Introduction
Investing can be quite intimidating, especially when one considers the tax implications. The Mirae Asset Tax Saver Fund, however, seeks to streamline the procedure. In this piece, we’ll go into more detail about the benefits of investing in this plan. We’ll go over how it might help with Section 80C tax deductions, its main advantages and whether or not investors can use Systematic Investment Plans (SIPs) with this program. By comprehending these features, investors can navigate their Mirae Asset Tax Plan investment path with clarity and confidence. Let’s examine how this strategy might simplify the intricate tax and investment processes.
But before we delve into this article, let us quickly recap this fund scheme. The Mirae Asset ELSS Scheme was launched on 1st Dec 2015.
It has generated 18.44% returns since its inception with a consistent performance in the industry. This fund scheme has a total Asset Under Management (AUM) of INR21,301.58 Cr as of 29.02.24. Let’s begin the analysis with us.
Is Mirae Asset ELSS Fund Eligible for 80C?
- When looking for investment options that offer tax-saving benefits, investors often consider whether they are eligible for tax benefits under Section 80C of the Income Tax Act.
- The good news is that the Mirae Asset Tax Plan, which is an Equity Linked Savings Scheme (ELSS), is indeed eligible for tax benefits under Section 80C.
- Section 80C of the Income Tax Act allows investors to claim a deduction of up to Rs.1.5 lakh in a financial year on investments made in specific instruments, including ELSS funds such as the Mirae Asset Tax Plan.
- This deduction helps reduce the taxable income, thereby lowering the overall tax liability of the investor.
- By investing in the Mirae Asset Tax Plan, investors can not only enjoy tax benefits.
- It also potentially earns higher returns as it invests primarily in equity and equity-related securities.
- The scheme also has a lock-in period of three years, which encourages long-term investment and helps in generating better returns.
Advantages of Mirae Asset ELSS Tax Saving Fund
Investing through the Mirae Asset Tax Plan has several benefits.
Tax Savings
Section 80C tax benefits are available to investors who invest in the Mirae Asset Tax Plan. Investors can cut their taxable income and consequently their tax outflows by contributing up to Rs.1.5 lakh to this scheme.
Possibility of Greater Returns
The Mirae Asset Tax Plan invests mostly in stocks. It offers a greater chance of producing returns than more conventional tax-saving options like Public Provident Funds (PPF) or Fixed Deposits (FDs). Since stocks often beat other asset classes over the long run, this fund is a desirable choice for building wealth.
Expert Management
Skilled fund managers oversee the Mirae Asset Tax Plan, conducting in-depth investigations. They evaluate to identify the top investment possibilities. Effective risk management along with return maximization is made possible by this expert management.
Lock-in time
A three-year lock-in time is attached to ELSS funds, such as the Mirae Asset Tax Saver Fund. Although at first, this might seem like a disadvantage. It helps investors become more disciplined and promotes long-term wealth creation. Furthermore, the lock-in period guarantees that investors do not give in to short-lived market swings and instead remain dedicated to their investing objectives
Diversification
A portfolio of companies with varying market capitalizations and sectors is invested in by the Mirae Asset Tax Plan. This diversity lessens the impact of market volatility and helps to disperse risk.
Fund Manager’s Profile
The company’s head of equity, MR. Neelesh Surana has 24 years of total experience. Since 2008, Neelesh Surana has been employed at Mirae Asset. He is in charge of the investment and stock research team as Head of Equities. In addition to overseeing Mirae Asset’s current equity funds in India, his duties also include assisting with research for the company’s global mandate. The growth of Mirae Asset’s stock portfolio and the direction of investment decisions depend heavily on Neelesh’s abilities and leadership.
Can I do SIP in the Mirae Asset ELSS Fund Scheme?
In the Mirae Asset Tax Plan, investors may choose to participate in Systematic Investment (SIPs). With SIPs, clients can invest a certain amount in their preferred fund at regular intervals (often monthly). SIPs have various advantages, such as:
Rupee Cost Averaging
Through SIPs, investors can buy Mirae Asset Tax Saver Fund units at varying prices over time. This aids in balancing the investment costs and lessens the effect of market fluctuations on the total investment.
Investing Discipline
By automating the investment process, SIPs encourage investing discipline. Investors can establish SIPs by their convenience and financial objectives, guaranteeing consistent contributions towards the accumulation of wealth.
Flexibility
SIPs allow for flexibility in the quantity and frequency of investments. Depending on their financial objectives and risk tolerance, investors can select the amount and frequency of their investments.
Conclusion
The Mirae Asset ELSS Tax Saver Fund is an exceptional investment option for those looking to invest in mutual funds. This fund has consistently delivered outstanding returns. And has gained significant attention from the finance industry. With a return of 18.44% since its inception, the fund has established a reputation for excellent performance even in challenging market conditions. It is managed by Mr Neelesh Surana, a renowned expert in the field of finance. He lends his extensive knowledge to ensure that the fund continues to perform consistently. In conclusion, the Mirae Asset ELSS Tax Saver Fund is an excellent investment option for those looking for a reliable. And profitable mutual fund. The Mirae Asset ELSS Tax Saver Fund is an exceptional investment option for those looking to invest in mutual funds. This fund has consistently delivered outstanding returns and has gained significant attention from the finance industry. With a return of 18.44% since its inception, the fund has established a reputation for excellent performance even in challenging market conditions. It is managed by Mr Neelesh Surana, a renowned expert in the field of finance, who lends his extensive knowledge to ensure that the fund continues to perform consistently. In conclusion, the Mirae Asset ELSS Tax Saver Fund is an excellent investment option for those looking for a reliable and profitable mutual fund. The investing style and systematic approach have led the fund to its success. This scheme serves as a great opportunity for investors with long-term goals. It also offers a Systematic Investment Plan through online platforms. SIP offers the benefits of collective returns and adds wealth to the portfolio.
