HDFC ELSS Tax Saver Fund :Equity Linked Savings Scheme (ELSS) i.e. ELSS in Equity Mutual Fund is such an option, by investing in which you can also get tax benefits. At present it is an equity fund and like other equity mutual funds, there are chances of getting high returns. This category of mutual funds is also very old and there are schemes which are 28 to 30 years old. If we look at long term SIP or lump sum returns, then HDFC Mutual Fund’s scheme HDFC ELSS Tax Saver Fund is at the forefront in this category.
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At the forefront in giving returns
HDFC ELSS Tax Saver Fund has given 22.39 percent annualized return to SIP investors and 22.87 percent annualized return to lump sum investors in the last 28 years. The returns of this fund are on top in the ELSS category over a period of 28 years. The inception date of this fund is 31 March 1996. The total AUM of the fund is Rs 15934.95 crore as of October 31, 2024. Whereas the expense ratio is 1.71 percent. Its benchmark is NIFTY 500 Total Returns Index.
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lump sum fund performance
1 year return: 47.59%
Value of investment of Rs 1 lakh: Rs 1,47,906
3 year return: 24.80% per annum
Value of investment of Rs 1 lakh: Rs 1,94,495
5 year return: 23.13% per annum
Value of investment of Rs 1 lakh: Rs 2,83,294
10 year return: 14.30% per annum
Value of investment of Rs 1 lakh: Rs 3,81,085
Returns since launch: 22.87% per annum
Value of investment of Rs 1 lakh: Rs 3,55,84,730
SIP performance of the fund
HDFC ELSS Tax Saver Fund’s SIP data is available for 28 years. In these 28 years, those doing SIP have got 22.39 percent annualized returns. In this sense, those who started doing monthly SIP of Rs 5000 in this fund have received Rs 8,53,68,253.
Monthly SIP amount: Rs 5000
Total duration of SIP: 28 years
Annualized Return on SIP: 22.39%
Total investment in 28 years: Rs 16,80,000
Value of SIP in 28 years: Rs 8,53,68,253
Best SIP Return: Top smallcap fund with high rating, made Rs 5 crore from SIP of Rs 10 thousand, left behind the giants in giving returns
Invest money for at least 3 years
This is a better option for those investors whose investment target is at least 3 years or more. It is necessary to invest at least Rs 500 as lump sum and at least Rs 500 as SIP in this fund. However, being an equity scheme, the risk is of very high category. In this, a major part of your investment is invested in equity schemes. There is also some exposure to fixed income, through which your portfolio gets diversified. In this category of mutual funds, tax exemption is available on investment up to Rs 1.50 lakh under Section 80C of the IT Act.
Top stocks in portfolio
ICICI Bank: 10.46%
HDFC Bank: 10.13%
Axis Bank: 8.00%
Bharti Airtel: 5.35%
Cipla: 5.26%
SBI Life Insurance : 4.48%
HCL Technologies: 3.99%
Kotak Mahindra Bank : 3.80%
Maruti Suzuki India : 3.48%
State Bank of India : 2.83%
In which sectors more investment
financial
Technologies
consumer discretionary
healthcare
industrial
Materials
Energy and Utilities
SIP Star: Amazing scheme with 4 star rating, SIP of Rs 10,000 turned into Rs 1 crore, money increased 12 times on one time investment
3 years old is locked in
Most Equity Linked Savings Schemes (ELSS) have a lock-in period of 3 years. If you have deposited any amount in lump sum, then after the lock-in period of 3 years is over, you have the option to withdraw the entire amount along with interest. But, if you have invested through Systematic Investment Plan i.e. SIP then it is not so. Investors doing SIP can withdraw only that amount whose tenure has completed 3 years. This is because a lock-in period of 3 years will be applicable on every SIP instalment.
This can be understood from the example that suppose you had chosen the date of first SIP as 1st January 2021 and 3 years are completing on 1st January 2024. So, 3 years have passed since the first installment which you deposited, but the last installment which was deposited on 1 January 2024, its 3 years will be completed on 1 January 2027. That means you will be able to withdraw the entire amount on January 2, 2027.
(Note: It is not guaranteed whether the past returns in any equity fund will continue or not. This may or may not continue in the future. There are risks in the market, so seek expert advice before investing.)
