Finance

Why Axis Long Term Equity Fund Is The Best ELSS Scheme Out There

If you are wondering where to invest your money to save tax this fiscal year or in the coming financial year, you should consider investing in Equity Linked Savings Scheme. ELSS is the best way to save tax as you not only invest in a scheme that gives you a chance to earn better capital appreciation, but you can also save up to Rs. 46,800 in taxes. ELSS has a non-traditional tax saving instrument that comes with a short lock in period. It is the only type of mutual fund scheme that offers a tax benefit. There are no other mutual fund schemes except ELSS that come with tax exemption benefits. Section 80C of the Indian Income Tax Act, 1961 allows investments of up to Rs 1.5 Lac in ELSS eligible for a tax rebate.

If you wish to wish in ELSS and save tax, you should consider Axis Long Term Equity Fund.

Axis Long Term Equity Fund is an equity mutual fund scheme that also comes with a tax benefit. Axis Long Term Equity Fund is the ELSS scheme offered by Axis Mutual Fund. The scheme is running for more than 10 years now and is one of the best schemes out there.

Benefits of Investing in Axis Long Term Equity Fund

Axis Long Term Equity Fund is an ELSS scheme that invests in a mix of large caps and selects mid cap stocks. Some of the stocks that this fund invests in are Bajaj Finance Limited, Avenue Supermarts Limited (DMart), Tata Consultancy Limited, Info Edge (India) Limited, Kotak Mahindra Bank, Housing Development Finance Corporation Limited, Nestle India, etc. These are some of the most credible and renowned companies that have a reputation in the market for being financially stable.

Another reason to invest in Axis Long Term Equity Fund is that it comes with a short lock-in period of three years. This is the shortest lock-in among other tax saving instruments under Section 80C like PPF and FDs that have lengthy lock-ins ranging from 5 years to 15 years. Since ELSS has a lock-in of only three years, investors can redeem their investments upon maturity and can utilize them for their financial needs.

The ELSS scheme offered by Axis Mutual Fund is managed by Mr. Jinesh Gopani who has more than 19 years of work experience and is managing the fund since its inception in 2011. An experienced fund manager can always take better investment decisions, especially during volatile market conditions. Also, since you remain invested for a minimum period of three years, exposure to equity markets can help you earn some decent returns as well. So not only do you save tax but at the same time, you also earn capital appreciation. Historically, ELSS funds have outperformed every other type of traditional tax saving investment avenue. For the last five years, Axis Long Term Equity Fund has had an average CAGR of 15.53% which is twice as much as what the current fixed income tax saving instruments are offering.

Why should I invest in Axis Long Term Equity Fund?

Axis Long Term Equity Fund is an equity linked scheme that has very high investment risk. However, one can invest in this scheme over the long run via SIP and mitigate investment risk. Also, if you have long term goals to achieve then Axis Long Term Equity Fund is the scheme for you. Equity mutual funds only perform over the long haul and need their own sweet time to perform to their fullest potential. Axis Long Term Equity Fund is probably the best scheme out there for saving tax and long term wealth creation.

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