Friday, 10 January 2020

Axis Long Term Mutual Fund - A Best ELSS / Tax Saving Mutual Fund for 2020

Posted by MyInvestmentsPub
(Published on 11-Jan-2020)
New Year has come with lots of hopes and promises for the investors. As every one is now searching for tax saving products to reduce their tax burdens, this post will give you some insights about Axis Long Term Mutual fund, which is a best ELSS / Tax Saving Mutual fund. Many of us already investing in PPF, ULIPs, Insurance policies, FDs etc. for tax saving purposes. With so many tax savings options in India, ELSS or Tax Saving Mutual funds stand out the best because they offer benefits beyond tax savings. What are the additional benefits we will get in ELSS / Tax Saving Mutual funds? Why Axis Long Term Mutual fund is a best among other ELSS / Tax Saving Mutual funds?

What is ELSS / Tax Saving Mutual Fund?

An ELSS or Tax Saving Mutual fund is a Diversified Equity Mutual fund with a lock-in period of 3 years. The only difference with other category of Diversified Mutual funds is the tax benefit along with the gains from Stock markets. It means, ELSS or Tax Saving Mutual fund gives double bonanza to the investors by providing tax exemptions and capital appreciations. Investors can invest lump-sum of through SIP approach into any ELSS or Tax Saving Mutual fund.

Comparison of ELSS / PPF / ULIPs:

Why ELSS / Tax Saving Mutual Funds?

  1. ELSS / Tax Saving Mutual Funds provide tax benefits as well as capital appreciations from the stock market.
  2. Investments in ELSS / Tax Saving Mutual Funds having 3-year lock-in period, which is lowest lock-in period compared to any other Tax saving products like PPF, FDs, Insurance products etc.
  3. Investments in ELSS / Tax Saving Mutual Fund provides tax benefits under Section 80C up to  Rs 1.5 Lakhs per annum.
  4. The 5-year track records of ELSS / Tax Saving Mutual Fund showing the highest returns compared to any other tax saving products in India
  5. After 3-year lock-in period, you can continue the investments further with out any lock-in conditions.

Some Good ELSS or Tax Saving Mutual Funds to Invest in 2020

The following are the good ELSS or Tax Saving Mutual Funds that one can consider to Invest in 2020:


Following Factors Considered in Selection of the above Funds:
  1. Funds with 10 years track record
  2. Funds with AUM more than Rs. 500 crores
  3. Funds with big Fund houses
  4. Funds with returns above the category bench-mark performances from the last 10 years
  5. Funds with 4-star or 5-star rating from the last 5 years

Why Axis Long Term Mutual Fund is Best?

Axis Long Term Mutual Fund is one among the top 5 ELSS funds. See the following points about Axis Long Term Mutual fund:
  1. A consistent performer from the last 10 years and is in top 1 or 2 positions from the last 5 years
  2. Belongs to Strong Fund house 
  3. Consistent performance has led to its asset size burgeon from a mere Rs 4 crore at launch to over Rs 17,000 crore.
  4. The fund’s five-year returns are about 5 percentage points higher than its benchmark and 3 percentage points more than its category returns.
  5. Its performance in 2011, showed an ability to contain losses in a falling market.

Conclusion:

All Tax Saving products are its own pros and cons. Your investment strategy should be diversified and your portfolio should consists combination of high, medium and low risk investment products. When compared to other Tax Saving products, ELSS or Tax Saving Mutual funds are giving higher returns along with the tax benefits.

WISH YOU A HAPPY AND PROSPEROUS NEW YEAR - 2020

0 comments:

Post a Comment