Mutual Fund SIP in Quant ELSS Tax Saver Fund: The growth option of Quant ELSS Tax Saver Fund (Growth) has given tremendous returns to its investors in the long term. If someone has invested Rs 2200 every month through Systematic Investment Plan (SIP) since the beginning in this equity linked savings scheme launched 24 years ago, then today their fund value would have been more than Rs 1 crore. The special thing is that being a tax saver fund, you can not only create wealth by investing in Quant ELSS Tax Saver Fund, but can also avail the benefit of tax savings. So it is like icing on the cake!
How a small investment made a millionaire
Below is the calculation of how investing in Quant ELSS Tax Saver Fund through a combination of lump sum and SIP can make you a crorepati:
- Lumpsum investment: Rs 50,000
- Monthly SIP: Rs 2200
- Annualized return on SIP: 17.84%
- Investment period: 24 years
- Total investment in 24 years: Rs 6,83,600
- Fund Value after 24 years: Rs 1,01,30,809 (Rs 1.01 crore)
Also read: Mutual Fund Returns: Flexi Cap, Multi Cap or ELSS? Who is ahead in giving returns, what is the right option for you
This calculation clearly shows how regular investment of small amounts over a long period of time in the right scheme can make you a millionaire. The objective of Quant ELSS Tax Saver Fund is to increase capital by investing primarily in equity shares that have growth potential. The asset under management (AUM) of this scheme is Rs 11,065 crore, while the minimum investment amount and minimum SIP amount in it is just Rs 500.
Also read: 5 lakhs were deposited in this retirement fund of HDFC by SIP of Rs 2600, only 50 thousand had to be deposited at once
Quant ELSS Tax Saver Fund Portfolio
Equity accounts for 95.02% of the portfolio of Quant ELSS Tax Saver Fund, while 4.98% of the fund is invested in cash and cash-like assets. The scheme’s key holdings include shares of these companies:
- Adani Power
- Reliance Industries
- HDFC Bank
- Samvardhana Motherson
- Jio Financial
- Life Insurance Corporation (LIC)
- Aurobindo Pharma
- Britannia Industries
- ITC
Also read: Mutual Fund: Top 6 multi asset funds gave up to 32% return on SIP in 5 years, should you invest?
ELSSWhat is?
Equity Linked Saving Scheme or ELSS means an equity based mutual fund in which investment is tax exempted up to Rs 1.5 lakh per year under section 80C of Income Tax Act 1961. Investments made in this scheme have a lock-in period of 3 years. After the lock-in ends, investors can redeem or switch their units.
Also read: Mutual Fund Return: This is how 50 thousand rupees became 5 lakhs! Nippon India’s ETF gave bumper return in 5 years
For whom is this scheme right
Quant ELSS Tax Saver Fund can be a better option for those investors who want to make long term investments for wealth creation as well as save taxes. Investors should also keep in mind that being an equity fund, the past returns of this scheme cannot be considered as a guarantee of similar performance in the future.
(Disclaimer: Investments made in mutual funds are directly affected by the fluctuations in the stock market. Our aim is not to advise investing in any fund, but only to provide information. Take any investment decision only after consulting your investment advisor.)
