A category topper which has consistently beaten its benchmark and category over three, five, seven and ten years, this fund has managed a climb from three- to four-star ratings in the past year.

Though most funds in the ELSS category follow a multi-cap approach, this fund specifically favours mid- and small-cap stocks. The mandate allows a 40-60 per cent allocation to large caps, but in practice, in the last couple of years, the large-cap exposure has hovered at 25 to 45 per cent, with mid caps taking up a 40 per cent plus weight and small caps occupying 15-20 per cent. In the last six months though, the fund has upped its large-cap weights to nearly half its portfolio, probably due to richly priced mid and small caps. The fund sets aside 20-30 per cent of the portfolio for multinational companies with robust fundamentals. It follows a blend of growth and value investing.

Reliance Tax Saver Fund three-, five- and even seven-year returns are ahead of the benchmark by 7-18 percentage points. In 2015, the fund managed a shift to domestic-recovery plays. This timely move has helped it stay ahead of the race in the last one year. Overall, the fund has fared better in tear-away bull markets than in bearish markets.

This is an aggressive fund in the ELSS space, but one that has made timely shifts to keep up with the market's changing preferences.