As the year 2024 approaches, investors in India are looking for the best tax-saving options, and ELSS (Equity Linked Saving Scheme) mutual funds are gaining popularity. ELSS funds offer tax benefits under Section 80C of the Income Tax Act, making them an attractive investment option for individuals looking to save on taxes while potentially earning higher returns.
An article by Suresh KP on Myinvestmentideas.com provides a comprehensive guide on the best tax-saving ELSS mutual funds to invest in 2024. The article explains the concept of ELSS funds, their working mechanism, benefits, and associated risks. It also lists the top 5 ELSS funds for 2024 based on their past performance and other criteria. The author emphasizes the importance of considering factors such as fund performance, consistency, fund manager's track record, and expense ratio when selecting ELSS funds.
The article highlights that ELSS funds are suitable for individuals with a higher risk appetite and a long-term investment horizon. It compares ELSS funds with other tax-saving schemes such as fixed deposits, PPF (Public Provident Fund), and NPS (National Pension Scheme), discussing the advantages and disadvantages of each option. The author also addresses frequently asked questions about ELSS funds, providing clarity on topics such as lock-in period, SIP (Systematic Investment Plan) investment, and tax implications.
To help investors make informed decisions, the article mentions the top-rated ELSS funds according to ValueResearch and Moneycontrol. It advises investors to consider their financial goals, risk tolerance, and investment horizon before selecting an ELSS fund. The author also recommends consulting with a financial advisor to align investments with individual needs and objectives.
In a recent article by Zee Business, it is revealed that Quant ELSS Tax Saver Fund has been the best performing ELSS mutual fund in the last three years with an annualized return of 31.05%. On the other hand, Quant Small Cap Fund has topped the small-cap mutual fund category with annualized returns of 46.61%. The article provides tax calculations that show a lump sum investment of Rs 10 lakh in Quant Small Cap Fund would have given a total return of Rs 31,51,191.61 in three years, while the best ELSS fund would have given a net income of Rs 10,35,825 after three years. Therefore, the best small-cap mutual fund would have given Rs 6,60,243.45 more returns than the best ELSS mutual fund.
According to a recent article by Mint, large cap, mid cap, and value funds are the best mutual funds to invest in 2024 based on their past one-year returns. Large cap schemes provide relatively stable returns and lower volatility. Mid cap funds offer diversification and strong growth potential. Value funds employ a value investment strategy and allocate at least 65 percent of their assets to stocks. The list of best mutual funds includes Taurus Large Cap Fund, Quant Large Cap Fund, JM Large Cap Fund, Bank of India Bluechip Fund, Nippon India Large Cap Fund, HDFC Mid-Cap Opportunities Fund, HSBC Midcap Fund, Mahindra Manulife Mid Cap Fund, JM Midcap Fund, Quant Mid Cap Fund, Quant Value Fund, Nippon India Value Fund, JM Value Fund, and HSBC Value Fund. The returns are as of February 8, 2024.
Investing in mutual funds can be beneficial for investors looking for long-term growth and diversification. Several large cap mutual fund schemes have provided one-year returns of up to 60%, including Quant Large Cap Fund, JM Large Cap Fund, Bank of India Bluechip Fund, Taurus Large Cap Fund, and Nippon India Large Cap Fund. Mid-cap mutual fund schemes, such as Quant Mid Cap Fund, Mahindra Manulife Mid Cap Fund, JM Midcap Fund, HDFC Mid Cap Opportunities Fund, and HSBC Midcap Fund, are ideal for diversifying portfolios. Value fund mutual fund schemes, including Quantitative Value Fund, ABSL Pure Value Fund, Nippon India Value Fund, and HSBC Value Fund, allocate at least 65% of their assets to equity securities. Mutual fund investment schemes are market-based and come with risks. However, they generally provide good returns compared to other investment schemes. The mutual fund market in India has grown well in the past.
In a recent article by Mint, Deepak Ramaraju, Senior Fund Manager at Shriram AMC, discusses the current market conditions and predicts a market rebound post-elections. He recommends Equity Linked Savings Schemes (ELSS) for tax-saving and long-term capital appreciation. Despite the new tax regime, ELSS remains appealing to investors due to its strong risk-adjusted returns. Around one-third of ELSS funds have surpassed benchmarks. The new tax regime is yet to have any meaningful impact on the demand for ELSS schemes.
In summary, ELSS funds continue to be a popular tax-saving investment option in India. However, investors should also consider the potential returns offered by small-cap mutual funds. While ELSS funds provide tax benefits, small-cap funds have shown higher returns in recent years. Investors should carefully evaluate their risk appetite, investment horizon, and financial goals before making a decision. Consulting with a financial advisor can also provide valuable guidance in selecting the most suitable investment option.