How I selected Top 5 Best ELSS Tax Saving Mutual Funds 2018-2019, Top 5 Best ELSS Tax Saving Mutual Funds 2018-2019

I will first screen the top 10 funds based on their returns to benchmark since inception. The funds who consistently beaten the benchmark are listed in that 10. Once I have the list in my hand, then I select the funds based on Risk-Return Analyzer.
Many simply select the funds based on eye-catching returns. However, at what cost the fund is giving you a better return? To what extent it protects my investment during a downturn is what differentiate from good fund to bad fund.
Again, I am not saying that these 5 funds alone be considered as “Top 5 Best ELSS Tax Saving Mutual Funds 2018”. There may be fewer other funds, which are good to compete with these funds. However, I may be biased towards few Mutual Fund Companies (purely on their size and how long they are in MF business in India). Below are the metrics I used to arrive at finally selecting the funds.
If the fund cleared all these tests and given me around a minimum of 80% score since inception, will be added to my list.

1. Beta-Volatility measure and tell how much the fund changes for a given change in the Index. Lower the beta, lower the volatility. Hence, your fund must have lower beta.
2. Standard deviation-It tells us how for a given set of returns, how much do fund returns deviate from the average. Lower the standard deviation, lower the volatility. Hence, your fund must have lower beta.
3. Alpha-It is the risk-adjusted measure. By taking risks, how much the fund manager generated the return over the benchmark. Higher the alpha, higher the outperformance of the fund.
4. Sharpe Ratio-It is the risk-adjusted measure. Higher the Sharpe ratio, better is the performance.
5. Sortino Ratio-It is the risk-adjusted measure. Higher the Sortino ratio, better is the performance.
6. Treynor Ratio-It is also be known as reward ratio. Higher the Treynor ratio, better is the performance.
7. Information Ratio-This is calculated by average excess return obtained compared to a benchmark and divides it by the standard deviation of excess returns. Higher the information ratio, higher the consistency in beating the benchmark.
8. Omega Ratio- It is a risk-return performance measure of an investment asset.
9. Downside deviation-This is also be called as BAD RISK.
10. Upside potential-This is exactly the opposite of Downside deviation.
11. R-squared- It is a measure of how correlated the fund’s NAV movement is with its index.
12. SIP Returns-For how many times the fund’s returns are above the index when we invest in SIP.
13. Lump Sum Returns-For how many times the fund’s returns are above the index when we invest in a lump sum.

Below are my Top 5 Best ELSS Tax Saving Mutual Funds 2018

Top 5 Best ELSS Tax Saving Mutual Funds 2018-2019

Below are the 10 ELSS Tax Saving Mutual Funds under my radar. Based on these I shortlisted Top 5 Best ELSS Tax Saving Mutual Funds 2018-2019.

1. Axis Long Term Equity Fund (Age 7 Yrs)
2. Birla Sun Life Tax Plan (Age 18 Yrs)
3. Birla Sun Life Tax Relief 96 (Age 21 Yrs)
4. DSPBR Tax Saver Fund (Age 10 Yrs)
5. Franklin India Taxshield (Age 18 Yrs)