One fund, two benefits – Saving tax & Growth potential
It is that time of the year when many of us struggle to make investments into products that help save tax. For those of us who are yet to do it, this may be the final leg of the Jan-Feb-Mar (JFM) period that one could utilize to save tax.
If you too struggle with last-minute tax saving activities, year after year, then it’s worth exploring a simple and an easy way to bring discipline and regularity to your tax-saving plans. Consider Systematic Investment Plan (SIP) into Equity Linked Saving Scheme (ELSS) schemes!
SIP into ELSS ensures that while you save on tax, you get to benefit from the growth potential offered by equity investing. Investments in the ELSS category qualify for a deduction of upto INR 1.5 lakh from one’s income under section 80C of the Income tax Act, 1961. You can start with a monthly SIP of as low as INR 500 to ensure regularity of investment and avoid the last minute tax hassle.
Apart from saving you tax, ELSS category offers an investor the following benefits:
- One of the shortest lock-in period of 3-year
- Participation in equity markets
- Professional management of your investments with in a diversified portfolio
One must remember that ELSS mutual funds invest in equity markets. While they have the potential to generate higher returns than the traditionally available tax saving options, these are market linked and hence could be volatile especially over a short period of time. Therefore one must have the necessary risk appetite to invest in equity market related schemes.
IDFC Mutual Fund offers IDFC Tax Advantage (ELSS) Fund in the ELSS category. This is an open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit under section 80C. The scheme invests majority of its assets in equity markets.
- The fund follows a multi-cap oriented approach.
- It follows a growth-at-a-reasonable-price philosophy.
- The fund invests in companies based on a deep understanding of the industry-growth potential and interaction with managements
IDFC Tax Advantage (ELSS) Fund doesn’t just save tax but helps grow your money. Further given the recent volatility and sharp correction witnessed by the equity markets, investors could consider investing in ELSS Schemes with an aim to benefit from long term growth potential of equity markets!
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
The Disclosures of opinions/in house views/strategy incorporated herein is provided solely to enhance the transparency about the investment strategy / theme of the Scheme and should not be treated as endorsement of the views / opinions or as an investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document has been prepared on the basis of information, which is already available in publicly accessible media or developed through analysis of IDFC Mutual Fund. The information/ views / opinions provided is for informative purpose only and may have ceased to be current by the time it may reach the recipient, which should be taken into account before interpreting this document. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision and the security may or may not continue to form part of the scheme’s portfolio in future. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. The decision of the Investment Manager may not always be profitable; as such decisions are based on the prevailing market conditions and the understanding of the Investment Manager. Actual market movements may vary from the anticipated trends. This information is subject to change without any prior notice. The Company reserves the right to make modifications and alterations to this statement as may be required from time to time. Neither IDFC Mutual Fund / IDFC AMC Trustee Co. Ltd./ IDFC Asset Management Co. Ltd nor IDFC, its Directors or representatives shall be liable for any damages whether direct or indirect, incidental, punitive special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information.