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Top 5 ELSS Mutual Funds – In Brief

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Top 5 ELSS Mutual Funds

Equity Linked Saving Scheme OR ELSS – An Introduction 

Equity Linked Saving Scheme is a diversified equity mutual fund scheme with two distinguish features- investment amount in them qualifies for tax benefits under section 80C of the Income Tax Act, 1961 up to a limit of INR 1.5 lakh a year and secondly, the amount invested has a lowest lock-in-period of 3 years. It mainly invests a large chunk of your money in equity related securities. The fund manager looks for securities of companies which have a strong growth potential and a sound business model. 

Features Not to Miss of ELSS Mutual Funds 

  • A minimum of 80% of the total assets to be invested in equity & equity-related instruments. 
  • No such maximum tenure of investment, but there is a lock-in-period of 3 years. 
  • The fund invests in equity in a varied manner across different themes, sectors, and market capitalizations. 
  • Tax get exempted on the invested amount under the Section 80C of the Income-Tax Act. 
  • Income is treated as Long Term Capital Gains & taxed as per the tax rules. 

Things to Consider for ELSS Mutual Funds 

  • Tax Efficient: If tax-saving mutual funds are on your mind, then you should consider ELSS investments. Apart from serving as an efficient fund shield, it also brings in tax–benefits. Claiming tax–benefits in ELSS funds is not a tedious job. Under section 80C of the Income Tax Act, an individual can claim a tax–deduction of up-to 1,50,000 INR per year.  
  • Wealth Creation for Long-Term: ELSS schemes come with a 3-year lock-in period wherein the investor cannot access the funds, thus securing their savings. To enjoy better returns, it is recommended to remain invested in ELSS tax saving funds for a period of 5 years or longer. Rest, the decision is yours!   
  • Early-Benefits: If you’ve just started enjoying a pay–check every month, it’s natural to feel that you can put off your long-term financial decisions such as investments for later part. Starting prompt means having enough time to gather wealth. For instance, if you start investing early, your funds will have a longer–period to grow.  
  • Minimum Investment Requirement: The minimum required amount for the investment is low and starts with INR 500. This makes ELSS a sound investment option, especially for those who need to start with a low value and better returns.   

Furthermore, you can read more about ELSS here: https://www.gulaq.com/top-10-elss-funds-to-invest/ 

Top 5 ELSS Mutual Funds as per Gulaq Methodology 

  • Axis Long Term Equity FundIt is an equity mutual fund scheme that was launched by Axis mutual fund Later on, it was introduced on 1st Jan 2013 to its investors. Currently, the fund is managed by Jinesh Gopani. Talking about AUM, it is of INR 21997 Cr, and, the latest NAV is of INR 55.85 (dated as of 17th Feb 2020). The fund growth is rated moderately high risk. Also, the minimum SIP in Axis Long Term Equity Fund is INR 500.  
  • Mirae Asset Tax Saver FundIt is an equity mutual fund scheme that was launched by Mirae Asset mutual fund. Later on, it was introduced on 28th Dec 2015 to its investors. Currently, the fund is managed by Neelesh Surana. Talking about AUM, it is of INR 3293 Cr, and, the latesh NAV is of INR 20.20 (dated as of 17th Feb 2020). The fund growth is rated moderately high risk. Also, the minimum SIP investment for Mirae Asset Tax Saver is INR 500.  
  • Canara Robeco Equity Tax Saver FundIt is an Equity mutual fund scheme that was launched by Canara Robeco mutual fund. Later on, it was introduced on 2nd Jan 2013 to its investors. Currently, the fund is managed by Yogesh Patil, and Ravi Gopalakrishnan. Talking about AUM, it is of INR 1033 Cr, and, the latest NAV is of INR 76.17 (dated as of 17th Feb 2020). The fund growth is rated moderately high risk. Also, the minimum SIP investment for Canara Robeco Equity Tax Saver is INR 500. 
  • BOI AXA Tax Advantage FundIt is an Equity mutual fund scheme that was launched by BOI AXA mutual fund. Later on, it was introduced on 25th Feb 2009 to its investors. Currently, the fund is managed by Saurabh Kataria. Talking about AUM, it is of INR 279, and, the latest NAV is of INR 13.33 (dated as of 17th Feb 2020).  The fund growth is rated moderately high risk. Also, the minimum SIP investment is INR 500. 
  • Invesco India Tax PlanIt is an Equity mutual fund scheme that was launched by Invesco mutual fund. Later on, it was introduced on 1st Jan2013 to its investors. Currently, the fund is managed by Dhimant Kothari, and Amit Ganatra. Talking about AUM, it is of INR 1026, and, the latest NAV is of INR 62.05 (dated as of 17th Feb 2020). The fund growth is rated moderately high risk. Also, the minimum SIP investment is INR 500.  

 

Looking to invest? Hop on to gulaq.com and start investing in direct mutual funds. Furthermore, you can also get in touch: [email protected]   or Whatsapp +91-9818894632

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*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

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