Quant vs Parag Parikh ELSS Fund: Comparing 3-Year and 5-Year Returns

Quant ELSS and Parag Parikh ELSS are both equity-linked savings schemes (ELSS). They follow the same 3-year lock-in and tax rules, but their investment approach and risk profile are very different. Once money is locked in, the fund’s strategy matters more than the tax tag.

What are ELSS Tax-Saving Funds?

ELSS funds invest at least 80% of their money in equities. Each investment has a mandatory three-year lock-in. Returns depend fully on market performance, with no capital protection or guaranteed returns. The lock-in allows fund managers to stay invested without pressure from redemptions.

Performance: 3-Year and 5-Year Returns

Over longer periods, Quant ELSS has delivered higher returns, driven by aggressive and concentrated bets. Its direct plan shows a 3-year CAGR of 13.26% and a 5-year CAGR of 20.89%.

Parag Parikh ELSS has taken a steadier route. Its direct plan has posted a 16.28% CAGR over 3 years and 18.04% over 5 years, with more consistent year-on-year performance.

Fund Size and NAV

Quant ELSS manages a larger asset base of about ₹12,403 crore, which supports big sector calls but also leads to frequent rebalancing.

Parag Parikh ELSS manages around ₹5,915 crore, allowing it to stay selective and patient while deploying capital.

Risk, Costs And Trading Activity

Quant ELSS has a Sharpe ratio of 1.01, while Parag Parikh ELSS reports a higher 1.25, indicating better risk-adjusted returns.

The biggest difference lies in churn. Quant ELSS has a very high portfolio turnover of 132%, meaning frequent buying and selling. Parag Parikh ELSS has a much lower turnover of 22%, showing longer holding periods.

Expense ratios are similar, with Parag Parikh ELSS slightly cheaper on the direct plan.

Portfolio Structure And Sector Exposure

Quant ELSS is almost fully invested in equities and runs a concentrated portfolio, with nearly 65% of assets in its top 10 stocks. It is heavily tilted towards financials, power, construction and oil & gas.

Parag Parikh ELSS keeps a part of its assets in debt and money market instruments and has lower concentration. Its exposure is spread across financials, technology, consumer discretionary and consumer staples.

Read More: Best Monopoly Stocks in January 2026: HAL, CDSL, IRCTC and More Based on 5-yr CAGR Basis.

Tax Rules: No Difference

Both funds follow identical tax treatment. Under the old tax regime, investments qualify for Section 80C benefits up to ₹1.5 lakh. Capital gains after three years are taxed as long-term capital gains, with ₹1 lakh exempt each year.

Conclusion

Choosing between Quant ELSS and Parag Parikh ELSS depends on investor temperament. Quant ELSS suits investors comfortable with higher risk, sharp portfolio changes and potential volatility for higher returns. Parag Parikh ELSS is better for those who prefer stability, lower churn and a disciplined, long-term approach. Once money is locked in for three years, understanding how a fund behaves internally is more important than chasing headline returns.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.