Mutual fund calculator: Monthly SIP of ₹10,000 turns to ₹21 lakh in 7 years

Financial advisors tend to favor long-term investments in equities mutual funds of at least five years. By investing in a diverse group of companies from various industries, equity mutual funds aid in risk reduction. By making long-term investments, one may get market-beating returns with minimal risk. ELSS funds are the only investment choice available on the financial market with a 3-year lock-in period and section 80C tax advantages. Investments in ELSS funds are frequently thought of as a way to build long-term wealth and qualify for tax deductions of up to 1.5 lakh annually. Here is an example of an ELSS fund that over the course of seven years, turned into a monthly SIP of 10,000 into 21 lakh, keeping in mind the long-term investment strategy in equity mutual funds.

Quant Tax Plan – Direct Plan

Quant Tax Plan – Direct Plan was launched on 01-January-2013 and currently, the fund holds a 5-star rating from Value Research. Even the fund has been ranked no.1 by CRISIL. Because it is an ELSS fund, it has a 3-year lock-in period and no exit load. A monthly SIP of 10,000 invested into the fund three years ago would have grown to almost 6.44 lakh as a result of the fund’s trailing return of 40.94% during the previous three years.

A monthly SIP of 10,000 made in this fund 5 years ago would have grown to 12.80 lakh as a result of the fund’s trailing return of 22.49 percent over the previous 5 years. A monthly SIP of 10,000 started in this fund 7 years ago would now have grown to over 21.35 lakh according to the fund’s trailing return of 22.13 percent over the past 7 years.

Key takeaways of Quant Tax Plan – Direct Plan

As of June 30, 2022, Quant Tax Plan Direct-Growth has 1370.2 crores in assets under management (AUM), and as of August 5, 2022, the fund’s NAV was 245.92. The fund’s 0.57 percent expense ratio is lower than that of the majority of other products in the same category. Quant Tax Plan Direct-Growth returns for the past year have been 10.44 percent, and since its inception, the fund has generated 21.14% return on average annually.

Services, Financial, Consumer Staples, Healthcare, and Energy industries make up the fund’s sector allocation strategy. State Bank of India, ITC, ICICI, Patanjali Foods, and Adani Enterprises Ltd. are the top 5 holdings of the fund. 99.34% of the fund’s assets are invested in Indian companies, of which 64.07% are large-cap stocks, 22.69% are mid-cap stocks, and 12.58% are small-cap stocks. The fund’s sharpe ratio of 1.24, which is higher than the category average of 0.75, shows that it has better risk-adjusted performance in the category.

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