Why Consider Nippon's ELSS Funds for Tax Saving Investments?

 With the end of the financial year approaching, it is time to start thinking about tax-saving investments. One great option to consider is ELSS mutual funds (Equity Linked Saving Scheme). Nippon India's ELSS funds are some of the top-performing funds in this category, making them an attractive choice for investors looking to save tax while also earning good returns.



Here are some key reasons why Nippon's ELSS funds like Nippon mutual fund deserve consideration:

Strong track record - Nippon's ELSS funds have consistently delivered healthy returns over the years. For instance, the Nippon India Tax Saver Fund has provided annualized returns of around 8.98% over the last 5 years. This showcases the fund's ability to generate inflation-beating returns.

High-quality portfolio - The fund manager invests in a carefully selected portfolio of companies with strong fundamentals and growth prospects. The focus is on picking stocks across market caps that can deliver sustained earnings growth. This approach has helped create a high-quality portfolio.

Tax savings - A key benefit of ELSS funds is that investments up to Rs 1.5 lakh are eligible for tax deduction under Section 80C. So investing in Nippon's ELSS can help reduce your tax outgo. The 3-year lock-in also helps inculcate investing discipline.

Low charges - Nippon's ELSS funds levy very modest expense ratios, ensuring a larger portion of your money is invested. This keeps costs low and improves overall returns.

SIP option - You can invest through SIPs or lump sums. The SIP route is great for building a corpus through regular investments. It also averages your purchase cost.

Professional management - Your money is managed by an experienced and qualified fund management team. They have the expertise to navigate different market conditions successfully.

High liquidity - ELSS funds offer reasonable liquidity despite the 3-year lock-in. Redemptions are allowed after the initial period, making the funds more flexible than traditional tax savers like PPF.

So in summary, Nippon's ELSS funds offer an attractive avenue for tax saving with the potential for wealth creation through equity exposure. The funds have delivered healthy long-term growth, and are competitively priced and professionally managed. For investors seeking tax efficiency coupled with the benefits of equities, Nippon's ELSS funds are definitely worth considering this financial year.

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