As the name suggests, most of the assets in an Equity Linked Savings Scheme (ELSS) is invested in equities or equity-related products. If you wish to invest in equities, research on its past and potential performance is in order. Our ELSS Calculator can aid you in that.
What is an ELSS Calculator?
ELSS is the only tax-saving mutual fund there is under Section 80C of the Income Tax Act. It offers the dual benefit of tax saving as well as long-term wealth creation.
An ELSS calculator is an extremely helpful tool that plays an important role in helping you make the right investment decision. The calculations help you evaluate how effective or not an investment will be. Depending on the type of scheme you choose, there are a number of ELSS Calculators that you can make use of.
ELSS Calculator: SIP
Systematic Investing in mutual funds is a great way to avoid market pitfalls when investing in equities. Small investments over the course of regular intervals yield a good return over a long period. In fact, SIP has become one of the more popular choices of investment methods due to its affordability and discipline. Use our ELSS SIP Calculator to know how small amounts of money accumulates into a large corpus over time.
It is crucial to understand what your investment will be worth at the end of the tenure of your SIP. Use ELSS SIP calculator to know the would-be results – be it equity, debt or hybrid funds. You just need to enter details like the investment amount, the SIP tenure, the expected rate of returns etc. The calculator, based on these details, will generate an estimated rate of return for your investment.
ELSS SIP Calculator Explained With An Example
Say, you invest Rs. 5000 a month for 12 months with an expected rate of return of 15%. The ELSS SIP Calculator will be able to calculate the maturity value of your SIP. Your cumulative investment will be worth Rs. 60,000 (Rs. 5000*12 months). Then, the maturity value of this SIP will be Rs. 65106.The ELSS SIP calculator is dependent on the input you provide. So, do not consider the result as an absolute value. Factors like inflation and taxation also come into play when you determine the maturity value of the SIP. Nonetheless, this tool is vital in making you understand your investment.
ELSS Calculator: Lump Sum
The Lump Sum ELSS Calculator helps investors figure out the resultant corpus after investing a one-time amount in an ELSS. The calculator takes interest, investment amount and tenure into account to give you the expected value of your investment. Remember, there is mandatory lock-in period of three years. The results from this Lump Sum Calculator does not factor inflation and taxation.
Lump Sum Calculator With An Example
If you wish to invest a lump sum amount of Rs. 50,000 for 60 months at an annualized interest rate of 15%, the calculator will generate a value of Rs. 1,00,568.
ELSS Calculator: Past Performance of SIP work?
The Past Performance SIP Calculator is a significant tool in providing insights on the historical performance of your SIP. The calculator takes into account certain details like:
i. SIP investment amount
ii. Starting month and year of the SIP
iii. Maturity month and year of the SIP
iv. Valuation date
v. Name of the Asset Management Company
With the above details, an ELSS SIP Past Performance Calculator will generate an estimate of how much your SIP investment will be worth when it matures. The long run performance also gives insights into where the fund might be heading in terms of future prospects. Though past performances are no guarantee to the future returns, they show the fund’s sustainability and resilience to different market conditions.
ELSS Calculator : Best ELSS : Tax Saving Funds Based on 5 Year Returns
The following table enlists some of the top Equity Linked Savings Schemes, based on their performance over the course of 5 years.
The returns are based as on June 7, 2018.
An ELSS calculator will show you how much you need to invest each month to reach a certain target. The past performance calculator will shed light on how the fund has fared historically. However, neither of the calculators can be taken to be absolute in their value as the market conditions are not factored in the calculation. It is merely for the investor to gather insights to make investment decisions.
The list provided here has been compiled based on market research and is not endorsed by Clear Tax Invest in any way. Users are recommended to seek financial guidance before making any investments.