How a monthly SIP of Rs 10,000 grows to Rs 13.9 lakh in 7 years

ELSS Mutual Fund: How a monthly SIP of Rs 10,000 grows to Rs 13.9 lakh in 7 years

Investing in an Equity Linked Saving Scheme (ELSS) mutual fund has the dual benefits of tax deductions and wealth generation over time. ELSS mutual funds have a lock-in period of just three years, the shortest of any tax-saving investment, and have the potential to offer the highest returns among 80C options. This is the reason why many investors prefer the ELSS SIP Mutual Fund over the Public Provident Fund (PPF) when it comes to opting for a tax-saving investment option. Among many ELSS mutual funds, a standout artist has been JM Tax Gains Fund – Direct Plan.

JM Tax Gain Fund – Direct Plan generated an annual return of 12% over 5 years, beating the category’s return over that period by 10.94%.

Mutual Fund Performance

Over the past two years, this fund has produced an annual return of 27.45 and an absolute return of 62.45. Over the past three years, JM Tax Gain Fund – Direct Plan has generated an annual return of approximately 16%, while it has generated an absolute return of approximately 56.20% over this period. Similarly, over the past 5 years, this mutual fund plan has returned just over 12% beating the category return of 10.94% over this period.

This mutual fund scheme was launched in January 2013 and since its inception, this ELSS mutual fund scheme has yielded an annual return of approximately 15.45%, beating the average return for its category of 14.15 %.

Return SIP

If an investor had started a monthly SIP of Rs 10,000 in JM Tax Gain Fund – Direct Plan three years ago, his investment would have reached Rs 4.57 lakh today. If the investor had started a monthly SIP of Rs 10,000 in this ELSS mutual fund plan five years ago, his monthly investment of Rs 10,000 would have reached Ra 8.48 lakh today. Similarly, if an investor had started a monthly SIP of Rs 10,000 in this ELSS plan seven years ago, his monthly savings of Rs 10,000 would have turned into Rs 13.90 lakh today.

JM Tax Gain Fund – Direct Plan has 93.57% exposure to domestic stocks, of which 58.82% are large cap stocks, while 22.58% of domestic stocks belong to mid cap stocks.

Mirae Asset Tax Savings Fund – Direct PlanDSP Tax Saver Fund – Direct Plan, Canara Robeco Equity Tax Saver Fund – Direct Plan and IDFC Tax Advantage (ELSS) Fund – Direct Plan are some of the peers that have also given outstanding returns to its investors in recent years.