This ELSS Fund May Help You Save Tax and Build Long-Term Wealth

ELSS Fund May Help You Save Tax

Published on March 5th, 2024

The financial year-end is fast approaching, and it’s time to make some smart investment decisions to save tax under Section 80C of Income Tax Act, 1961.

One of the best options is investing in an Equity Linked Savings Scheme (ELSS) mutual fund.

Not only does it help you save tax, but it also creates long-term wealth. One such fund to consider is the Bandhan ELSS Tax Saver Fund.

What Is An ELSS Fund?

An ELSS mutual fund or Equity Linked Savings Scheme is a type of diversified equity mutual fund that gives tax benefits under Section 80C of the Income Tax Act, 1961 up to ₹1.5 lahks in a financial year.

An ELSS has one of the shortest lock-in period of 3 years compared to other tax-saving instruments.

As an open-ended scheme, it allows additional investments after the initial investment.

ELSS funds predominantly invest in equities, making them a potential wealth creator in the long run. Historically, ELSS funds have delivered optimal returns  over the years.

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Why Invest In Bandhan ELSS Tax Saver Fund?

Launched in December 2008, the Bandhan ELSS Tax Saver  fund may be a suitable tax-saving scheme to invest in.

With assets under management of ₹5,976 crore as of 31st January  2024, it has created significant wealth for investors over the years.

Here are some key benefits of investing in the Bandhan ELSS Tax Saver l Fund:

  • Tax Savings under Section 80C: The principal investment of up to ₹1.5 lakh qualifies for tax deduction under Section 80C of Income Tax Act, 1961. This helps reduce your taxable income for the year.
  • Wealth Creation through Equities: With nearly 95% allocation to equities, the fund focuses on companies with high growth potential across market capitalisations and sectors.
  • Long Track Record: The fund has over 15 years of experience in navigating various market cycles effectively.
  • Strong Fund Performance: The fund has delivered an absolute annualised return of 18.74% in the last 10 years, beating the category average as seen below:
Scheme Name CAGR Returns (%) Current value of Investment of ₹10,000
1 Yr 3 Yr 5 Yr 10 Yr 1 Yr 3 Yr 5 Yr 10 Yr
Bandhan ELSS Tax saver Fund – Regular Plan – Growth 34.31 26.55 20.84 18.74 13,431 20,293 25,779 55,758

The above data is as on 31st January, 2024

The performance has led to considerable wealth creation over both short-term and long-term investment horizons.

How To Invest In Bandhan ELSS Tax Saver Fund?

You can invest a lumpsum or through SIP in Bandhan ELSS Tax Saver  Fund through any of the following modes:

  • Bandhan Mutual Fund Website
  • Online investment platforms
  • Offline by visiting the nearest investor service centre

The minimum application amount is ₹500 and in multiples of ₹500 thereafter. There is no maximum limit. Invest now to save tax and grow your wealth.

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In conclusion, Bandhan ELSS Tax Saver  Fund may be a suitable tax-saving investment under Section 80C with additional benefits of wealth creation over the long term.

So, if you want to save tax and build your equity portfolio, Bandhan ELSS Tax Saver Fund may be a suitable choice to consider this financial year-end.

Feature Image Source: Kelly Sikkema