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This ELSS Fund From LIC, Rated 3 Star by CRISIL, Has Given Steady Returns On SIP

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Tax saving is a vital part of our financial career; handling taxes well is an art, and if you can master it, you can solve most of your financial problems. When it comes to achieving financial goals, mutual funds have become the preferred option for investors. ELSS (Equity-Linked Saving Scheme) is one MF that offers tax benefits. ELSS provides investors with the benefit of both capital appreciation and tax savings under Section 80C of the Income Tax Act of 1961.

 

ELSS funds are classified as open-ended equity funds, which indicates that more than 65% of the money is invested in stocks. There are two types of ELSS funds: growth and dividend. A tax advantage is also available as it is an ELSS fund. Here, we have given a detailed analysis of the LIC MF Tax Plan that offered steady returns over the years:

LIC MF Tax Plan - Direct Plan-Growth
 

LIC MF Tax Plan - Direct Plan-Growth

NAVFund SizeExpense Ratio
₹111.12 ₹ 407.53 Cr

1.30%

NAV as on 21 January 2022

The 1-year absolute and annualized returns on Rs 1000 SIP for Fund are 13.88% and 26.55%. It has had an average yearly return of 268.14% since its inception. The fund is invested in Indian equities to the tune of 97.63 percent, while the rest the other securities. The fund is aimed to deliver capital development as well as tax rebates and relief to investors via sensible stock market investments. Investments of up to Rs 1.5 lakh in qualified securities are tax-free under Section 80C. However, your investments can't be out before three years since your investments it's ELSS funds. If invested for five years or more, the expected profits easily outperform inflation, as well as returns from fixed-income choices. 

Investors who are wanting to invest for at least three years, and are searching for extra benefits such as income tax savings in addition to greater expected profits can invest in the fund. At the same time, these investors should be prepared for moderate losses in their investments as well as a three-year lock-in period. The fund is ranked 3 by the CRISIL. The fund has average performance among peers. However, the risk on the investment is high. The top holding of the fund as on 31 December 2021 are Infosys Ltd., ICICI Bank Ltd., HDFC Bank Ltd., TCS, Aveneue Supermarts Ltd., and others.

Returns Over % Years

Returns Over % Years

The Fund has offered steady growth over the years and since its inception on investment of Rs 10000, these returns rates are as follows:

Period Invested forAbsolute ReturnsAnnualised ReturnsCategory Avg
1 Year25.72%25.72%36.44%
2 Year40.70%18.59%28.08%
3 Year64.12%17.94%22.23%
5 Year115.72%16.60%17.48%
SIP Performance

SIP Performance

The Fund has offered a steady growth over the years on Rs 1000 SIP, these return rates are as follows: 

Period Invested forAbsolute ReturnsAnnualised Returns
1 Year13.88%26.55%
2 Year38.60%34.84%
3 Year44.55%25.40%
5 Year57.02%18.07%

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, Terms and Conditions carefully before investing. The above-mentioned information is purely informational and carried forward from MoneyControl. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.

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