ELSS is a variable income product, which helps the investors obtain better long-term returns compared to other alternatives along with tax-savings option which greatly reduces the tax burden from the investments.
Given these factors, it makes sense for conservative investors to opt for ELSS plans. Among several available plans, investors may also consider the Invesco India Tax Plan, which is a popular scheme due to its multi-cap strategy.
The fund managers Amit Ganatra and Dhimant Kothari maintain a 60/40 ratio in large limits and other actions. This multi-cap approach has been a key factor in the constant performance of the fund across all market conditions. The Invesco India Tax Plan Fund has distributed its assets as 96.67% in Indian equities, of which 61.99% is in large-cap companies, 17.61% in mid-cap stocks and the rest 6.07% is in small caps. The Invesco India Tax Plan was launched on 29th December 2006.
To consider a tax saving mutual fund, it is important to not just keep an eye on its section 80C applicability but also at long-term returns which will grow your investment corpus.
In the past one year, three-year and five-year periods, the scheme has given 8%, 12% and 9% returns while its benchmark BSE 200 index has given 10%, 13% and 8% returns in the same period, respectively. In general, ELSS schemes on an average have given 5%, 10% and 15% returns in the past one-year, three-year and five-year periods respectively.
In the last six months, fund managers have increased their exposure to well-established companies that have been attractive for two reasons: a solid business model (demand in the industry, high cash flow) and a decline in the markets. These companies include the likes of Bajaj Finance and Zee Entertainment Enterprises.
|Fund||S&P BSE 200 TRI||Nifty 50 TRI|
The expense ratio is 2.23% as declared on 30-Nov-2019 whereas the average is 2.12% as of 30th November 2019.
The AUM of this Invesco India Tax Plan is Rs. 976.92 crores as of 30th November 2019. Yearwise total AUM of Invesco India Tax Plan from 2014 are as follows:
Invesco India Tax Plan
|Year||Total AUM (Rs. Crores)|
|1 Year||2 Year||3 Year||5 Year|
As seen in the above comparison, the 1-year return on Invesco India Tax Plan is 10% whereas the average return of the category is 6.91%. For a 5-year investment horizon, the fund gives you a 10% return on investment whereas the average return of the category is 9%. The return on benchmark indices S&P BSE 200 for 5 years is 9% and for NIFTY 50 is 8%. Invesco India Tax Plan gives the highest return on 5-year investment as compared to the category average, NIFTY 50 and S&P BSE 200. This makes it a good choice for investors looking for stable returns along with tax savings.
The SIP performance of Invesco India Tax Plan Fund has been great too.
SIP Performance (₹1000 invested every month)
|1 Year||3 Year||5 Year||10 Year|
|7.19 %||14.22 %||29.13 %||108.51 %|
|13.52 %||8.82 %||10.16 %||14.06 %|
The absolute return on Invesco India Tax Plan for 1 year is 7.19%. For 10 years, it is 108.51%. In other words, if you invested for 10 years in Invesco India Tax Plan, your money would have been more than doubled.