Which fund ctegory is better diversified or ELSS

Since you are a moderate to moderately high risk taker, any category of equity mutual funds will be suitable for you provided you have an investment horizon of 5 years+.

The choice between diversified and ELSS funds will depend upon your investment needs. ELSS Funds are also diversified equity funds but they are locked-in for 3 years as they offer tax rebate under section 80C of the Income Tax Act 1961. If you want to save taxes (Section 80C allows maximum investment of Rs 150,000 in a year), then you should first invest in ELSS funds upto the maximum limit and then invest the balance amount in diversified equity funds.

In case you do not need to invest in ELSS funds then invest in diversified equity funds which are open ended and best suited to your risk profile.

While selecting funds, mostly people look at the past performance but that should not be the only criteria while selecting a fund. Apart from long term returns, say 10 years, you should look at the consistency of the returns over the years and rolling returns of the funds.

Please read https://www.advisorkhoj.com/post-your-queries/How-are-rolling-returns-of-a-mutual-fund-calculated

Once you have figured out some fund names you can check their rolling returns from here - https://www.advisorkhoj.com/mutual-funds-research/rolling-returns. This will tell you how the fund performance evolved over a period of time vis-a-vis its benchmark.

The other tool you can refer on our website is top consistent mutual fund performers https://www.advisorkhoj.com/mutual-funds-research/top-consistent-mutual-fund-performers. Here we have curated the top consistent funds of a particular category at one place.

Hope you find the above helpful in selecting your desired funds.

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