Quant Tax Saver Mutual Fund

Investment Objective

Diversified equity funds called Quant ELSS Mutual Funds are designed to give investors the chance to accumulate wealth in the long run. According to the fund's mandate, the fund's primary investments are in equities and derivatives related to equities in a specific proportion. After doing thorough research, the fund manager chooses high-quality equities to guarantee that the returns from the portfolio continue to meet expectations. The lock-in period for these funds is three years. Under Section 80C of the Income Tax Act, you are qualified for a tax deduction amounting to Rs 1.5 lakh when you invest in Quant MF ELSS Funds. Your investment is deducted from the taxable income in this scenario, and hence your overall tax obligation is decreased.

Risks Involved in Quant ELSS Mutual Fund

Comparing Quant ELSS Mutual Funds to balanced funds and debt funds, they have moderately high market risk. The value of the fund may change whenever the price of the concerned stock does. The constant changes in the stock market's volume and price, interest rates, currency rates, governmental policies, various economic developments, and tax regulations could all have an impact on stock values. This type of fund is less risky than mid-cap funds and sector/pure small-cap/theme-based funds because of their well-diversified portfolios. Moreover, if you invest over extended periods of time, the risks might average out. Before investing in the plan, investors may take into account their individual risk appetite.

Return Potential of the Quant ELSS Mutual Fund

You receive rewards from investing in Quant ELSS Mutual Funds in the form of recurring dividend payments and capital growth. Increases in the concerned stock prices over a specific investing horizon lead to capital appreciation. The three-year lock-in period enables the fund management to decide on asset allocation without worrying about frequent redemptions of funds. Long-term returns might be higher as a result of this comprehensive strategy. Historically, ELSS funds have been known to produce returns that range from 12% to 15% on average over a period longer than 5 years. However, Quant ELSS Mutual Funds do not guarantee guaranteed returns, and their performance may change over time. A regular investor can think about including a few mid-cap or small-cap in the total portfolio to increase returns.

Who Should Invest in the Quant ELSS Mutual Fund?

For investors with a higher tolerance for risk, Quant MF ELSS funds are the best option. Comparing these funds to other options through which one can save on taxes, their three-year lock-in term is the shortest. They are therefore perfect for long-term, tax-efficient wealth growth. To accomplish long-term objectives like funding a child's education, saving for retirement, or purchasing a home, investors may invest in Quant MF ELSS Funds. You must maintain your investment throughout the lock-in period in order to appreciate the full potential of these funds. This could also mean keeping only those surpluses in these accounts that you won't need anytime soon.

Things to Consider Before Investing in the Quant ELSS Mutual Fund

If one is purchasing a Quant ELSS Mutual Fund, the following factors need to be taken into account. The Quant ELSS Mutual Fund's performance is impacted by several variables.

• Ratio of Expense
• Composition of Portfolio
• Quant ELSS Mutual Fund Risk
• The Returns
• Horizon of Investment

Tax on Quant ELSS Mutual Fund

Under Section 80C of the Indian Income Tax Act, Indian investors who participate in Quant ELSS Mutual Fund schemes are eligible for a Rs. 1.50 lakh income tax deduction. However, this is not a cap. Additionally, sums above this can be put into the Quant ELSS Mutual Fund. It has the same benefits from capital gains taxes as other equity schemes with a focus on India (gains are taxed at a fixed rate of 10%*).