Top Index Fund vs Top ELSS fund in 5 Years: Which has given higher return on Rs 20,000 monthly SIP; get calculations
Top Index Fund vs Top ELSS fund in 5 Years: On the basis of annualised SIP returns in 5 years, the top index fund is Bandhan Nifty 50 index fund, while Quant ELSS Tax Saver Fund is the top ELSS SIP mutual fund in the same time frame.
Top Index Fund vs Top ELSS fund in 5 Years: Index funds are those mutual funds that track an index. They may track indices such as Nifty 50, Nifty Next 50, BSE 500, etc. Since they follow an index, they have the same composition of the stocks, which is in the index they are following. So, if some companies are dropped out of the index and new companies replace them, the fund manager of the index fund also changes the stocks based on the new composition. Index funds are passive funds and have a low expense ratio. Index funds are considered good for beginners who don't have much experience with mutual funds.
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ELSS mutual funds
Equity linked mutual funds, on the other hand, are known as tax saver funds, where one needs to invest money for at least 3 years. Investment in ELSS qualifies for tax benefits under Section 80C of the Income Tax Act, 1961.
ELSS mutual funds
Most ELSS mutual funds are large cap stock-heavy, so they provide stability in the long term. With the dual benefits of tax savings, a lot of taxpayers following the old tax regime opt to invest in ELSS mutual funds.
Which is the top index SIP mutual fund in 5 years?
On the basis of annualised SIP returns in 5 years, the top index fund is Bandhan Nifty 50 index fund.
Which is the top ELSS SIP mutual fund in 5 years?
The top ELSS mutual fund on the basis of SIP returns is Quant ELSS Tax Saver Fund.
Bandhan Nifty 50 Index Fund Direct Plan-Growth
The fund has given 21.19 per cent annualised SIP returns in the 5-year period. It has assets under management (AUM) of Rs 1,444 crore, while its net asset value (NAV) is Rs 55.53.
Bandhan Nifty 50 Index Fund Direct Plan-Growth
Benchmarked against Nifty 50 Total Return, the fund has given 14.23 per cent annualised returns (CAGR) since its inception in January 2013. At a 0.10 per cent expense ratio, the fund has Rs 500 as the minimum SIP investment and Rs 1,000 as the minimum lump sum investment.
Quant ELSS Tax Saver Fund Direct-Growth
The fund has given 38.41 per cent annualised SIP returns in the 5-year period. It has AUM of Rs 11,065 crore, while its NAV is Rs 451.5946. Benchmarked against NIFTY 500 TRI, the fund has given 23.33 per cent annualised returns since its inception in January 2013.
Quant ELSS Tax Saver Fund Direct-Growth
At a 0.71 per cent expense ratio, the fund has Rs 500 as the minimum SIP investment and Rs 1,000 as the minimum lump sum investment.
Top index fund vs top ELSS fund: Which has given higher return on Rs 20,000 monthly SIP investment for 5 years?
A Rs 20,000 monthly SIP in Bandhan Nifty 50 Index Fund Direct Plan-Growth, or Rs 12 lakh investment, in 5 years, has given Rs 20.32 lakh in total.
Top index fund vs top ELSS fund: Which has given higher return on Rs 20,000 monthly SIP investment for 5 years?
A Rs 20,000 monthly SIP in Quant ELSS Tax Saver Fund Direct-Growth has turned into Rs 30.54 lakh in total in 5 years.