Quant Mutual Fund: Monthly SIP of Rs 2800 could have made you Crorepati: Can the dream of becoming a millionaire be fulfilled with a small investment of just Rs 2800? The past record of a tax saving scheme of Quant Mutual Fund shows that this is definitely possible. The name of this 24-year-old scheme is Quant ELSS Tax Saver Fund and it has consistently given great returns to its investors since its launch. If an investor would have started a monthly SIP of Rs 2800 in this scheme at the time of launch, then his current fund value would have been more than Rs 1 crore. The good thing is that due to being a tax saver fund, tax exemption is also available on the investment made in it.
1 crore deposited from SIP of Rs 2800
You can see here the details of how this very old scheme of Quant Mutual Fund has transformed a small regular investment of Rs 2800 into a fund of Rs 1 crore:
Scheme Name: Quant ELSS Tax Saver Fund (Regular Plan)
- Monthly SIP amount: Rs 2800
- Investment period: 24 years
- Total amount invested in 24 years: Rs 8,06,400
- Current fund value of investment: Rs 1,00,29,163
- Annualized return on SIP investment in 24 years: 17.62%
- Asset Under Management (AUM): Rs 10,528 crore
Also read: Tata Mutual Fund’s 19 year old scheme made him ‘rich’, got 1.04 crore from monthly SIP of Rs 8500
What was the return of SIP in different periods
You can see here how much annualized return has been received in different periods by investing through SIP in the regular plan of Quant ELSS Tax Saver Fund. It is clear from this that this scheme has consistently given excellent positive returns to its investors.
Also read: SBI Mutual Fund SIP: Earned Rs 1.40 crore with monthly SIP of Rs 10,000, this scheme of SBI fund gave 6 times return
SIP Returns of Quant ELSS Tax Saver Fund (Regular Plan)
Annualized return on SIP in 20 years: 17.35%
Annualized return on SIP in 15 years: 21.26%
Annualized return on SIP in 10 years: 25.88%
Annualized return on SIP in 5 years: 35.64%
Also read: NFO: HDFC Mutual Fund launches new multicap index fund, what is its specialty
Tax savings are a bonus on investment
One of the features of Quant ELSS Tax Saver Fund is that being a tax saving scheme, it provides income tax exemption under section 80C on investment up to Rs 1.5 lakh annually. Not only this, if the investment made in this scheme is held for 3 years, then no tax will have to be paid on profit up to Rs 1.25 lakh during a financial year. If the profit of one year is more than Rs 1.25 lakh, then under the new rules announced in the budget presented on 23 July 2024, Long Term Capital Gains (LTCG) tax will have to be paid at the rate of 12.5 percent. Still, it is a profitable deal for investors falling in the higher tax slab. Those who hold for less than 3 years will have to pay Short Term Capital Gains (STCG) tax at the rate of 20 percent on the profit made from it.
Invest with caution
Quant ELSS Tax Saver Fund is an equity scheme through which at least 80 percent of the investment is made in shares. Obviously, the market risk associated with the investment made in it is quite high. Therefore, make the investment decision keeping in mind your risk profile. The full benefit of investing in equity mutual funds is achieved only when regular investment is made for a long period. The past performance of a mutual fund cannot be considered a guarantee of similar returns in the future.
(Disclaimer: The purpose of this article is only to provide information, not to give investment advice. Market fluctuations have a direct impact on the returns of mutual funds. Therefore, take any investment decision only with the advice of your investment advisor.)