Planning with Bandhan ELSS Tax Plan Your Future Growth

Bandhan ELSS


In the world of finance, investing in Mutual Funds is the smart choice to save money. There are multiple investment options but among them, Bandhan ELSS Tax Saver Fund has emerged as investors first choice.

This fund scheme was launched on 26th Dec 2008 and has generated 18.12% returns since its inception.

In this article, we will study the various topics like goals, advantages & disadvantages of this scheme. Furthermore, will be discussing the role that the fund manager plays in the success of this scheme. And lastly, we will look at the suitability based on different types of investors. Let us start our analysis.

Studying the Fund’s Objective

Diverse Stock Portfolio

This fund intends to develop a portfolio that contains a wide range of publicly traded equities.

Focus on Strong Financial Standing

It chooses firms with strong financial foundations. These firms have a track record of financial stability and success.

Reasonable Valuations

This fund focuses on firms that are reasonably valued in the market. This means it looks for stocks that are not regarded as expensive.

Equities for Growth

The fund’s major focus is on investing in equities. Stocks have the growth potential, making them a key part of the portfolio.

Flexibility in Allocation

While the fund’s primary concentration is on equities. It dedicates up to 20% of its assets to debt and money market instruments. This allocation provides stability to the portfolio in the Bandhan ELSS Tax Saver Fund.

Balanced Approach

By combining equities and debt or money market instruments, the fund seeks to find a balance between growth prospects and risk mitigation.

Growth Potential

The fund’s stock investments aim to provide investors with long-term capital appreciation potential.

Stability Measures

The presence of debt and money market instruments strengthens the portfolio and protects against market downturns or volatility.

Overall, the fund’s strategy seeks to provide investors with a well-rounded investment opportunity. It provides opportunities for development through stocks. Meanwhile also combining safety measures through debt and money market assets.


What are the pros & cons of investing in Bandhan ELSS Schemes?

There are many benefits to investing in this particular fund scheme. Let us discuss both these separately.

Start with learning the advantages which are as follows:

Tax Benefits

Bandhan ELSS (Equity Linked Savings Scheme) provides tax benefits under Section 80C of the Income Tax Act. Investors can claim a deduction of up to Rs.1.5 lakh every fiscal year, which reduces their taxable income.

Potential for Higher Returns

ELSS plans generally invest in stocks, which have the potential to outperform traditional investing channels such as fixed deposits or bonds over time.

Lock-in time

While ELSS plans need a three-year lock-in time, it instills discipline in investors by prohibiting hasty withdrawals. This encourages investors to stay involved for the long term, which can help with wealth building.


Bandhan ELSS schemes invest in a diverse range of equities from various industries and market capitalizations. Diversification reduces risk while possibly increasing rewards.

Professional Management

These schemes are handled by skilled fund managers who perform extensive study and analysis before making investment decisions. Investors benefit from these specialists’ experience in managing their money.


Now let’s focus on remembering the drawbacks of investing in this scheme.

Market Risks

ELSS funds invest in stocks, which are susceptible to market volatility. The value of assets might change depending on market conditions, and there is a risk of financial loss, particularly in the near term.

Lock-in Period

The lock-in period encourages long-term investing, but it also limits liquidity. Investors are unable to redeem their investment before three years have passed, which may be a worry for people who want cash immediately.

No Guaranteed Returns

Unlike fixed deposits, ELSS programs do not provide guaranteed returns. The scheme’s success is dependent on the performance of the underlying equity markets, and returns are not guaranteed.

Taxation on earnings

While ELSS plans to provide tax benefits on the primary amount invested. The profits on these investments are liable to long-term capital gains tax. If they exceed Rs.1 lakh in the current financial year.

Underperformance Risk

Despite competent management, the ELSS plan has the potential to underperform its benchmark. Peers owing to a variety of variables such as market circumstances, stock selection, or economic trends.


Understanding the Role of Fund Manager

MR Daylynn Pinto has an extensive knowledge of 12 years in the finance industry. Under his leadership, the fund has shown great improvements. On the educational front, he holds a Post Graduate Diploma in Management (PGDM) and a Bachelor’s degree in Commerce. His instincts and expertise bring valuable insights while managing this fund.

Who should invest?

The Bandhan ELSS Tax Saver Fund Scheme might be suited for a variety of investors, including:

Tax-conscious investors

Individuals wishing to save taxes under Section 80C of the Income Tax Act might consider investing in the Bandhan ELSS Scheme to reap tax benefits while engaging in the stock markets.

Long-term investors

This scheme normally has a three-year lock-in period, which promotes long-term investment goals. Long-term investors may profit from possible wealth appreciation.

Equity investors

The Bandhan ELSS Scheme’s concentration on equity shares may appeal to investors seeking exposure to equity markets with the potential for better long-term profits.

Diversification seekers

The program offers exposure to a diverse portfolio of companies from various sectors and businesses, thus dispersing investment risk. Investors looking to diversify their portfolios may find this interesting.

Individuals having a long-term financial outlook

Bandhan ELSS Scheme seeks long-term capital appreciation. This program may be suitable for investors with long-term financial objectives, such as retirement planning or asset creation.


Investing in the Bandhan ELSS Scheme has various advantages, including tax savings, better returns, and professional management by experienced fund managers such as Mr. Daylynn Pinto. However, it is critical to evaluate the market risks, the lock-in period, and the lack of guaranteed returns. This plan may be appropriate for tax-aware investors, long-term investors, equities lovers, diversifiers, and persons with long-term financial goals. Additionally, it has an online Systematic Investment Plan to give investors the flexibility to invest from their homes. The SIP provides a systematic and disciplined approach to investing. The minimum amount is INR500, which also allows the investor to adjust as per their needs. Overall, it provides a chance for investors to meet their financial objectives while managing risk and possible rewards in the volatile world of finance.



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