Parag Parikh ELSS vs Axis, Mirae and Quant ELSS

From WebNotes, a public knowledge base. Last updated . Reading time ~14 min.

The Parag Parikh ELSS Tax Saver Fund is the Equity Linked Savings Scheme (ELSS) of PPFAS Mutual Fund, launched on 4 July 2019 by the AMC’s then ELSS proposition team. ELSS schemes are open-ended diversified equity mutual funds with a statutory three-year lock-in period from the date of each investment and qualify for Section 80C deduction under the Income-tax Act, 1961 up to Rs 1.50 lakh per financial year (under the Old Tax Regime). The Parag Parikh ELSS Tax Saver Fund competes in the broader ELSS category with peer schemes including the Axis Mutual Fund Axis ELSS Tax Saver Fund (the long-standing category leader by AUM until 2024), the Mirae Asset Mutual Fund Mirae Asset ELSS Tax Saver Fund, and the Quant Mutual Fund Quant ELSS Tax Saver Fund.

The Parag Parikh ELSS Tax Saver Fund is co-managed by Rajeev Thakkar and Raunak Onkar, with Rukun Tarachandani on the equity team. The scheme operates with a structurally similar investment philosophy to the Parag Parikh Flexi Cap Fund, including up to 35 per cent overseas equity allocation, focused portfolio construction, and the broader PPFAS investment philosophy of value investing, margin of safety, and behavioural finance. The scheme AUM stood at approximately Rs 5,260.64 crore as of April 2026.

The peer ELSS schemes operate with different investment approaches:

  • Axis ELSS Tax Saver Fund (formerly Axis Long Term Equity Fund): a quality-growth large-cap-leaning scheme, historically managed by Shreyash Devalkar
  • Mirae Asset ELSS Tax Saver Fund: a quality-growth scheme with broader multi-cap exposure, managed by Neelesh Surana and team
  • Quant ELSS Tax Saver Fund: a quantitative-momentum scheme operating under the AMC-wide VLRT framework

This comparison covers the structural similarities (three-year lock-in, Section 80C eligibility, equity-oriented tax status) and the philosophical and operational differences across the four schemes.

Comparison overview

DimensionParag Parikh ELSSAxis ELSSMirae Asset ELSSQuant ELSS
AMCPPFASAxisMiraeQuant
Launch4 July 201929 December 200928 December 20152014 predecessor
AUM (May 2026)Rs 5,260 croreRs 35,000 to 40,000 croreRs 28,000 to 32,000 croreRs 12,000 to 14,000 crore
Lock-in3 years3 years3 years3 years
80C eligibleYesYesYesYes
Overseas allocationUp to 35 per centNilNilNil
Portfolio size30 to 40 stocks50 to 70 stocks60 to 70 stocks40 to 50 stocks
Investment styleValue, focused, internationalQuality growthQuality growthQuant momentum
Expense ratio (direct)Approximately 0.84 per centApproximately 0.65 per centApproximately 0.65 per centApproximately 0.65 per cent
BenchmarkNifty 500 TRINifty 500 TRINifty 500 TRINifty 500 TRI

Lock-in period

All four schemes have the same statutory three-year lock-in period from the date of each unit purchase. The lock-in is a regulatory feature of the ELSS category under SEBI Mutual Funds Regulations 1996 and the corresponding tax law requirements. Each SIP installment is locked in separately for three years from its respective allotment date, meaning a 12-month SIP results in 12 separate lock-in tranches.

Section 80C deduction

Each ELSS investment up to Rs 1.50 lakh per financial year is eligible for Section 80C deduction (along with other 80C eligible instruments such as Public Provident Fund, Employees Provident Fund, National Savings Certificate, Sukanya Samriddhi Yojana, life insurance premium, principal repayment of home loan, and so on). The aggregate 80C limit is Rs 1.50 lakh per individual per financial year.

The Section 80C deduction is available only under the Old Tax Regime. Under the New Tax Regime (default for individuals from FY 2023-24 onwards), the 80C deduction is not available. Investors choosing the New Tax Regime do not derive the tax-deduction benefit from ELSS but still benefit from the equity-oriented tax treatment on capital gains.

The PPFAS ELSS Tax Saver Fund Section 80C treatment is documented separately.

Investment approach

The Parag Parikh ELSS Tax Saver Fund operates with the PPFAS investment philosophy:

The Axis ELSS Tax Saver Fund operates a quality-growth approach focused on high-return-on-equity companies with strong franchise characteristics. The portfolio typically has 50 to 70 stocks with significant exposure to private financials, IT services, and consumer staples.

The Mirae Asset ELSS Tax Saver Fund operates a quality-growth multi-cap approach with broader cap-segment diversification than Axis, with portfolio size in the 60 to 70 stocks range.

