Investing in mutual funds can be a great way to grow your wealth over time, without having to devote all your time and energy to managing your portfolio. Mutual funds offer diverse investment options, allowing you to participate in different sectors and asset classes, and manage risk in the process.
One of the most popular types of mutual funds is equity-linked saving schemes (ELSS). ELSS mutual funds are tax-saving mutual funds, which offer tax exemption up to Rs.1.5 lakhs under Section 80C of the Income Tax Act. ELSS mutual funds have a lock-in period of three years, and they can be a great way to save on taxes while growing your wealth over time.
If you’re looking to invest in ELSS mutual funds, Bajaj Flexi Cap Fund can be a great option. Bajaj Flexi Cap Fund is an open-ended equity scheme, which invests in a diversified portfolio of stocks across market capitalizations. The fund aims to provide long-term capital appreciation and is managed by experienced fund managers with a proven track record.
Bajaj Flexi Cap Fund has a minimum investment amount of Rs.500, making it accessible for all types of investors. The fund has an expense ratio of 1.92%, which is lower than the industry average, making it a cost-effective option for investors.
Another great feature of Bajaj Flexi Cap Fund is that it has consistently outperformed its benchmark index, the Nifty 500, over the past few years. Its five-year average return rate is 26.82%, while the Nifty 500’s average return rate is 19.64%. This indicates that the fund has been successful in generating higher returns compared to its benchmark index.
That being said, it’s important to remember that mutual fund investments are subject to market risks, and past performance is not a guarantee of future returns. Before investing in any mutual fund, it’s crucial to consider your investment goals, risk tolerance, and investment horizon.
In conclusion, by investing in the right mutual funds, such as ELSS mutual funds like Bajaj Flexi Cap Fund, you can save on taxes and grow your wealth over the long-term. However, it’s important to gauge all the pros and cons of trading in the Indian financial market. By carefully considering your investment options and doing some research, you can make informed decisions and choose the best mutual funds for your portfolio.
