Kotak Mahindra ELSS Mutual Fund

Investment Objective

The investment objective of the Kotak Mahindra ELSS Mutual Fund offers investors to stimulate their investment corpus by making investments in the equity market. The Kotak Mahindra is one of India's most renowned financial institutions. The Kotak Mahindra ELSS Mutual fund operates with a team of experienced and seasoned professionals who fully grasp the equity market's intricacies.

Risks Involved in Kotak Mahindra ELSS Mutual Fund

The Kotak Mahindra ELSS Mutual fund risk-to-reward ratio is high compared to debt and hybrid mutual funds. As the investments made are in the equity market, the corpus invested is subject to market fluctuations. One has to also account for the currency risk factor while investing in Kotak Mahindra ELSS mutual fund, in case the fund foreign securities feature in the investment portfolio.

Return Potential of Kotak Mahindra ELSS Mutual Fund

Investments in equity and equity-related securities in the Kotak Mahindra ELSS mutual funds can obtain handsome returns through capital appreciation and dividends. If the investment portfolio of the fund performs well, so make the investor's investments. However, investors should account for the risk factors as the investments are made in the equity market that is not immune to volatility.

Who Should Invest in Kotak Mahindra ELSS Mutual Fund?

The investors who are invested in stimulating their investment corpus should invest in the ELSS mutual fund scheme. The Kotak Mahindra ELSS Mutual Fund scheme provides the investor with an avenue to make substantial profits off the share market. Investors with a long-term horizon should invest in this mutual fund scheme. Anyone with a healthy risk appetite who wants to avail of tax benefits under the Section 80C scheme should invest in this mutual fund.

Things To Consider Before Investing in Kotak Mahindra ELSS Mutual Fund

Investors who want to invest in the Kotak Mahindra ELSS Mutual Fund scheme should consider the following factors before investing in this investment product. The investor should evaluate the following factors before investing:

• Meticulously examine the risk-to-reward ratio of the scheme as the investments are subject to market risks.
• The investor must also identify their investment needs and select the scheme that complements their investment goal.
• The investor must also look into the expense of the investment as it affects the Net Value Asset (NAV).

Tax on Kotak Mahindra ELSS Mutual Fund

Under Section 80C of the Income Tax Act, the investments made in the ELSS are eligible for Tax benefits. That indicates that an investor can claim tax deductions of up to Rs 1.5 Lakhs in a financial year. This feature gravitates investors towards the Kotak Mahindra ELSS Mutual Fund. It is to be noted that capital gains on long-term investments, i.e. more than three years, are taxed at a rate of 10% per annum if the gains are less than Rs One Lakhs. And 20% in case the capital gains are more than Rs 1 Lakhs.