While investing, many do not keep in mind that where they can get tax benefits by investing their money. With March 31 nearing, the tax saving option becomes even more important.
Tax Saver Mutual Funds: In today’s era, most of the employed are giving priority to investing their savings for the future. There are many different options in the market where money can be invested for better returns. Options like stock market, mutual funds, bonds or small savings are prominent. Investors can invest in these by looking at their age or risk profile. However, while investing, many do not keep in mind that they can also benefit from tax on where to invest their money. Now that March 31 is near, the option of tax saving becomes more important. Experts say that there are many tax saving schemes in the market, but ELSS can be a better option.
Why Tax Saver Mutual Fund is Better
AK Nigam, Director, BPN Fincap says that smart investors should consider several things before investing. There is also a tax saving in them. For this, Equity Linked Savings Scheme ie ELSS of Mutual Fund is a better option. ELSS has the potential for higher returns as compared to small savings. At the same time, by not investing money directly in equity, the risk is also reduced. In this, the facility of Systematic Investment Plan ie SIP is also available. Another advantage of ELSS is that most of the schemes have a lock-in period of 3 years. Whereas in NSC or Tax Saver FD 5 years. At the same time, even after 3 years, you can continue your investment in it.
Quant Tax Plan
Quant Tax Plan has given returns at the rate of 19% CAGR in 10 years. During this, the investment of Rs 1 lakh here has increased to Rs 5.73 lakh. Whereas in 10 years the value of monthly SIP of Rs 5000 has increased to Rs 22 lakh. The fund was launched on 1st April 2000 and since then its returns have been 15.4% CAGR. Talking about 5 years, there have been more than 3 lakh rupees of 1 lakh, while the value of 5000 rupees monthly SIP has become 6.7 lakh rupees.
A lump sum investment of at least Rs 500 can be made in this fund, while SIP can be started with a minimum of Rs 500. The total assets of the fund as on 31 January 2022 was Rs 789 crore. Whereas the expense ratio was 2.62 percent as of 31 December 2021.
Axis Long Term Equity Fund
Axis Long Term Equity Fund has given returns of 18.77% CAGR in 10 years. During this, the investment of Rs 1 lakh here has increased to Rs 5.59 lakh. Whereas in 10 years, the value of a monthly SIP of Rs 5000 has increased to Rs 15 lakh. The fund was launched on 29th December 2009 and since then its returns have been 17.5% CAGR. Talking about 5 years, there has been more than 2 lakh rupees of 1 lakh, while the value of 5000 rupees monthly SIP has become 4.6 lakh rupees.
A lump sum investment of at least Rs 500 can be made in this fund, while SIP can be started with a minimum of Rs 500. The total assets of the fund as on 31 January 2022 was Rs 32,136 crore. Whereas the expense ratio was 1.64 percent till 31 December 2021.
DSP Tax Saver Fund
Investors in DSP Tax Saver Fund have got 18% CAGR return in 10 years. In 10 years, this fund has increased from Rs 1 lakh to 5.24 lakh. Whereas during this period, those who did SIP of Rs 5000 monthly, their money increased to Rs 15.5 lakh. This fund was launched on 5th January 2007 and since then its returns have been 15% CAGR. Talking about 5 years, if the value of Rs 1 lakh exceeds Rs 2 lakh, then the value of a monthly SIP of Rs 5000 becomes Rs 4.5 lakh.
A lump sum investment of at least Rs 500 can be made in this fund, while SIP can be started with a minimum of Rs 500. The total assets of the fund as on 31 January 2022 was Rs 9,856 crore. Whereas the expense ratio was 1.78 percent as of 31 December 2021.
IDFC Tax Advantage (ELSS) Fund
Investors in IDFC Tax Advantage (ELSS) Fund have got 18% CAGR returns in 10 years. In 10 years, this fund increased from Rs 1 lakh to Rs 5.22 lakh. Whereas during this period, those who did SIP of Rs 5000 monthly, their money increased to Rs 16 lakh. This fund was launched on 26th December 2008 and since then its returns have been 19% CAGR. Talking about 5 years, if the value of Rs 1 lakh exceeds 2.30 lakh, then the value of a monthly SIP of Rs 5000 becomes Rs 5.6 lakh.
A lump sum investment of at least Rs 500 can be made in this fund, while SIP can be started with a minimum of Rs 1000. The total assets of the fund as on 31 January 2022 was Rs 3,583 crore. Whereas the expense ratio was 1.96 percent as of 31 December 2021. (source: value research)
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