Steal the New Opportunity of Quant ELSS Fund for your Next Tax-Saving Plan
Whenever there is a sale of course we know about it, so why do we miss such a great opportunity that gives us tax benefits on investment? Oh sorry, I forgot you haven’t thought about investing right? It’s fine, but what if after seeing the special offers you might think about it or you will invest. Who knows it’s just you. So shall we start?
In this article, we will delve into the Quant ELSS Tax Saver Fund, is this fund is worth your money, how much you can save from ELSS, and how the tax saving calculator works, we will discuss what sets, ELSS apart from other investment options.
Is Quant ELSS Tax Saving Fund Worth Your Money?
Quant Asset Management Company was founded in 1996, Quant Mutual Fund is among India’s pioneering mutual funds, boasting over 22 years of experience in asset management. Our proactive approach aims to generate alpha while safeguarding investor interests. We employ active, absolute, and unconstrained strategies, backed by extensive research, to navigate evolving macroeconomic conditions effectively.
Now comes, its tax saving fund, Quant ELSS Tax Saver Fund introduced to investors on April 1st,2000, which has stably grown its asset under management (AUM) to Rs.7770 Crores as of February 29th,2024.
As an Equity Linked Savings Scheme (ELSS), it offers investors the dual benefit of tax savings under Section 80C of the Income Tax Act along with the potential for long-term wealth creation through equity investments.
Managed by Quant Mutual Fund, this fund employs a Diversified investment approach across various sectors and market capitalizations to potentially deliver attractive returns over the term.
With a track record spanning over two decades, Quant ELSS established itself as a reliable option for investors seeking tax-efficient avenues for wealth accumulation in the Indian mutual fund industry.
How Much Amount You Can Save from ELSS Fund?
ELSS, or Equity Linked Savings Scheme, is a type of mutual fund that invests primarily in equity and equity-related securities. It offers tax benefits under Section 80C of the Income Tax Act which allows investors to claim a deduction of up to Rs.1.5 lakh from their taxable income in a financial year. ELSS funds have a lock-in period of three years and have a lock-in period of typically three years.
Let’s understand this with an example-
You can save up to Rs.15000 from ELSS funds if you invest Rs.50000. This is because ELSS investments are eligible for a tax deduction of up to Rs.1.5 lakh under Section 80C of the Income Tax Act.
Therefore, if you invest Rs.50000 in ELSS, the entire amount can be claimed as a deduction from your taxable income, resulting in potential tax savings of Rs.15000 assuming you fall in the highest tax bracket eligible for the full deduction.
How to use ELSS Tax Saving Calculator
Using a tax-saving calculator is straightforward and can help you estimate the tax benefits of investing in tax-saving instruments like ELSS (Equity Linked Savings Scheme). Here’s how you can use it:
- Input your taxable income and investments under Section 80C.
- Review the results, which show your tax liability before and after deductions.
- Analyze different investment scenarios to maximize tax savings.
- Consider seeking professional advice for personalized guidance.
How ELSS is better than Other Categories of Mutual Funds?
Here are some reasons why ELSS (Equity Linked Savings Scheme) stands out above other types of mutual funds:
Tax Benefits
ELSS offers tax deductions of up to Rs.1.5 lakh under Section 80C of the Income Tax Act, making it an attractive option for tax planning.
Short Lock-in Period
ELSS has the shortest lock-in period of just three years among all tax-saving investment options under Section 80C.
Potential for Higher Returns
ELSS Primarily invests in equities, which historically have the potential to generate higher returns over the long term compared to other asset classes like debt or commodities.
Systematic Investment
ELSS allows investors to benefit from rupee cost averaging and compound returns by investing systematically through Systematic Investment (SIPs)
Diversification
ELSS funds typically invest in a diversified portfolio of stocks across various sectors and market capitalizations, reducing the risk associated with concentrated investments.
Transparency
ELSS funds provide regular updates on their portfolio holdings and performance, offering transparency to investors.
Professional Management
ELSS funds are managed by experienced fund managers who actively monitor and adjust the portfolio based on market conditions and investment objectives.
Wealth Creation
ELSS not only helps in tax saving but also serves as a tool for long-term wealth creation and achieving financial goals like retirement planning or wealth accumulation.
Flexibility
ELSS funds offer flexibility in terms of investment amount, allowing investors to start with as low as Rs.500 through SIPs and invest based on their financial capacity.
Capital Appreciation
ELSS funds aim to deliver capital appreciation over the long term by investing in quality stocks with growth potential, matching the wealth creation objectives of investors.
These factors collectively make ELSS a preferred choice for investors looking to save taxes while aiming for potentially higher returns compared to other categories of mutual funds.
Who Should Invest in Quant ELSS Fund
Investing in Quant ELSS Tax Saver Fund may be suitable for individuals who:
Seek Tax-Saving Opportunities
Those looking for tax benefits under Section 80C of the Income Tax Act may find Quant ELSS Fund appealing due to its eligibility for tax deductions.
Have a Long-Term Investment Horizon
Since ELSS funds have a lock-in period of three years, investors with a long-term investment horizon who can stay invested for this duration may benefit from potential capital appreciation.
Are Comfortable with Market Fluctuations
As an equity-linked scheme, Quant ELSS Fund invests predominantly in equities, which are subject to market volatility. Investors should be comfortable with fluctuations in the value of their investments.
Prefer Professional Management
Investors who prefer to delegate investment decisions to experienced fund managers may find Quant ELSS Fund attractive, as it is managed by professionals who actively monitor and adjust the portfolio based on market conditions.
Seek Potential for Higher Returns
Those looking for the potential to earn higher returns compared to traditional tax-saving instruments like PPF or NSC may consider investing in Quant ELSS Fund, as it primarily invests in equities with the aim of delivering long-term capital appreciation.
Understand the Risks Involved
Investors should have a good understanding of the risks associated with equity investments, including market volatility and potential loss of capital, and be prepared to accept these risks.
It’s important for investors to assess their own financial goals, risk tolerance, and investment objectives before investing in Quant ELSS Fund or any other mutual fund scheme. Consulting with a financial advisor can also help in determining whether Quant ELSS Fund aligns with their investment needs.
Conclusion
In summary, the Quant ELSS Tax Saving Fund offers a lucrative opportunity for tax-efficient wealth accumulation. With over two decades of experience, proactive management, and tax-saving benefits under Section 80C, it stands out among mutual fund options. Additionally, its short lock-in period, potential for capital appreciation, and Systematic Investment Plans make it an attractive choice for investors seeking long-term financial growth. Overall, Quant ELSS Fund provides a compelling solution for optimizing tax-saving strategies and building wealth effectively.