Quantum ELSS Mutual Fund

Investment Objective of Quantum ELSS Mutual Fund

The investment objective of Quantum Tax Saving Fund is to generate long-term capital appreciation by investing in equity and equity-related securities of companies in the Indian markets, along with tax benefits under section 80C of the Income Tax Act, 1961. The fund follows a value investing approach and invests in fundamentally sound companies undervalued or overlooked by the market.

Risks Involved in Quantum ELSS Mutual Fund

ELSS mutual funds, including Quantum Tax Saving Fund, are equity-oriented mutual funds subject to market risks associated with stock market investments. The fund’s value may fluctuate due to changes in market conditions and other economic and political factors that affect the stock markets. Investors should consider the risks and benefits of investing in ELSS mutual funds.

Return Potential of Quantum ELSS Mutual Fund

The return potential of Quantum Tax Saving Fund is linked to the performance of the Indian equity markets, and hence it may vary over time. However, historically, ELSS mutual funds have delivered higher returns than traditional tax-saving investments such as PPF or NSC over the long term. The fund’s performance depends on the quality of the underlying stocks, the fund management team’s skill, and the prevailing market conditions. Investors should note that investing in equity markets involves risks, and the returns are not guaranteed.

Who Should Invest in a Quantum ELSS Mutual Fund?

Investors with a long-term investment horizon of at least three years and looking for tax-saving options under Section 80C of the Income Tax Act can consider investing in a Quantum ELSS Mutual Fund. ELSS funds have a lock-in period of three years and provide tax benefits up to Rs. 1.5 lakh per year under Section 80C of the Income Tax Act.

Things To Consider Before Investing in Quantum ELSS Mutual Fund

Before investing in a Quantum ELSS Mutual Fund, investors should consider their investment goals, risk tolerance, and investment horizon. Investors should also consider the fund’s past performance, expense ratio, portfolio diversification, and the fund manager’s track record. Additionally, investors should assess the fund’s investment strategy, asset allocation, and portfolio turnover ratio.

Tax on Quantum ELSS Mutual Fund

Quantum ELSS Mutual Fund is eligible for tax deductions under Section 80C of the Income Tax Act up to a maximum limit of Rs. 1.5 lakh per year. However, investors should note that ELSS funds’ long-term capital gains (LTCG) are taxed at 10% if the gains exceed Rs. 1 lakh in a financial year. Additionally, the dividend income earned from ELSS funds is taxable for investors.