Is Axis Long Term Equity Fund a good fund? Any other other suggestion for ELSS funds?Asked
ELSS is a dedicated mutual fund scheme that allows investors to save tax. It also provides an opportunity for long term capital appreciation. An ELSS fund manager invests in diversified portfolio, predominantly consisting of equity and equity related instruments that carry high-risk and have the potential to deliver high-returns.
Key points for Axis Long Term Equity Fund are:
If you are already invested in this scheme, you may consider switching to a better performing scheme. Some examples of popular ELSS for 2017:
Axis Long Term Equity Fund is a scheme which is focused on saving tax. It claims to save tax up to Rs. 46,350 per year by investing up to Rs.1.5 lakhs per year according to section 80C of the Income Tax Act, 1961. It is an Equity Linked Saving Scheme (ELSS) with a 3-year lock-in period. The money is invested in equity markets.
This scheme is focused on long term opportunities rather than short term gains. This provides more stability and chances of greater returns vis-a-vis the other schemes. This fund is targeting companies with sustainable growth objectives and firms wanting to create wealth in 3-4 years. The lock-in period facilitates that. It helps to avoid short run volatility. Also, the fund manager is working on a bottom-up basis. He is judging all the stocks individually, only on their prospects, and not trying to worry about the overall market direction or what the market benchmarks are doing. This has enabled the fund to create enormous value for investors.
This fund offers the lowest lock-in period among other tax saving instruments available in the market. It is suitable for people wanting to invest for at least 3 to 5 years. If you are seeking capital appreciation over long term, this is the fund for you. Also, if you are interested in a diversified portfolio mainly consisting of equity instruments, this is a good option.
The fund manager, Mr. Jinesh Gopani, has been managing this fund since April 2011 and it has performed well continuously. Thus, it seems that your money is in safe hands.