Union ELSS Tax Saver Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 10, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Union ELSS Tax Saver Fund Direct Growth Plan has a NAV of ₹71.83 as of 09 Sep 2026 and a scheme AUM of ₹871 Cr. Its 1-year, 3-year and 5-year returns are 1.2%, 10.42% and 10.64%, and it carries a High Risk profile.
Our view is that this is a fund for investors who can tolerate uneven short-term outcomes and stay invested through a full market cycle. The longer-term return pattern is better than the recent 1-year outcome, but the fund has also lagged its benchmark on the same horizons, so the appeal is more about tax-saving equity exposure than steady outperformance.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹71.83 as of 09 Sep 2026 |
| AUM | ₹871 Cr |
| Expense Ratio | 1.36% |
| Launch Date | 01 Jan 2013 |
| Min SIP | ₹500 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Equity |
| Exit Load | No exit load after holding period |
| Fund Managers | Vinod Malviya, Sanjay Bembalkar |
The fund is managed by Vinod Malviya and Sanjay Bembalkar.
Source data date: as of 09 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -2.27% | -4.69% |
| 3M | 6.3% | 0.93% |
| 1Y | 1.2% | -7.16% |
| 3Y | 10.42% | 6% |
| 5Y | 10.64% | 5.87% |
Recent behaviour has been uneven but not directionless. The 1-month return was negative, yet it still held up better than the benchmark over the same period. Over 3 months, the fund recovered more strongly than the index, which tells us the short-term path has been better than the benchmark’s recent drift.
The bigger picture is more mixed. The 1-year return is only 1.2%, so the fund has not turned that recent recovery into a strong trailing 12-month result. That said, the 3-year and 5-year figures are both above 10%, which shows that longer holding periods have been more rewarding than the latest one-year snapshot.
Against the benchmark, the fund is ahead across every period shown, including the 3-year and 5-year windows. Our view is that this is a useful sign of relative resilience, but it also highlights a different issue: the benchmark itself has been weak over parts of the cycle, so the fund’s lead does not automatically translate into strong absolute returns.
The time pattern suggests a fund that can participate in recovery, but not in a straight line. For investors, that means the longer-term compounding story is more relevant than the latest monthly move, yet even that story has been modest rather than standout.
Source data date: as of 09 Sep 2026
Should you BUY or HOLD Union ELSS Tax Saver?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding Union ELSS Tax Saver? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Union ELSS Tax Saver Fund Direct Growth Plan | 1.2% | 10.42% | 10.64% |
| Motilal Oswal ELSS Tax Saver Fund Direct Growth Plan | 15.62% | 22.46% | 17.66% |
| Quant ELSS Tax Saver Fund Direct Growth Plan | 15.48% | 14.66% | 15.71% |
| JM ELSS-Tax Saver Fund Direct Growth Plan | 9.59% | 16.11% | 14.7% |
| Sundaram LT Micro Cap Tax Adv Fund-Sr IV- Direct Growth Plan | 8.53% | 11.5% | 15.93% |
| ITI ELSS Tax Saver Fund Direct Growth Plan | 7.64% | 17.03% | 13.34% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
On recent returns, the fund trails the stronger peer figures by a wide margin, especially the 1-year numbers from Motilal Oswal and Quant. The longer-term comparison is more balanced: its 3-year and 5-year returns are below several peers with available data, but they are not the weakest in every case.
The short-term and longer-term pictures therefore tell different stories. In the near term, the fund has been much quieter than the strongest peers; over 3 years and 5 years, it has delivered moderate compounding, but still with less momentum than the better-performing peer set. That makes the comparison useful for investors who want to judge persistence rather than one-period noise.
Source data date: as of 09 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| ICICI Bank Ltd. | Bank | 7.42% |
| HDFC Bank Ltd. | Bank | 4.64% |
| Axis Bank Ltd. | Bank | 3.01% |
| Bharti Airtel Ltd. | Telecom | 2.99% |
| Reliance Industries Ltd. | Crude Oil | 2.49% |
| Gabriel India Ltd. | Automobile & Ancillaries | 2.32% |
| Larsen & Toubro Ltd. | Infrastructure | 2.13% |
| Eternal Ltd. | Retailing | 1.98% |
| State Bank of India | Bank | 1.93% |
| Shriram Finance Ltd. | Finance | 1.92% |
The largest holding, ICICI Bank Ltd., carries a weight of 7.42%, so it is the single position most likely to influence near-term portfolio behaviour. The drop from the first holding to the tenth is fairly gradual, with each position still remaining meaningful rather than collapsing sharply into tiny weights.
That pattern suggests a portfolio that is not dominated by just one or two names, even though financials clearly matter a lot in the visible holdings. The top 10 holdings account for approximately 30.83% of the portfolio, and with 73 disclosed holdings overall, the rest of the book likely adds breadth beyond the names shown here.
Our view is that this mix may help moderate single-stock dependence while still leaving enough concentration for the largest positions to matter. It is not a very narrow portfolio, but it is also not so spread out that the top names lose relevance.
To see all holdings, visit the Union ELSS Tax Saver Fund Direct Growth Plan page
Source data date: as of 09 Sep 2026
Who should invest
This fund suits investors with a high risk tolerance and a willingness to hold through market swings. The 1-year outcome is soft, but the 3-year and 5-year figures show that the fund has still compounded over longer stretches, which makes a longer investment horizon more relevant than short-term timing.
The main trade-off is that the fund has done better than the benchmark across the periods shown, but without delivering especially strong absolute returns in the most recent year. Investors who want equity-linked tax savings and can accept uneven progress may find the profile workable, while those seeking steadier short-term gains may not.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
The exit load is nil after the holding period.
Source data date: as of 09 Sep 2026
Frequently asked questions
What is the current NAV of Union ELSS Tax Saver Fund Direct Growth Plan?
The current NAV is ₹71.83 as of 09 Sep 2026.
What are the 1-year, 3-year and 5-year returns?
The fund’s 1-year return is 1.2%, its 3-year return is 10.42%, and its 5-year return is 10.64%.
How does the fund compare with its benchmark?
It has outperformed the benchmark across 1 month, 3 months, 1 year, 3 years and 5 years. The gap is most visible over the longer windows, although the absolute return level remains moderate.
How does it compare with peer ELSS funds on recent returns?
Its 1-year return is lower than the stronger peer figures shown, while the 3-year and 5-year numbers are also below several peer funds with available data. The short-term comparison is clearly weaker than the best peer results.
Is there a minimum SIP amount?
Yes, the minimum SIP amount is ₹500.
Who manages the fund and what is the exit load?
The fund is managed by Vinod Malviya and Sanjay Bembalkar. The exit load is nil after the holding period, and the tax treatment is 20% for units held less than 1 year and 12.5% for units held more than 1 year.
Bottom line
Union ELSS Tax Saver Fund Direct Growth Plan shows a clearer long-term story than a recent one, with the latest 1-year result lagging its own 3-year and 5-year outcomes. It has also stayed ahead of the benchmark across the periods shown, but the return profile is still moderate rather than strong. The visible portfolio is led by financials and the top holdings are meaningful without dominating the entire book. That makes it more suitable for high-risk investors who want an ELSS equity fund and can stay invested for the longer term.
Published on 10 September 2026 at 3:29 PM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.