Mutual Fund SIP is a good investment tool to build a good fund in the long term.
JM Tax Gain Fund-Direct Plan has given 12% annualized return to its investors in the last five years.
This ELSS fund is heavily invested in large cap stocks.
New Delhi. Systematic Investment Plan (SIP) is a boon for investors who do not have a lot of savings but want to have a large corpus in the long term. Mutual Fund SIP is very useful for such people. Those who have started their career recently and want to invest for at least 30 years. Yes, if we choose SIP wisely then it can give good returns in medium term also. Equity Linked Saving Scheme-ELSS Mutual Fund JM Tax Gain Fund-Direct Plan is a good example of this. This ELSS Mutual Fund has given excellent returns to the investors.
JM Tax Gain Fund-Direct Plan has given 12% annualized return to its investors in the last five years. At the same time, the category return has been only 10.94% annually. The fund has given 27.44 per cent annualized and 62.45 per cent absolute returns in the last two years. If we talk about the last three years, JM Tax Gain Fund-Direct Plan has given an annual return of 16 per cent, while its absolute return has been 56.20 per cent.
above category return
According to a report by Livemint.com, the annual return of this ELSS fund has been 12 per cent in the last five years. This fund was started on 2 January 2013. The fund has given 15.45 per cent annual return since its inception. At the same time, the category return during this period has been 14.15 percent. In this way, it has given an annual return of 1.30 percent more than its category.
If an investor had started a monthly SIP of Rs 10,000 in JM Tax Gain Fund-Direct plan 3 years ago, then today his corpus has become Rs 4.57 lakh. Similarly, in this ELSS plan, if an investor started SIP of Rs 10,000 five years ago, today his investment has taken the form of Rs 8.48 lakh. If an investor had started a monthly SIP of Rs 10,000 in this fund seven years ago, then today he is getting Rs 13.90 lakh.
Invest more in large cap stocks
JMA Tax Gain Fund Direct Plan has a strong exposure to the domestic equity market. Out of this also, 58.82 percent of the fund allocation has been done in large cap stocks and 22.58 percent allocation has been done in mid cap stocks. Mirae Asset Tax Saver Fund – Direct Plan, DSP Tax Saver Fund – Direct Plan, Canara Robeco Equity Tax Saver Fund – Direct Plan and IDFC Tax Advantage (ELSS) Fund – Direct Plan have also given good returns to investors in the recent years.