Nippon India ELSS Mutual Fund

Investment Objective of Nippon India ELSS Mutual Fund

The primary investment objective of the Nippon India Tax Saver (ELSS) Fund is to generate long-term capital appreciation from a portfolio that is predominantly invested in equity and equity-related instruments.

Risks Involved in Nippon India ELSS Mutual Fund

Investing in the Nippon India Tax Saver (ELSS) Fund involves market risks. The scheme’s performance may be affected by various factors, including but not limited to market volatility, economic developments, and issuer-specific changes. Furthermore, the value of the investment can decrease due to factors beyond the fund manager’s control. Investors should read the offer document carefully and seek professional advice before investing in the scheme.

Return Potential of Nippon India ELSS Mutual Fund

The Nippon India Tax Saver (ELSS) Fund returns may be subject to market fluctuations, and there is no assurance of any particular rate of return. However, over the long term, ELSS funds have historically provided higher returns than traditional tax-saving instruments such as Public Provident Fund (PPF) and National Savings Certificate (NSC).

Who Should Invest in Nippon India ELSS Mutual Fund?

The Nippon India Tax Saver (ELSS) Fund suits investors seeking tax savings and long-term capital appreciation. As ELSS funds have a lock-in period of three years, investors should have a long-term investment horizon. Furthermore, investors should be willing to bear the market risks associated with equity investments.

Things To Consider Before Investing in Nippon India ELSS Mutual Fund

Before investing in the Nippon India Tax Saver (ELSS) Fund, investors should consider the fund’s investment objective, strategy, and risk factors associated with the scheme. Investors should also assess their risk appetite and investment horizon before investing in the scheme. Furthermore, investors should read the offer document and seek professional advice.

Tax on Nippon India ELSS Mutual Fund

Investments made in the Nippon India Tax Saver (ELSS) Fund are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. The maximum amount that can be claimed as a deduction under this section is Rs. 1.5 lakhs in a financial year. Additionally, the long-term capital gains on the investment are tax-free up to Rs. 1 lakh in a financial year. Any gains above this limit are subject to a tax of 10%.