Should I switch from HDFC Long Term Advantage Fund

Please note that HDFC Long Term Advantage Fund is an ELSS Fund and cannot be switch or redeemed within 3 years from the date of investment. As ELSS Fund provides tax benefit under Section 80C of the Income Tax Act 1961, therefore, there is a lock-in period of 3 years.

HDFC Long Term Advantage Fund has given over 23% annualized return since inception and is one of top wealth creators in the ELSS category. However, the fund could not perform in the last 4-5 years on the expected lines and therefore, it could not beat the category return for 3 and 5 years period. However, the fund performance has come back in the last one year and the fund could beat category and benchmark returns with good margin in the last 1 year. The category ranking has also improved in the last 1 year and the fund could match or better the peer group returns as well.

We think, you should hold onto the fund, even if it is not locked-in, and review the performance over another year and then take a call. In case, you do not want to wait, you may redeem and invest in other ELSS funds/ open ended fund as per your investment needs. You can check the top consistent performing funds from here https://www.advisorkhoj.com/mutual-funds...

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