2024-07-20 04:11:50
New Delhi: In the last 25 years, three ELSS or tax saving mutual funds have turned a lump sum investment of Rs 1.5 lakh into Rs 1 crore. There are about six ELSS or tax saving funds that have completed 25 years. An analysis by ETMutualfunds reveals this. ELSS or tax saving schemes help investors save tax under Section 80C of the Income Tax Act. One can claim a maximum deduction of Rs 1.5 lakh in a financial year by investing in them. ELSS funds invest in shares. There is a risk associated with investing in shares. These schemes have a mandatory lock-in period of three years. Other investment options under Section 80C have a longer holding period. Let us know about the returns of tax saving schemes here. HDFC ELSS Tax Saver converted a lump sum investment of Rs 1.5 lakh into Rs 2.53 crore in the last 25 years. Its CAGR (Compound Annual Growth Rate) during this period was 22.77 percent. At the same time, Franklin India ELSS Tax Saver Fund converted a lump sum investment into Rs 1.89 crore in the same period. The scheme gave a CAGR of 21.34 percent in the same period.
SBI Long Term Equity Fund gave 18.76% return
The oldest ELSS or tax-saving fund SBI Long Term Equity Fund turned a lump sum investment into Rs 1.10 crore in the same time frame. The scheme delivered a CAGR of 18.76% in the same period.
Other ELSS or tax saving funds have grown the lump sum investment from Rs 18.11 lakh to Rs 80.98 lakh in the last 25 years. These ELSS funds gave a CAGR between 10.47% – 17.29% in this time period.
Investors must pay attention to this
This analysis was done only to find out which ELSS funds turned a lump sum investment of Rs 1.5 lakh into Rs 1 crore in the last 25 years. Investment or redemption decisions should not be taken on the basis of this analysis. One should always consider risk appetite, investment period and goals before making investment decisions.
Disclaimer: The suggestions given in this analysis are those of the individual analysts or broking companies, not of NBT. We advise investors to consult certified experts before making any investment decision as stock market conditions can change rapidly.