Mirae Asset Tax Saver Fund

Investment Objective of Mirae Asset Tax Saver Fund

The primary objective of the Mirae Asset Tax Saver Mutual Fund is to generate long-term capital appreciation by investing predominantly in equity and equity-related securities of companies across market capitalisation. The fund seeks to provide tax savings under Section 80C of the Income Tax Act of 1961. The fund may also invest in fixed-income securities and money market instruments.

Risks Involved in Mirae Asset Tax Saver Fund

The risk involved in such investments is market risk, which may result in a possibility of a loss of capital. Market risk increases with a higher allocation of equity funds. Therefore, investors should assess their risk appetite before investing in such funds.

Additionally, any changes in the fund’s investment objectives may also increase the risk involved in the investment.

Return Potential of Mirae Asset Tax Saver Fund

The potential return of Mirae Asset ELSS Mutual Fund depends on the performance of the underlying investments. The fund typically invests in equity and equity-related securities and has the potential to generate returns similar to the stock markets. Investors can expect around 10-15% returns in the long term. However, there is no guarantee of returns, and investors should be aware of the associated risks before investing.

Who Should Invest in Mirae Asset Tax Saver Fund?

Mirae Asset ELSS Mutual Fund is suitable for investors with a moderately high-risk tolerance and looking for long-term capital appreciation. The fund is ideal for investors with more than three years of investment horizon. This fund is also suitable for investors seeking tax-saving benefits under Section 80C of the Income Tax Act.

Things To Consider Before Investing in Mirae Asset Tax Saver Fund

Before investing in Mirae Asset ELSS Mutual Fund, one should consider the following factors.

1. Investment Horizon: Before investing in Mirae Asset ELSS Mutual Fund, you should determine your investment horizon. Your investment horizon should be at least five years since ELSS funds are long-term investments.

2. Risk Tolerance: When investing in Mirae Asset ELSS Mutual Fund, you should also consider your risk tolerance level. ELSS funds are considered high-risk investments, so you should be comfortable with the level of risk before investing.

3. Investment Goals: Consider your investment goals before investing in Mirae Asset ELSS Mutual Fund. Are you looking to save for retirement, a child’s college education, or build wealth? Knowing your investment goals can help you determine your best investment option.

4. Tax Benefits: ELSS funds offer attractive tax benefits, so it is crucial to consider the tax implications of investing in Mirae Asset ELSS Mutual Fund before investing.

5. Fund Performance: Before investing, you should also consider the fund’s performance. You should look at the fund’s historical performance, fees, and expenses to ensure it fits your investment goals well.

Tax on Mirae Asset Tax Saver Fund

The tax on Mirae Asset ELSS Mutual Funds is subject to capital gains tax. The tax rate is 10% for investments held for over a year. For investments held for less than one year, the tax rate is 15%. Short-term capital gain taxes are applicable for investments held for less than 36 months.