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Tuesday, December 18, 2018

Shriram Long Term Equity Fund For Tax Planning : NFO

Shriram Long Term Equity Fund For Tax Planning  : NFO


Shriram Long Term Equity Fund (SLTEF) is an open-ended Equity Linked Saving Scheme (ELSS) from the stable of Shriram Mutual Fund.

An ELSS, also known as a tax saving mutual fund, are diversified equity funds that offer a tax benefit under Section 80C (up to Rs 1.5 lakh).  A distinguishing feature about ELSS is that they are subject to a compulsory lock-in period of 3 years, but the minimum application amount in most of them is as little as Rs 500, with no upper limit.

SLTEF is one such tax saving scheme that offers a dual benefit of tax rebate and capital appreciation from a diversified portfolio of predominant investments made in equity and equity-related securities. SLTEF will invest more than 80% of its total assets in equity and equity-related securities. So, from a risk-return standpoint, SLTEF is a high risk-high return investment proposition.

In the long-term, if you intend to create wealth, then a tax saving fund such as SLTEF could potentially clock luring inflation-adjusted returns if the portfolio construction is done astutely and risks are managed well. But remember, there is high risk. Hence, before you invest recognise your risk profile and make sure you have an investment time horizon of at least 3 years.

You can do either lump sum investments or investments through a Systematic Investment Plan (SIP). In the case of the latter, each instalment has a 3-year lock-in period. Both individuals and HUFs are entitled to invest in ELSS.

Shriram Long Term Equity Fund For Tax Planning : NFO Reviewed by S. Chitra on December 18, 2018 Rating: 5 Shriram Long Term Equity Fund For Tax Planning  : NFO Shriram Long Term Equity Fund (SLTEF) is an open-ended Equity Linked Saving Scheme ...

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