Mahindra Manulife ELSS Tax Saver Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Mahindra Manulife ELSS Tax Saver Fund Direct Growth Plan is at ₹32.1488 as of 10 Sep 2026, with scheme AUM of ₹894 Cr. Its 1-year, 3-year and 5-year returns are -4.67%, 7.71% and 9.54%, and the fund sits in the High Risk category. Our view is that this is a tax-saving equity fund that has been steadier over longer horizons than in the last year, but the short-term swing means it still suits investors who can stay invested through uneven market phases.

Its benchmark comparison also points to a mixed picture: the fund has stayed ahead of the NIFTY 50 over 3 years and 5 years, but the recent 1-year return has lagged. That makes the scheme more suitable for investors who want ELSS exposure and are comfortable with market risk, a 3-year lock-in and a portfolio that leans meaningfully on a few large banking and large-cap positions.

Quick facts

Particular	Details
NAV	₹32.1488 as of 10 Sep 2026
AUM	₹894 Cr
Expense Ratio	0.6%
Launch Date	18 Oct 2016
Min SIP	₹500
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Equity
Exit Load	No exit load
Fund Managers	Neelesh Dhamnaskar

The fund is managed by Neelesh Dhamnaskar.

Source data date: as of 10 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-3.98%	-4.06%
3M	4.02%	1.37%
1Y	-4.67%	-7.31%
3Y	7.71%	6.07%
5Y	9.54%	5.91%

The fund’s recent pattern is uneven, but it has not been erratic relative to its benchmark. Over 1 month, the fund fell slightly less than the NIFTY 50, while over 3 months it recovered more strongly than the index. That suggests the scheme has been able to participate in short rebounds, even though the 1-year figure still remains negative.

The 1-year result is better than the benchmark’s 1-year decline, but both numbers show that the last 12 months were difficult for equity investors. For us, that matters more than the narrow gap between the two figures: the fund has preserved some relative resilience, yet it has not escaped the broad market pressure that has weighed on ELSS funds with equity exposure.

The longer horizon tells a more constructive story. At 3 years and 5 years, the fund has stayed ahead of the benchmark, which supports the case for patience in a tax-saving equity allocation. The 5-year return is also stronger than the 3-year figure, so the compounding pattern has been better over a full cycle than over the latest year.

Our read is that the fund’s profile is best understood as one where medium- to long-term holding discipline matters more than short-term positioning. The recent drawdown does not erase the longer record, but it does remind investors that the path to those returns has not been smooth.

Source data date: as of 10 Sep 2026

Should you BUY or HOLD Mahindra Manulife 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.

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Peer comparison

Fund	1Y return	3Y return	5Y return
Mahindra Manulife ELSS Tax Saver Fund Direct Growth Plan	-4.67%	7.71%	9.54%
Quant ELSS Tax Saver Fund Direct Growth Plan	14.4%	14.49%	15.61%
Motilal Oswal ELSS Tax Saver Fund Direct Growth Plan	13.44%	22.35%	17.6%
JM ELSS-Tax Saver Fund Direct Growth Plan	8.95%	16.04%	14.66%
ITI ELSS Tax Saver Fund Direct Growth Plan	7.31%	17.13%	13.4%
Sundaram LT Micro Cap Tax Adv Fund-Sr IV- Direct Growth Plan	7.26%	11.36%	15.84%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

The current fund’s 1-year return trails all five peers listed here, which shows that the latest stretch has been relatively weak compared with the peer set. That said, the longer view is more balanced: its 3-year and 5-year returns are lower than the stronger peers, but they still remain positive and ahead of the benchmark over the same horizons.

The comparison therefore tells two different stories. In the short term, the fund has struggled to keep pace with the peer group; over 3 years and 5 years, it has produced usable tax-saver equity returns, though not at the level shown by the stronger peer numbers. Our view is that this makes the scheme more of a steady long-term ELSS than a fund whose recent momentum stands out.

Source data date: as of 10 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
ICICI Bank Limited	Bank	9.9%
HDFC Bank Limited	Bank	6.71%
Bharti Airtel Limited	Telecom	4.09%
Triparty Repo	Cash & Cash Equivalents and Net Assets	3.88%
Bajaj Finance Ltd	Finance	3.64%
Reliance Industries Limited	Crude Oil	3.1%
Larsen & Toubro Limited	Infrastructure	2.95%
Infosys Limited	IT	2.58%
TVS Motor Company Limited	Automobile & Ancillaries	2.51%
Kotak Mahindra Bank Ltd	Bank	2.39%

The largest holding, ICICI Bank Limited, stands at 9.9%, so it is large enough to matter but not so large that it dominates the scheme on its own. The next few positions are also meaningful, with HDFC Bank Limited at 6.71% and Bharti Airtel Limited at 4.09%, which shows that influence is spread across several core names rather than resting on a single bet.

The fall from the largest holding to the tenth is moderate rather than abrupt: the tenth holding is 2.39%, which is well below the top two but still material. That pattern suggests a barbell of a few larger positions and a wider set of smaller contributors, so individual stock moves may matter, but not in a purely top-heavy way.

With 41.75% of the portfolio in the top 10 disclosed holdings and 55 total disclosed holding rows, the portfolio looks moderately concentrated at the top and then more dispersed in the tail. In our view, that mix may give the fund enough active exposure to express stock selection while still leaving room for diversification across a long list of holdings.

To see all holdings, visit the Mahindra Manulife ELSS Tax Saver Fund Direct Growth Plan page

Source data date: as of 10 Sep 2026

Who should invest

This fund fits investors who are comfortable with High Risk equity exposure and who can tolerate a weak one-year stretch in exchange for a more acceptable longer-term record. The 3-year and 5-year returns, together with the benchmark outperformance over those horizons, point to an ELSS that may work better for patient investors than for those looking for stable near-term outcomes.

The 3-year lock-in also means the money needs time to work, so a longer horizon is important. The main trade-off is clear: you get tax-saving equity exposure and the possibility of better compounding over time, but you also accept meaningful short-term volatility and the chance that recent returns may look much weaker than the longer record.

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

No exit load applies.

Source data date: as of 10 Sep 2026

Frequently asked questions

What is the current NAV of Mahindra Manulife ELSS Tax Saver Fund Direct Growth Plan?

The current NAV is ₹32.1488 as of 10 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?

The fund’s 1-year, 3-year and 5-year returns are -4.67%, 7.71% and 9.54%.

How has the fund done versus its benchmark?

It has done better than the NIFTY 50 over 3 years and 5 years, while the 1-year return has still been negative. Over 1 month it was slightly better than the benchmark, and over 3 months it was clearly ahead.

How does it compare with the peer funds listed here?

Its latest 1-year return is weaker than the peer funds listed here. Over 3 years and 5 years, it remains positive, but several peers have delivered stronger numbers over the same horizons.

What is the minimum SIP amount?

The minimum SIP amount is ₹500.

Who manages the fund and what is the exit load?

The fund is managed by Neelesh Dhamnaskar. No exit load applies.

Bottom line

Mahindra Manulife ELSS Tax Saver Fund Direct Growth Plan has a mixed short-term record but a more constructive longer-term profile. The 1-year return has been weak, while the 3-year and 5-year returns are positive and ahead of the benchmark. Against peers, the fund looks less strong on recent performance, but its long-term ELSS case is still intact. The portfolio is led by a few sizeable bank and large-cap positions, so it suits investors who can accept market swings in exchange for tax-saving equity exposure.

Published on 11 September 2026 at 6:24 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.