Franklin India ELSS Tax Saver Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 4, 2026
- Posted by: Harsh Piplani
- Category: Mutual Funds
Franklin India ELSS Tax Saver Fund Direct Growth Plan currently has a NAV of ₹1,606.5034 as of 03 Sep 2026 and an AUM of ₹6,239 Cr. Its 1-year, 3-year and 5-year returns are -1.08%, 11.95% and 12.42%, and the scheme carries a High Risk tag.
Our view is that this is a growth-oriented ELSS with a clear equity tilt and a portfolio led by financials, which can support long holding periods but can also move unevenly over shorter stretches. The longer-term return pattern is healthier than the latest 1-year figure, so the fund looks better suited to investors who can stay invested through swings rather than those seeking steady near-term outcomes.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹1,606.5034 as of 03 Sep 2026 |
| AUM | ₹6,239 Cr |
| Expense Ratio | 1.01% |
| 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 | R. Janakiraman, Rajasa Kakulavarapu |
The fund is managed by R. Janakiraman and Rajasa Kakulavarapu.
Source data date: as of 03 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -1.68% | -3.01% |
| 3M | 4.38% | 1.95% |
| 1Y | -1.08% | -4.4% |
| 3Y | 11.95% | 5.74% |
| 5Y | 12.42% | 6.27% |
The recent picture is mixed but not weak in context. Over 1 month, the fund declined less than the benchmark, while over 3 months it moved ahead of the benchmark by a wider margin. That tells us the fund has still been able to participate in recoveries even after short bursts of weakness.
The 1-year figure is the main soft spot, but even there the fund stayed better than the benchmark. The comparison with Nifty 50 is important: the fund has outpaced the index at every displayed horizon, which suggests active stock selection has added value over time, even if the path has not been smooth.
The longer horizon is more encouraging. Both the 3-year and 5-year returns remain comfortably positive, and the 5-year number is close to the 3-year figure, which points to a fairly steady compounding profile rather than a sharp, one-off burst. The 1-year dip sits alongside a longer pattern of resilience, so the latest year looks more like a pause than a break in the fund’s broader trend.
For investors, that combination matters. The fund has shown that it can recover after softer stretches, but the uneven shorter-term path also fits a category where volatility is part of the experience. On balance, our reading is that the fund has delivered better long-run outcomes than its benchmark, while still asking investors to accept periodic drawdowns.
Source data date: as of 03 Sep 2026
Should you BUY or HOLD Franklin India 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 Franklin India ELSS Tax Saver? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Franklin India ELSS Tax Saver Fund Direct Growth Plan | -1.08% | 11.95% | 12.42% |
| Quant ELSS Tax Saver Fund Direct Growth Plan | 15.65% | 15.72% | 15.89% |
| Motilal Oswal ELSS Tax Saver Fund Direct Growth Plan | 13.9% | 22.94% | 17.44% |
| JM ELSS-Tax Saver Fund Direct Growth Plan | 9.7% | 17% | 14.76% |
| ITI ELSS Tax Saver Fund Direct Growth Plan | 9.49% | 18.19% | 13.9% |
| Edelweiss ELSS Tax saver Fund Direct Growth Plan | 9.32% | 14.94% | 12.74% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
Against the peer set, the fund’s 1-year return trails every peer listed here, which means the latest stretch has been softer than the group’s better recent outcomes. The 3-year and 5-year numbers also sit below the stronger peer figures available, so the fund does not lead on longer-horizon growth either. Even so, its returns remain positive over 3 years and 5 years, which keeps the longer-term picture constructive rather than weak.
The peer comparison tells two stories at once. Near term, the fund has clearly been more subdued than the stronger peer funds; over longer horizons, it remains a viable compounding option, just not the most assertive one in this sample. That split is useful for investors who want consistency across cycles more than fast-paced upside.
Source data date: as of 03 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| HDFC Bank Ltd | Bank | 7.82% |
| ICICI Bank Ltd | Bank | 7.59% |
| Axis Bank Ltd | Bank | 4.88% |
| State Bank of India | Bank | 4.67% |
| Larsen & Toubro Ltd | Infrastructure | 4.53% |
| Call, Cash & Other Assets | Cash & Cash Equivalents and Net Assets | 3.85% |
| Eternal Ltd | Retailing | 3.64% |
| Infosys Ltd | IT | 3.46% |
| Bharti Airtel Ltd | Telecom | 3.35% |
| HCL Technologies Ltd | IT | 3.27% |
The top 10 holdings account for approximately 47.06% of the portfolio.
To see all holdings, visit the Franklin India ELSS Tax Saver Fund Direct Growth Plan page
The largest position, HDFC Bank Ltd, stands at 7.82%, and the next few positions are not far behind, with ICICI Bank Ltd at 7.59% and Axis Bank Ltd at 4.88%. That structure suggests the fund’s largest bets are meaningful but not outsized on their own, which may help avoid extreme dependence on a single stock.
The fall from the first holding to the tenth is gradual rather than steep, moving from 7.82% down to 3.27%. That pattern indicates a fairly layered book, where several positions can influence results instead of just one or two dominating every move.
At the same time, the top 10 holdings together make up 47.06% of the portfolio, so a substantial share is concentrated in a limited set of positions. With 42 holdings disclosed, the fund still has a longer tail beyond the largest names, but the visible allocation suggests the core positions are likely to have greater influence on returns than the smaller holdings.
Source data date: as of 03 Sep 2026
Who should invest
This fund suits investors who are comfortable with High Risk equity exposure and can stay invested for a long horizon. The 3-year and 5-year return pattern is positive, but the 1-year result shows that shorter stretches can be uneven, so patience matters.
It also fits investors who want ELSS tax-saving exposure without relying on the benchmark for growth, because the fund has stayed ahead of Nifty 50 across the displayed periods. The main trade-off is that the fund asks for tolerance of volatility in exchange for the chance of better compounding over time.
Given the portfolio’s heavy presence in banks and other large listed businesses, the scheme may appeal to investors who are comfortable with a core equity style rather than a defensive or low-fluctuation approach. It is better matched to disciplined, multi-year investing than to money that may be needed soon.
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 |
Exit load: No exit load after holding period.
Source data date: as of 03 Sep 2026
Frequently asked questions
What is the current NAV of Franklin India ELSS Tax Saver Fund Direct Growth Plan?
The current NAV is ₹1,606.5034 as of 03 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year return is -1.08%, its 3-year return is 11.95%, and its 5-year return is 12.42%.
How has the fund performed against the benchmark?
It has stayed ahead of Nifty 50 across the displayed 1-month, 3-month, 1-year, 3-year and 5-year periods. The gap is especially clear over the longer horizons.
How does it compare with the peer funds shown here?
Its recent and longer-term returns are below the stronger peer figures shown here, especially on the 1-year and 3-year measures. It still has positive 3-year and 5-year returns, which keeps the long-run picture constructive.
What is the minimum SIP amount?
The minimum SIP amount is ₹500.
Who manages the fund and what is its exit load?
The fund is managed by R. Janakiraman and Rajasa Kakulavarapu. It has no exit load after the holding period.
Bottom line
Franklin India ELSS Tax Saver Fund Direct Growth Plan has a weaker 1-year result than its longer-term record, but the 3-year and 5-year numbers still show positive compounding and a better shape than the benchmark. Against the peer set, its recent and longer-horizon returns are more muted, so the fund looks steadier than standout. The portfolio is anchored by banks, which can keep the style focused but also makes the fund more dependent on financials. It is best viewed as a High Risk ELSS for patient investors.
Published on 4 September 2026 at 11:43 AM 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.
