Under Section 80C of the Income-tax Act is the equity-linked savings scheme (ELSS), which has a track record of producing alpha returns over the long run and the shortest lock-in period. Additionally, ELSS Funds are diversified equity funds that invest in companies with a range of market capitalizations, including small-cap companies, mid-cap and large mid-cap companies.
ELSS is able to take advantage of ELSS’ potential to give the highest returns among any 80C option and save up to Rs 46,800 in yearly taxation. Here, HDFC Taxsaver Fund, as an illustration, has completed its 26 years of inception and hence made investors crorepati.
This fund was launched on March 31, 1996; the HDFC Taxsaver Fund Regular Plan – Growth Option has now been around for 26 years. As of March 31, 2022, the fund has produced SIP returns of 21.27 per cent, outpacing the performance of the NIFTY 500 TRI benchmark at 15.45 per cent and the NIFTY 50 additional benchmark at 14.35 per cent. A total investment of Rs 31.20 lakh achieved through the systematic monthly investment of Rs 10,000 made in HDFC TaxSaver since the fund’s inception would have given you an investment return of Rs 9.39 crore by March 31, 2022.
