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Tax saver mutual funds SIP: After ushering into New Year 2022, earning individuals are looking forward towards tax saving schemes that can give them high yield as well. Those who have high risk appetite may look at Equity Linked Saving Scheme or ELSS funds because it's provides tax saving mutual funds under section 80C of the income tax act. For such investors, Value Research has give 4-star to 3 ELSS funds. However, before investing in ELSS mutual funds, an investor must note that there is 3-year lock-in period means they will have to remain invested in these tax saving mutual funds for at least 3 years. In the case of mutual funds SIP, each month SIP will have a lock-in of 3 years.
1] DSP Tax Saver Fund - Direct Plan: The 4-star rated ELSS fund is suitable for medium to long-term investors, claims Value Research. The Value Research recommends investor to invest in this tax saver mutual fund in SIP mode. As per the Value Research data, if an investor had invested lump sum ₹1 lakh in this mutual fund, 3 years ago, the absolute value of one's money would have grown up to ₹1.90 lakh today. Similarly, if an investor had started ₹10,000 monthly SIP in this ELSS fund 3 years ago, the absolute value of one's investment would have turned to ₹5.58 lakh today.
Similarly, a lump sum of ₹1 lakh invested in this ELSS mutual fund 5 years ago would have turned to ₹2.39 lakh whereas ₹10,000 monthly SIP started in this tax saver mutual fund scheme 5 years ago would have turned to an absolute value of ₹10.19 lakh today.
2] Axis Long Term Equity Fund - Direct Plan: As per the Value Research data, this 4-star rated tax saving mutual fund scheme has turned ₹1 lakh lump sum to ₹1.86 lakh in last 3 years whereas a monthly SIP of ₹10,000 started 3 years ago would have grown to an absolute value of ₹5.41 lakh today.
Similarly, ₹1 lakh lump sum would have turned to ₹2.61 lakh in last 5 years while a monthly SIP of ₹10,000 started 5 years ago would have grown up to an absolute value of ₹10.18 lakh today.
3] UTI Long Term Equity Fund - Direct Plan: As per the Value Research data, if an investor had invested a lump sum of ₹1 lakh in this 4-star rated tax saver mutual fund scheme 3 years ago, its ₹1 lakh would have turned to ₹1.86 lakh today while monthly SIP of ₹10,000 started 3-year ago in this scheme would have grown up to an absolute value of ₹5.65 lakh today.
Similarly, a lump sum of ₹1 lakh invested in this tax saving scheme 5 years ago would have turned to ₹2.31 lakh while monthly SIP of ₹10,000 started 5 years ago would have grown up to an absolute value of ₹10.18 lakh today.
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