This ELSS Fund has turned Rs 10K monthly SIP into Rs 51.61 lakh in 10 years

As prioritizing long-term investments becomes crucial and one also needs to consider other aspects such as taxation for overall gains over a period of time, individuals can consider parking their corpus in ELSS or equity linked savings schemes.

Equity Linked Savings Scheme (ELSS) as the name suggest are equity-linked schemes that help in tax-savings for investors under Section 80 C, allowing tax deduction up to Rs 1.5 lakh per annum. Also, these schemes carry a 3-year lock in that is investors need to continue with the fund for a minimum of 3 years. Nevertheless, investors  need to remain invested in such funds for a longer term to reaping equity-linked benefits.

Here, below we are discussing one such ELSS scheme that has compounded investors' corpus substantially over some time. 

Quant ELSS Tax Saver Fund

With a 5-star CRISIL rating, the fund has an AUM of Rs 9,360.89 crore, roughly over 4 per cent of investors’ funds in the category. The scheme was launched 11 years hence in 2013 and since then has given a return of 23.22 per cent. 

The fund’s performance is benchmarked against Nifty 500 TRI and it carries an expense ratio of 0.77 per cent as on April 30, 2024.

Further as it is an ELSS scheme, it comes with a 3-year lock in but no exit load charges.

Also, investors can bet on the scheme with a minimum investment of Rs 500 and minimum SIP investment of Rs 500.

Quant ELSS Tax Saver Fund’s portfolio

The scheme is inclined more towards the equity asset class with over 95 per cent investment in equities, that too largely in largecap of over 47 per cent. As on April 30, 2024, some of the fund’s top holdings have been in Reliance Industries, Jio Financial Services, Adani Power, GAIL (India), Hindalco Industries, TCS, Aurobindo Pharma and Britannia Industries among others.

Returns 

Suppose as a consistent investor you started your SIP of Rs 10,000 (monthly) in the fund ten years ago, so now your total investment of Rs 12 lakh will be worth Rs 52.05 lakh in 10 years offering you an annualised return of 27.63 per cent.

While, in case you had put a large corpus of say Rs 10 lakh in the fund ten years ago, it would have now grown to Rs 1.01 crore. Thus translating into a hefty profit of 915 per cent.