Tax Saving Mutual Funds: Equity Linked Savings Scheme or ELSS Mutual Fund is considered to be the best investment tool that enables an investor to keep pace with the markets and also saves income tax on one’s investments. As per Section 80C of the Income Tax Act, an investor can claim income tax benefits up to 1.5 lakh in a financial year. Hence, for those who want to save income tax expenses along with huge returns, these tax saving mutual funds can be a good bet. Union Long Term Equity Fund – Direct Plan is a vivid example of this. This tax saving mutual fund plan has been giving great returns to its investors since its inception on 2nd January 2013.
sip calculator
In the past year this ELSS Mutual Fund Scheme has given around 10 per cent annualized return and 5.36 per cent absolute return to its SIP investors. In the last 2 years, Union Long Term Equity Fund – Direct Plan has given an annual return of around 31 per cent while the absolute return over the period given by this scheme is around 34 per cent. In the last 3 years, this tax saving mutual fund scheme has given an annual return of more than 25.50 percent while it has given a return of about 45 percent in this period. In the last 5 years, the annual return given by this mutual fund scheme is around 18.50 per cent while the annual return over this period is 58.50 per cent.
If an investor had invested 10,000 per month in this plan, so it increases to . Happens 1.26 lakh in the last one year, 5.20 lakhs in the last 3 years, 9.47 lakh in the last 5 years and 14.55 lakhs in last 7 years (Data collected by Value Research website).
1 lakh turns into 1.72 lakh in 3 years
This tax saver mutual fund scheme has given good returns even to its one time investors. If an investor had invested 1 lakh in this scheme at the time of inception on 2nd January 2013 and during this period was invested in this ELSS Mutual Fund scheme, its would have been around 1 lakh 3,22,500 today whereas it may have changed in the last 5 years 1.98 lakh today. If the investor had invested 1 lakh in this mutual fund scheme 3 years ago, it would have been 1.72 lakh whereas in the last one year it would have been 1.23 lakh today.
There are also some other ELSS Mutual Fund schemes which have given huge returns to their investors. IDFC Tax Advantage (ELSS) Direct, PGIM Ind ELSS Tax Saver Direct, Quant Tax Plan Direct are some of them.
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