Quant vs Parag Parikh ELSS: Which fund is winning the 2026 tax-saving race? – Mutual Funds News

Quant ELSS Tax Saver Fund and Parag Parikh ELSS Tax Saver Fund sit in the same ELSS category, follow the same three-year lock-in rule, and are governed by the same tax treatment. For an investor, that is where the similarity largely ends.

Latest disclosures reveal that the two funds are taking distinctly different approaches towards portfolio construction, trading activity and risk control. 

Quant ELSS runs a high-churn, high-concentration equity book that has produced higher five-year returns. 

Parag Parikh ELSS, by contrast, operates with lower turnover, broader diversification and a slightly lower return profile over a 5-year horizon. Once the money is locked in for three years, these structural choices shape outcomes far more than the tax label.

What are ELSS tax-saving funds?

Equity Linked Savings Schemes are equity mutual funds that must invest at least 80% of their assets in equities or equity-related instruments. Each investment carries a mandatory lock-in for three years, counted separately for every lump sum and every SIP instalment.

From a portfolio perspective, ELSS funds function like diversified equity funds. They invest across sectors and market capitalisation, and returns are fully market-linked. There is no capital protection and no guaranteed outcome. The lock-in restricts early exits, which allows fund managers to hold positions for longer without redemption pressure.

Quant ELSS vs Parag Parikh ELSS: 3- and 5-year performance

Long-term returns are the first filter once the lock-in removes flexibility.

Quant ELSS has delivered relatively higher growth over longer periods. On the direct plan, the fund has reported an annualised growth of 13.26% on a compounded basis over 3 years and a 5-year CAGR of 20.89%. These numbers reflect periods of aggressive sector positioning and concentrated bets.

The Parag Parikh ELSS has followed a steadier trajectory. The direct plan shows a 3-year CAGR of 16.28%, and a 5-year CAGR of 18.04%. The annual growth rate since inception is 20.40% on a compounded basis. Returns have been more evenly distributed across years, without extreme spikes.

CAGR comparison

NAV and AUM: Size shapes behaviour

Fund size often dictates how flexible a portfolio can be.

Quant ELSS manages Rs 12,403 crore, making it more than twice the size of Parag Parikh ELSS. The larger asset base supports sizeable sector bets but also requires frequent rebalancing to maintain exposure targets.

Parag Parikh ELSS manages Rs 5,915 crore as of January 2026. The fund has grown steadily since its 2019 launch, allowing it to remain selective and hold liquidity without pressure to deploy capital immediately.

NAV and asset size snapshot

Sharpe ratio, expense ratio and portfolio turnover

Risk-adjusted performance and trading intensity underline how the two funds are run differently.

Quant ELSS reports a Sharpe ratio of 1.01, while Parag Parikh ELSS reports a Sharpe ratio of 1.25. The higher sharpe ratio measures return for each unit of risk taken. The bigger the ratio, the better. 

The trading activity shows an even sharper contrast. Quant ELSS reports a portfolio turnover ratio of 132.14%, meaning the portfolio is effectively reshuffled more than once in a year. Parag Parikh ELSS reports a portfolio turnover ratio of 22%, pointing to significantly longer holding periods.

On costs, Parag Parikh ELSS discloses a direct plan expense ratio of 0.62% and a regular plan expense ratio of 1.72%. Quant ELSS expense ratios are as per the latest factsheet.

Risk and activity comparison

Fund managers and how they run money

Quant ELSS follows a multi-manager structure. The fund is managed by Sandeep Tandon, Ankit Pande, Varun Pattani, Ayusha Kumbhat, Yug Tibrewal and Sanjeev Sharma. Portfolio decisions are driven by internal models that respond to valuation, liquidity and market behaviour, resulting in frequent shifts in sector and stock exposure.

Parag Parikh ELSS has been managed since inception by Rajeev Thakkar and Raunak Onkar, with Raj Mehta, Rukun Tarachandani, Tejas Soman and Aishwarya Dhar added over time. The fund follows a valuation-driven approach with an emphasis on holding businesses for longer periods.

Portfolio breakdown: Allocation, concentration and sectors

The structure of the portfolios shows the clearest divergence.

Quant ELSS remains almost fully invested, with 95.15% of assets in equities and 4.85% in debt and money market instruments. Parag Parikh ELSS maintains 87.22% equity exposure and 12.88% in debt and money market instruments.

Asset allocation

Quant ELSS also runs a concentrated book. The top 10 holdings account for 64.92% of the portfolio. Key holdings include Reliance Industries (9.90%), Larsen & Toubro (9.61%), Samvardhana Motherson (7.27%), Adani Power (7.20%) and Jio Financial Services (7.06%).

Parag Parikh ELSS Tax Saver Fund shows lower concentration. The top five holdings account for 28.82% of assets, led by HDFC Bank (8.00%), Maharashtra Scooters (5.67%), Coal India (5.54%), ITC (4.99%) and ICICI Bank (4.62%).

Sector exposure reinforces this contrast. Quant ELSS is tilted toward financial services (31.20%), power (15.50%), construction (12.90%) and oil and gas (9.90%). Parag Parikh ELSS spreads exposure across financials (32.80%), technology (17.19%), consumer discretionary (17.24%) and consumer staples (9.60%).

Tax treatment: Identical rules, different relevance

Both funds follow standard ELSS tax rules. 

Under the old tax regime, investments qualify for deduction up to Rs 1.5 lakh under Section 80C. On redemption, gains are treated as long-term capital gains, with Rs 1 lakh per year exempt and gains beyond taxed at 10% without indexation.

Under the new tax regime, Section 80C deductions are not available. The three-year lock-in remains, and long-term capital gains taxation is unchanged. With tax treatment identical, portfolio behaviour becomes the deciding factor.

Investor takeaway

The choice between these two funds is less about tax benefits and more about temperament. Once the three-year lock-in begins, investors give up control, so the fund’s internal behaviour matters more than short-term rankings or headlines.

Quant ELSS suits those who are comfortable with rapid changes inside the portfolio and are willing to sit through sharper moves in pursuit of higher long-term growth. Parag Parikh ELSS suits those who value steadiness, lower internal churn and a more measured approach to equity investing, even if that means giving up some upside during strong market phases.

If you are wondering which is a better approach, the decision depends on the investor’s end goal. It is important to understand whether an investor prefers speed and aggression during a period when exit is not possible, or patience and restraint while staying invested for the long haul.

Note: We have relied on data from Morningstar, http://www.financialexpress.com, and the factsheets published by the respective fund houses throughout this article.

Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.