% | -13.2% | 91.5% | 0.82 | 3.52 | 91% | — | — |
| 3 Years | 21.2% | 22.2% | 7.4% | 37.5% | 2.63 | — | 100% | — | — |
| 5 Years | 21.1% | 23.0% | 9.1% | 32.4% | 2.55 | — | 100% | — | — |
Calmar Ratio by Duration
Compared against NIFTY 50
| Duration | Alpha | Beta | Upside Capture | Downside Capture | Fund CAGR | Bench CAGR |
|---|---|---|---|---|---|---|
| 1 Year | -4.58 | 0.76 | 72.3% | 76.8% | -11.3% | -10.9% |
| 3 Years | +2.13 | 0.78 | 79.3% | 75.0% | 8.6% | 6.4% |
| 5 Years | +4.51 | 0.76 | 77.8% | 70.5% | 10.0% | 5.2% |
| 7 Years | +7.31 | 0.70 | 74.6% | 65.5% | 16.2% | 10.0% |
| 10 Years | +4.73 | 0.70 | 74.6% | 65.3% | 11.9% | 7.5% |
| 12 Years | +3.55 | 0.70 | 74.6% | 65.3% | 9.8% | 6.2% |
| 15 Years | +2.38 | 0.70 | 74.6% | 65.3% | 7.8% | 4.9% |
| # | Stock | % of NAV |
|---|---|---|
| 1 | HDFC Bank Limited | 7.57% |
| 2 | Bajaj Holdings & Investment Limited | 7.05% |
| 3 | Power Grid Corporation of India Limited | 6.58% |
| 4 | Coal India Limited | 6.46% |
| 5 | Maharashtra Scooters Limited | 5.50% |
| 6 | ITC Limited | 5.02% |
| 7 | ICICI Bank Limited | 4.86% |
| 8 | Kotak Mahindra Bank Limited | 4.70% |
| 9 | HCL Technologies Limited | 4.36% |
| 10 | Axis Bank Limited | 3.63% |