Tax Saver Mutual Fund SIP: After entering the new year 2022, earners are looking towards tax saving schemes which can also give them high yield. Those who have a high risk appetite can look into Equity Linked Savings Schemes or ELSS funds as it provides tax saving mutual funds under Section 80C of the Income Tax Act. For such investors, Value Research has rated 4 ELSS funds as 4-star. However, before investing in ELSS Mutual Funds, an investor must note that there is a lock-in period of 3 years, i.e. they have to invest in these tax saving mutual funds for at least 3 years. In case of mutual fund SIPs, there will be a lock-in of 3 years in the SIP every month.
1]DSP Tax Saver Fund – Direct Plan: Value Research claims that the 4-star rated ELSS fund is suitable for medium to long term investors. Value Research advises investors to invest in this tax saver mutual fund in SIP mode. According to data from Value Research, if an investor has made a lump sum investment 1 lakh in this mutual fund, 3 years ago, the absolute value of one’s money would have been 1.90 lakh today. Similarly, if an investor had started 10,000 monthly SIP in this ELSS fund 3 years ago, the absolute value of one’s investment would have changed 5.58 lakh today.
Similarly, outright Invested 1 lakh in this ELSS mutual fund 5 years ago 2.39 lakh while 10,000 would have turned into the absolute value of the monthly SIP started in this tax saver mutual fund scheme 5 years ago 10.19 lakh today.
2]Axis Long Term Equity Fund – Direct Plan: As per data from Value Research, this 4-star rated tax saving mutual fund scheme has changed 1 lakh lump sum 1.86 lakh in last 3 years while monthly SIP 10,000 would have increased to the absolute value of what started 3 years ago 5.41 lakh today.
Similarly, 1 lakh would have turned into a lump sum 2.61 lakh in last 5 years while monthly SIP 10,000 would have increased to the absolute value of what started 5 years ago 10.18 lakh today.
3]UTI Long Term Equity Fund – Direct Plan: According to data from Value Research, if an investor has invested a lump sum 1 lakh in this 4-star rated tax saver mutual fund scheme 3 years ago, its would have turned into 1 lakh 1.86 lakh today while monthly SIP The plan would have increased to the absolute value of 10,000 started 3 years ago 5.65 lakhs today.
Similarly, outright 1 lakh invested in this tax saving scheme 5 years ago 2.31 lakh while monthly SIP 10,000 would have increased to the absolute value of what started 5 years ago 10.18 lakh today.
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