Motilal Oswal ELSS Tax Saver Fund: One of the best performing ELSS

Investors who opted for the Old Tax Regime can claim deductions of up to Rs 1.5 lakhs from their taxable income by investing in eligible schemes under Section 80C. Equity Linked Savings Schemes, which are market linked investments, offer tax savings and wealth creation opportunities for investors. In this article, we will review Motilal Oswal ELSS Tax Saver Fund, which is one the best performing ELSS.

Higher wealth creation potential compared to PPF

The chart below shows the growth of Rs 1 lakh investment in Motilal Oswal ELSS Tax Saver Fund versus Public Provident Fund since the inception of the fund. You can see that despite higher volatility, the wealth creation potential of Motilal Oswal ELSS Tax Saver Fund is significantly higher over long investment tenure.

Source: Advisorkhoj Research, 17^th January 2025

Outperformed the benchmark index

The chart below shows the growth of Rs 1 lakh investment in Motilal Oswal ELSS Tax Saver Fund versus it’s benchmark index Nifty 500 TRI since the inception of the fund. You can see that the fund has outperformed its benchmark.

Source: Advisorkhoj Research, as on 17^th January 2025

Superior risk adjusted returns

Sharpe ratio is a measure of risk adjusted returns. We looked at the Sharpe Ratio of ELSS funds which have completed 3 years. Motilal Oswal ELSS Tax Saver Fund (marked in red) has the highest Sharpe Ratio.

Source: Advisorkhoj Research, as on 31^st December 2024

Motilal Oswal ELSS Tax Saver Fund (marked in red) also has highest alpha (risk adjusted returns relative to benchmark index) among all ELSS funds that have completed 3 years.

Source: Advisorkhoj Research, as on 31^st December 2024

Consistent outperformance versus benchmark and peers

The chart below shows the 3 year rolling returns (ELSS has lock-in period of 3 years) of Motilal Oswal ELSS Tax Saver Fund versus its benchmark index over the last 5 years. You can see that the fund has beaten the benchmark index in different market conditions. The fund has given 15%+ CAGR returns in more than 90% of the instances (observations).

Source: Advisorkhoj Rolling Returns, 17^th January 2025

The fund has also outperformed the category average rolling returns in different market conditions in the last 5 years.

Source: Advisorkhoj Rolling Returns, 17^th January 2025

Consistently a top quartile fund

The graphic below shows the quartile rank of Motilal Oswal ELSS Tax Saver Fund for the last 12 quarters. The fund was in top quartile 9 times in the last 12 quarters. The fund has ranked in the top quartile for 7 consecutive quarters, including the quarter that end on 31^st December 2024.

Source: Advisorkhoj Research, as on 31^st December 2024

Wealth creation

The chart below shows the growth of Rs 10,000 SIP in Motilal Oswal ELSS Tax Saver Fund since the inception of the scheme. The SIP performance illustrates the wealth potential of the fund, while saving taxes every year.

Portfolio positioning

High Quality portfolio of around 31 stocks with strong portfolio earnings growth. The fund has a high-quality portfolio, with focus on domestic growth. More than 70% of the scheme assets are invested in midcap and small cap stocks.

Source: Motilal Oswal MF, as on 31^st December 2024

Who should invest in Motilal Oswal ELSS Tax Saver Fund?

• Investors looking to save taxes under Section 80C.


• Investors who want capital appreciation or wealth creation over long investment tenures


• The scheme has a lock-in period of 3 years. You cannot redeem units of the scheme before the completion of 3 years from the investment date.


• Investors with high-risk appetites

Investors should consult their financial advisors or mutual fund distributors if Motilal Oswal ELSS Tax Saver Fund is suitable for their investment needs.

To know more about Motilal Oswal ELSS Tax Saver Fund, click here.