Should I exit ELSS investment after 3 years as return is low

You have invested in 3 top performing ELSS funds. Remember, if you are investing in ELSS funds or any other equity fund, you should have an investment horizon of minimum 5 years and should not get worried unnecessarily due to short term under performance.

We do not know the exact date of your investment but as you have written, you invested in January 2017, we have calculated the returns assuming investment date as 1st January 2015. We found that these 3 funds have given around 9% annualized return since then and absolute return from the date of investment till today ranges from 21-23.5% which is not bad at all! Please check this Mutual Fund lump sum calculator. You have written that the value of your investments are currently at Rs 57,000, seems wrong, unless it is in dividend pay-out option. If you factor in the dividend pay-outs then the returns will be what we have mentioned above.

We think you should hold on to your investments for at least 5 years to get the desired returns. Also, the ranking/ rating of a fund keeps going up or coming down at certain intervals and you should not worry about that. If you have selected good funds at the beginning of your investments you should give sufficient time to the fund manager to perform. Thank for writing to Advisorkhoj!