INVESTMENTS
ELSS MUTUAL FUND
What is ELSS Mutual Fund?
ELSS funds are equity funds that allow you to save tax while you invest for your long term goals. Investment in these funds can are eligible for Tax deduction under Section 80c. These dual benefits mean anyone looking to invest up to Rs. 9,000 per month should only invest in this category
ELSS Funds are diversified equity funds. These funds primarily invest in stocks of listed companies in a specific proportion according to the investment objective of the fund. The stocks are chosen from across market capitalization (Large Caps, Mid Caps, Small Caps) and industry sectors. These funds aim to maximize capital appreciation over the long run. The fund manager picks stocks after conducting in-depth market research to deliver optimal risk-adjusted portfolio returns. Learn more about tax saver elss funds to save more tax.
Who Should Invest in ELSS Mutual Fund?
One of the fixed income products that comes with being a salaried employee is the Employee Provident Fund (EPF). ELSS is the greatest choice if one want to balance risk and return in their investing portfolio . Apart from the potential for exceptional profits, section 80C allows for tax reduction on investments made in ELSS. Although there are tax benefits associated with alternative products, such as Unit Linked Insurance Plans (ULIPs), their potential for return is lower and their lock-in period is longer. For example, PPF has a 15-year lock-in term, whereas ULIPs have a five-year lock-in. The lowest lock-in duration, just three years, is seen in ELSS Funds.
If you are a new investor, ELSS is an ideal choice, since in addition to tax benefits you get a flavor of equity investing and mutual funds. Equity investing requires patience and discipline of staying invested for the long term. Investors often lack this discipline and pull out of equity investments due to short-term fluctuations in the fund?s performance caused by equity market movements. The lock-in ensures that the investor stays invested for the long term. Like all equity investments, you can invest in ELSS through SIP, which ensures regular investing. SIP helps in rupee cost averaging. Through SIP you accumulate more units when the market is in red and this benefits you when the markets turn favorable.
Taxation on ELSS
Capital gains from ELSS get the same treatment in Income Tax Calculation as the rest of the Equity Instruments. Short-term capital gains (STCG) attract a tax of 15%, while Long Term Capital gains (LTCG) are only taxable if the gains exceed
Top Schemes of ELSS Mutual Funds
Quant Tax Plan Direct-Growth is a ELSS mutual fund scheme from Quant Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. Quant Tax Plan Direct-Growth has ₹5,615 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 0.76%, which is less than what most other Elss funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
TOP STOCK HOLDINGS
ALLOCATION BY MARKET CAPITALIZATION
Bank of India Tax Advantage Direct-Growth is a ELSS mutual fund scheme from Bank Of India Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. Bank of India Tax Advantage Direct-Growth has ₹860 Crores worth of assets under management (AUM) as on 30/09/2023 and is small fund of its category. The fund has an expense ratio of 1.28%, which is higher than what most other Elss funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
TOP STOCK HOLDINGS
ALLOCATION BY MARKET CAPITALIZATION
Bandhan ELSS Tax Saver Fund Direct Plan-Growth is a ELSS mutual fund scheme from Bandhan Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. Bandhan ELSS Tax Saver Fund Direct Plan-Growth has ₹5,040 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 0.63%, which is less than what most other Elss funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
TOP STOCK HOLDINGS
ALLOCATION BY MARKET CAPITALIZATION
SBI Long Term Equity Fund Direct Plan-Growth is a ELSS mutual fund scheme from Sbi Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. SBI Long Term Equity Fund Direct Plan-Growth has ₹15,774 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 1.0%, which is close to what most other Elss funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
TOP STOCK HOLDINGS
ALLOCATION BY MARKET CAPITALIZATION
HDFC ELSS Tax Saver Direct Plan-Growth is a ELSS mutual fund scheme from Hdfc Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. HDFC ELSS Tax Saver Direct Plan-Growth has ₹12,197 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 1.15%, which is higher than what most other Elss funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
TOP STOCK HOLDINGS
ALLOCATION BY MARKET CAPITALIZATION
Franklin India Taxshield Direct-Growth is a ELSS mutual fund scheme from Franklin Templeton Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. Franklin India Taxshield Direct-Growth has ₹5,224 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 1.07%, which is close to what most other Elss funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
TOP STOCK HOLDINGS
ALLOCATION BY MARKET CAPITALIZATION
DSP ELSS Tax Saver Direct Plan-Growth is a ELSS mutual fund scheme from Dsp Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. DSP ELSS Tax Saver Direct Plan-Growth has ₹11,693 Crores worth of assets under management (AUM) as on 30/09/2023 and is medium-sized fund of its category. The fund has an expense ratio of 0.78%, which is less than what most other Elss funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
TOP STOCK HOLDINGS
ALLOCATION BY MARKET CAPITALIZATION
JM ELSS Tax Saver Fund Direct Plan-Growth is a ELSS mutual fund scheme from Jm Financial Mutual Fund. This fund has been in existence for 10 yrs 11 m, having been launched on 01/01/2013. JM ELSS Tax Saver Fund Direct Plan-Growth has ₹100 Crores worth of assets under management (AUM) as on 30/09/2023 and is small fund of its category. The fund has an expense ratio of 1.42%, which is higher than what most other Elss funds charge.
HOLDING ANALYSIS
EQUITY SECTOR ALLOCATION
TOP STOCK HOLDINGS
ALLOCATION BY MARKET CAPITALIZATION
Related Articles: