As the fund marked its 20th anniversary, the asset manager said SIP investments since inception have compounded at an annualised return of 12.90%. A one-time investment of ₹1 lakh at launch would have grown to about ₹91.48 lakh by the end of January 2026, based on the scheme’s historical performance.
The ELSS scheme, managed by Sanjay Chawla, Chief Investment Officer – Equity at Baroda BNP Paribas Asset Management (India), currently runs an average assets under management (AUM) of over ₹922 crore. Since inception, the fund has delivered a compound annual growth rate (CAGR) of 11.65%, spanning multiple market cycles including bull runs, corrections, and periods of high volatility.
Investment approach
The fund follows a benchmark-agnostic strategy with a tilt towards large-cap stocks. According to the asset manager, the portfolio avoids “deep cyclical” businesses, global commodity companies, and highly leveraged firms. Instead, it focuses on companies with structural cash flows and predictable earnings, aiming to balance growth with relative stability.
Market analysts note that such an approach can help reduce extreme drawdowns during downturns, though it may also underperform in sharp cyclical rallies.
Tax benefits and lock-in
As an Equity Linked Savings Scheme (ELSS), the fund allows investors to claim tax deductions of up to ₹1.5 lakh per financial year under Section 80C of the Income Tax Act, 1961. The minimum investment amount is ₹500, making it accessible to first-time investors.
However, ELSS investments carry a mandatory three-year lock-in from the date of each investment, which makes them less liquid than open-ended equity funds without tax benefits.
Industry context
ELSS funds have remained a popular tax-saving option for retail investors, especially those seeking equity exposure alongside tax deductions. Over the past two decades, the category has seen significant growth as more salaried individuals adopted SIPs rather than lump-sum investing.
Baroda BNP Paribas Mutual Fund operates across 121 towns and cities in India and services over a million investor folios. In 2024, its asset management company expanded into GIFT City and registered with the International Financial Services Centre Authority (IFSCA) as a Retail Fund Management Entity.
Caution for investors
While past performance of the Baroda BNP Paribas ELSS Tax Saver Fund has been strong, market conditions can change, and equity investments remain subject to risks including volatility, sectoral downturns, and economic slowdowns. Financial advisors recommend aligning ELSS investments with overall portfolio strategy, risk tolerance, and long-term financial goals rather than relying solely on historical returns.