The Quant ELSS Tax Saver Fund operates the VLRT framework with high portfolio turnover and momentum-driven stock rotation, structurally different from the other three schemes.

International allocation in PPFAS ELSS

A distinctive feature of the Parag Parikh ELSS Tax Saver Fund is the inclusion of up to 35 per cent overseas equity allocation, in line with the broader PPFAS doctrine of international diversification. The peer Axis, Mirae and Quant ELSS schemes are domestic-only with no overseas exposure.

Following the SEBI MF overseas investment cap freeze of February 2022, the overseas allocation at Parag Parikh ELSS has compressed from its earlier peak. As of mid-2026 the overseas exposure is in the 8 to 12 per cent range, lower than at PPFCF because the ELSS scheme is newer and its overseas book is smaller.

Performance comparison

The Parag Parikh ELSS Tax Saver Fund Direct Plan has delivered CAGR since inception (July 2019) in the 19 to 22 per cent range, leading or close to leading the ELSS category over the period.

The Axis ELSS Tax Saver Fund delivered category-leading returns during the 2015 to 2020 period under prior management but has experienced relative performance compression in the 2022 to 2024 period. Mirae Asset ELSS Tax Saver Fund has delivered steady category-competitive returns. Quant ELSS Tax Saver Fund delivered exceptionally high short-term returns during the 2022 to 2024 momentum-favourable regime.

The 5-year and 10-year CAGR figures for the peer schemes are available on Value Research and Morningstar India.

Expense ratio

The Parag Parikh ELSS Tax Saver Fund Direct Plan expense ratio is approximately 0.84 per cent. The peer schemes have lower Direct Plan expense ratios in the 0.55 to 0.70 per cent range. The Regular Plan expense ratios are approximately 1.80 to 1.90 per cent across all four schemes.

The PPFAS expense ratio is somewhat higher than the peer average partly because of the smaller AUM (Rs 5,260 crore versus Rs 28,000 to 40,000 crore for the larger peers), which creates lower scale economies. As the AUM grows, the expense ratio may compress.

Tax efficiency

All four schemes are equity-oriented mutual funds maintaining at least 65 per cent in Indian equity, qualifying for equity mutual fund taxation in India:

  • Short-term capital gains within the three-year lock-in period are not realisable, so Section 111A is not applicable for ELSS units (because the lock-in prevents redemption within 12 months)
  • Long-term capital gains on redemption after the three-year lock-in are taxed at 10 per cent on gains exceeding Rs 1.25 lakh per annum under Section 112A

The tax treatment on the gain side is identical across the four schemes. The tax-deduction benefit on the investment side (Section 80C up to Rs 1.50 lakh per year) is also identical.

The PPFAS ELSS additionally benefits from the PPFAS tax-aware portfolio management approach (low internal turnover) which preserves the long-term compounding advantage relative to high-turnover peers.

Distribution

All four ELSS schemes are distributed through respective AMC platforms, the same third-party platforms (Zerodha Coin, Groww, Kuvera, ET Money, Paytm Money, INDmoney), and through distributors operating under the AMFI ARN registration framework. PPFAS uses PPFAS SelfInvest as its direct platform.

Recent developments

The Parag Parikh ELSS Tax Saver Fund crossed Rs 5,000 crore AUM in early 2026. The PPFAS AMC launched the Parag Parikh Dynamic Asset Allocation Fund in February 2024 and the Parag Parikh Large Cap Fund in February 2026.

The Axis ELSS Tax Saver Fund (renamed from Axis Long Term Equity Fund) has experienced AUM growth moderation in 2024 to 2026. Mirae Asset ELSS Tax Saver Fund has continued steady AUM growth. Quant ELSS Tax Saver Fund experienced rapid AUM growth in 2022 to 2024 followed by moderation.

The shift towards the New Tax Regime as the default option from FY 2023-24 has somewhat reduced the structural attractiveness of ELSS as a tax-planning vehicle, with some investors choosing to forgo the 80C deduction and instead invest in non-ELSS equity funds without the three-year lock-in.

Criticism and debates

The Parag Parikh ELSS Tax Saver Fund has been criticised for the somewhat higher expense ratio relative to peers (which reflects the smaller AUM). PPFAS has not yet brought the expense ratio down materially despite recent AUM growth.

The peer ELSS schemes have faced category-wide criticism over the relevance of ELSS in the New Tax Regime era and over the value of the three-year lock-in.

See also

External references

References

  1. PPFAS Mutual Fund factsheet for May 2026.
  2. Axis Mutual Fund factsheet.
  3. Mirae Asset Mutual Fund factsheet.
  4. Quant Mutual Fund factsheet.
  5. AMFI monthly AUM data.
  6. Income-tax Act, 1961, Section 80C.

Reviewed and published by

WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed
Conflicts of interest
WebNotes is independent. No relationship with any broker, registrar or bank named in this article.