IDFC Tax Advantage (ELSS) Fund-Regular Plan-Growth: An SIP ELSS Fund with an Impressive Performance

IDFC Tax Advantage (ELSS) Fund-Regular Plan-Growth: An SIP ELSS Fund with an Impressive Performance

Feb 27, 2018

IDFC Tax Advantage (ELSS) Fund-Regular Plan-Growth is an Equity Linked Savings Scheme, abbreviated as ELSS. The primary aim of this scheme is to ensure capital growth over a long-term horizon. This, it aims to achieve, by making the investment in a diversified equity portfolio. The scheme also offers tax benefits under section 80 C of the Income Tax Act, 1961.

What are the most important features of this fund?

  • This scheme is an open-ended equity linked savings scheme.
  • It comes with a lock in period of 3 years.
  • The scheme came into existence on the 26th of December, 2008.
  • The name of the fund manager is Daylynn Pinto.
  • The benchmark for the scheme is S&P BSE 200
  • There is no exit load on the scheme.
  • Monthly SIP investment is possible. Payment can be made on any date except the 29th, 30th and 31st of a month.
  • Apart from growth, dividend option is also available for interested investors.
  • If you want to invest in this scheme, you may start with a minimum investment amount of INR 500.
  • The investment in this fund happens predominantly in equity and equity linked securities.

This product is ideal for investors who are -

  • Looking to make wealth in the long run.
  • Looking to capitalise on the equity market.

Now let’s have a look at the performance table of the scheme below. In the first year of the scheme’s advent, it offered a return of 52.99% which was way higher than the total market average that year i.e. 37.97%, and the S&P BSE 200 benchmark return of 31.92%. In the third year of the scheme’s launch, it gave a return of 18.04%. Although the figures saw a dip, they were still comparatively higher than the benchmark return i.e. 10.14% and the return offered by other similar ELSS funds in the market, which is 13.81%. In the scheme’s fifth year of launch, it offered a return of 21.63%. The benchmark that year was 13.51% and the total market average was 18.57%. Now, let’s come to how the scheme performed since its launch. Well, the overall since-launch return offered by the scheme is 22.03% which is pretty impressive considering the fact that other comparable funds in the market marked only a return of 17.14% since launch, and the benchmark stood at 14.11%.

Source: Swaraj Wealth Research

Now, you can see below the SIP returns offered by the scheme. For this, let’s assume you made an investment in this fund on the 3rd of February 2017. The investment was made through the SIP route, and a sum of INR 10000 was being invested monthly. By the 4th of January, 2018, you would have received a return percentage of 45.32% against the 24.23% benchmark. Although the total amount invested would be exactly INR 120000, you would earn a profit of INR 23466 against the benchmark of INR 12913. Not all schemes offer such an impressive return.

Source: Swaraj Wealth Research

Now, also have a look at the growth curve of the scheme above. As on 4th of January, 2018, the growth offered by the scheme was 143465.00.

From all the statistical data above, it may be inferred that IDFC Tax Advantage (ELSS) Fund-Regular Plan-Growth is one of the best SIP ELSS funds. But whether or not it’s suitable for your financial needs is something extremely important to know, and you should seek professional financial advice for this.

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