Introduction
In the financial landscape, smart saving takes us a long way. It is important to be well-informed regarding the advancements happening around us. Since the rise of the Mutual Fund industry, saving money has become simple. Additionally, mutual funds have a unique category which offers tax benefits. Yes, these are broadly known as the ELSS schemes. This category is specially designed to relieve us of our tax burden. Under this scheme, the ICICI ELSS Tax Saver Fund has gained a lot of attention.
Let’s learn a little more about this particular scheme. Well, the ICICI ELSS Scheme was launched on 19.08.1999. Since its inception, this scheme has generated 19.39% returns showing a strong performance. This scheme has a total of INR12,894.81 Cr Asset Under Management (AUM) as of 2902.24.
In this article, we will cover the important details like the advantages, key features, types of investment etc. We will also be studying the vital role that the fund manager plays in the success of this fund. Let’s start by discussing the goodness of this fund to investors.
How Good is the ICICI ELSS Tax Saver Fund?
To determine whether a fund is a good fit for us or not we look at the performance of the past years. The track record shows consistency and probability of delivering promising returns. In other words, the track record acts as a security and a sense of safety to the investing party. Let us understand the factors that make a fund good for investing:
Robust Performance
With an outstanding AUM of INR12,894 Cr, this fund has gained the trust of its investors. The Asset Under Management (AUM) shows the no. of investors under the scheme. All because of the consistent performance and outstanding returns generated by this fund.
Professional Management
This fund is handled by an expert in the finance field, bringing 12 years of knowledge with her. Managers are the backbone of the fund scheme.
Investing Strategy
A systematic and balanced approach to investing leads to a long path of success. The whole performance is the outcome of the investing strategy applied. Make sure that the fund’s strategy matches individual investment goals.
Diversity of schemes
To sum up, these are some factors on which one can determine if the fund is a right fit for them. Make sure that the investment objective aligns with the foundations of a particular scheme. It will result in giving the desired returns that one seeks. And fulfils one’s purposes of investment.
Understanding the Key Features of ICICI ELSS Tax Saver Fund
Focus on Long-Term Wealth Creation
- The goal of this fund is to help investors in long-term wealth accumulation.
- It takes a calculated approach to stock investment to produce significant returns over time.
Equity-focused plan
- Investing purely in stocks, as opposed to other asset classes like bonds or commodities, is the focus of the ICICI ELSS Tax Saver Fund.
- This fund seeks to take advantage of the possible growth prospects provided by the stock market by concentrating on stocks.
Seizing Opportunities for Growth
- Utilizing its varied portfolio, the fund aims to seize expansion prospects offered by various industries and businesses.
- Through a diverse portfolio of companies, the fund can capitalize on the expansion prospects of several economic sectors.
Tax Benefits
- Under Section 80C of the Income Tax Act, investors in the ICICI ELSS Tax Saver Scheme are eligible for tax benefits.
- Investors can reduce their taxable income and save money on taxes by deducting up to ₹1.5 lakh in fund investments.
All things considered, the ICICI ELSS Tax Plan combines the advantages of equity investing and. Tax savings with an emphasis on long-term wealth growth. Investors may be able to reach their financial objectives while lowering their tax obligations by building a diversified portfolio of stocks and taking advantage of tax advantages.
Types of Investments in the ICICI ELSS Scheme
To help guide further, here are the three types through which investors can choose to invest in this fund scheme. The following options are as follows:
Growth Option
In cases where dividend payments are irregular, the growth option is selected. Rather, the investment increases in value over time and yields rewards upon redemption. When the investment’s total value rises, this may produce more gains. It should be remembered, though, that there is some risk because returns are affected by fluctuations in the market.
Dividend Option
This option entitles the recipient to receive dividend payments regularly. Note that the taxation of these dividends is contingent upon the income tax rate of the investor. Additionally, a 10% tax reduction is applied at the source if the dividends exceed Rs5,000.
Dividend Reinvestment Option
Under this option, any dividends are automatically reinvested to raise the Net Asset Value (NAV) by buying additional shares. This is beneficial since reinvesting dividends can increase the total value of your investment, especially during market rises.
Important Role of Fund Manager
Meet Ms. Sharmila D’mello, the fund manager with ten years of financial industry experience. She offers advice and insights to assist make wise investment choices.
The investment management of the ICICI ELSS Tax Saver Fund is under the leadership of Ms D’mello. She analyses risks, looks for interesting prospects, and studies industry trends using her knowledge. Her objective is to manage risks sensibly and optimize returns for investors.
Ms D’mello is a seasoned financial expert who is committed to achieving success and enhancing the fund’s performance. She is a reliable custodian of investors’ funds due to her meticulous approach to investment management and unwavering commitment to excellence.
Conclusion
In conclusion, investors looking for tax-saving solutions with the possibility to create long-term wealth will find the ICICI Prudential ELSS Tax Saver Fund to be a very attractive alternative. This fund provides a diversified approach to investing with its strong track record of performance, equity-focused strategy, and concentration on grabbing growth opportunities. Depending on their interests and financial objectives, investors can select from a variety of alternatives, including Growth, Dividend, and Dividend Reinvestment. In addition, the fund is precisely managed with. A commitment to risk management and return maximization under the competent direction of Ms. Sharmila D’mello, a seasoned financial specialist. All things considered, the ICICI ELSS Tax Plan is a solid option for investors trying to reach their financial goals and diversify their holdings. Investors looking for flexible investments can choose to Invest via a Systematic Investment Plan. It gives affordable investments while building capital for its investors.
