How do I get more returns on my mutual funds?
Table of Contents
How do I get more returns on my mutual funds?
5 Ways to Boost Portfolio Returns With Mutual Funds
- Use No-Load Funds.
- Use Index Funds.
- Dollar-Cost Averaging.
- Buy Aggressive Funds.
- Asset Allocation.
- Bottom Line.
How much return will I get from ELSS?
Comparison of ELSS With Other Tax-Saving Instruments
| Investment | Returns | Lock-in Period |
|---|---|---|
| Public Provident Fund (PPF) | 7\% to 8\% | 15 years |
| National Savings Certificate | 7\% to 8\% | 5 years |
| National Pension System (NPS) | 8\% to 10\% | Till Retirement |
| ELSS Funds | 15\% to 18\% | 3 years |
What happens if you don’t withdraw ELSS after 3 years?
Due to this mandatory lock-in of 3 years, you can only redeem your ELSS investments either partially or in full after the completion of the lock-in period. If you have made your ELSS Mutual Fund investment via the lump sum route, i.e., at one go, all your units will be allotted on the same day.
Can ELSS give negative returns?
You can have good returns, but there are also chances of an investor making low to negative returns hence don’t invest in an ELSS if your time horizon is 3 years. Invest for the Long term….
| NIFTY 500 Index: 10-Year Rolling Return Range | |
|---|---|
| Maximum return | +26.6\% |
| Median return | +16.2\% |
Can I stay invested in ELSS after 3 years?
Yes, since the ELSS investment has completed five years, you can withdraw the first year’s investment and re-invest it. Long term capital gains tax would be applicable for capital gains of more than Rs 1 lakh in a financial year.
Can I invest in ELSS for 20 years?
Being a flexicap fund, ELSS funds get the flexibility to change their portfolio as per the economic cycle and market conditions. Hence, these funds have the potential to deliver higher returns in the long term. If you stay invested in an ELSS fund for 10-20 years you can easily expect a compounded return of over 10\%.