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ELSS investment: Rs 5000 monthly SIP in this fund would have given you 4 Apple iPhone 14s in 3 years!

In the last three years, Quant Tax Plan, an ELSS scheme from Quant Mutual Fund, has topped the ELSS category with over 40% returns.

ELSS investment: Rs 5000 monthly SIP in this fund would have given you 4 Apple iPhone 14s in 3 years!
Quant Tax Plan ELSS scheme has given very high returns since inception. Representational image

Equity-Linked Savings Scheme (ELSS) help investors claim tax deduction up to Rs 1.5 lakh under Section 80C. This is why ELSS schemes are also popularly known as tax-saving funds. Interestingly, ELSS investors are not just able to save tax but also earn annualised compounded returns if the fund grows.

In the last three years, Quant Tax Plan, an ELSS scheme from Quant Mutual Fund, has topped the ELSS category with over 40% returns. While the three-year return under the direct plan of the scheme is 43.10%, the regular plan’s return in the same period is 40.38%.

Mutual fund calculator shows that a monthly SIP of Rs 10,000 in the direct plan of Quant Tax Plan would have grown to Rs 7.37 lakh in three years. Monthly SIP of Rs 5000 would have grown to Rs 3.7 lakh, which is nearly equivalent to the price of four iPhone 14 (256 GB). An iPhone 14 256 GB is currently selling at Rs 89,900 on Amazon.

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The scheme’s regular plan has returned annualised interest of 21.93% and 20.37% in 5 and 10 years respectively.

Here are 5 things to know about Quant Tax Plan:

  1. Quant Tax Plan has been rated 5 Star by Value Research. The scheme carries “Very High” risk.
  2. The minimum amount required for investing in this fund is Rs 500. The minimum SIP amount is also Rs 500. A monthly SIP of Rs 500 in this scheme would have grown to Rs 37,079 in three years.
  3. As per the scheme document, Quant Tax Plan is an open-ended equity-linked saving scheme with a statutory lock-in of 3 years and tax benefit. It was launched in March 2000. The direct plan of this scheme has given a return of 21.53% since inception.
  4. The scheme aims to generate Capital Appreciation by investing in a diversified portfolio of Equity Shares with growth potential. This income may be complemented by possible dividends and other income, according to the scheme’s document.
  5. Quant Tax Plan tracks NIFTY TRI Index. It has Nil Entry and Exit Load. The scheme is available under both Regular Plan and Direct Plan. Both these plans have a common portfolio.

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(Mutual Fund investments are subject to market risks. There is no guarantee or assurance that a fund will repeat its past performance. Therefore, consult your financial advisor before making any investment decision)

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