ELSS is an open-ended Equity Mutual Fund that not only is great for tax saving purposes but also creates a growth opportunity for your investment. These schemes are promoted by the Government of India to inculcate a habit of long-term investment among people. As is evident from the name, a significant portion of the fund in Equity Linked Savings Schemes is invested in equities or equity-related products. When you plan on making equity investments, it is a wise decision to determine the performance of the investment before investing, and this can be done by a tool referred to as an ELSS Calculator.

  1. What is an ELSS Calculator?
  2. ELSS Calculator: SIP
  3. ELSS Calculator: Lump Sum
  4. ELSS Calculator: Past Performance of SIP work?
  5. ELSS Calculator: Best ELSS: Tax Saving Funds Based on Five-Year Returns

1. What is an ELSS Calculator?

An ELSS calculator is a beneficial tool that plays a vital role in helping you make the right decisions with regards to choosing the best investment in an ELSS scheme. You will be able to evaluate how useful or not an investment will be. Depending on the type of scheme you choose, there are several ELSS Calculators that you can make use of.

2. ELSS Calculator: SIP

Systematic investing in mutual funds is an excellent way of avoiding any pitfalls of investing in equities. It also serves well with high returns. Small investments throughout regular intervals yield a reasonable return over the more extended period. SIP, with its disciplined format, has become a more popular mutual fund investment method than a one-time lump sum investment. It ensures a large investment corpus with tiny investments made periodically where professional managers manage the funds. If you are interested in investing in SIP, then it is crucial to understand and estimate the worth of your investment at the end of the tenure of your SIP. This number can be obtained through an ELSS SIP calculator that gives you the returns offered by your SIP, be it equity, debt, or hybrid funds. The ELSS SIP Calculator would require the investor to populate details such as the amount of the investment, the tenure of the SIP, the expected rate of returns, and so on. The calculator, based on these details, will generate an estimated rate of return for your investment.

For instance:

If you plan on investing Rs 5,000 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 (INR 5000*12 months). The maturity value of this SIP will be Rs 65,106. The ELSS SIP calculator is very much dependent on the input that is provided by the user. Therefore, it should be taken as an estimate and not as an absolute value. Factors such as inflation also come into play in the determination of the maturity value of the SIP, and there is no provision to factor tax benefits. This tool nonetheless is a vital input in getting an estimate for your investment.

3. ELSS Calculator: Lump Sum

Like an ELSS Calculator, a Lump Sum Calculator helps investors figure what a said amount of investment in an ELSS, given a certain period and a specific rate of interest, would result at maturity. The calculator will take into account the data mentioned above and calculates the expected value of your investment. A significant aspect to note is the lock-in period of your investment, which usually mandates a minimum of three years. The results you derive from the ELSS Lump Sum Calculator will not factor in the aspects of tax in the calculation.

For instance:

If you wish to invest a lump sum of Rs 50,000 for 60 months at an annualised interest rate of 15%, then the calculator will generate a value of Rs 1,00,568.

Again, it is essential to note that the calculator generates results based on the input provided alone and does not factor in the market conditions.

4. ELSS Calculator: Past Performance of SIP work?

The Past Performance SIP Calculator is an important tool in providing insights into the historical performance of your SIP. The calculator takes into account specific details such as:

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 at the time of maturity. Such an evaluation helps determine how a fund performs during different market cycles. The long-run performance is also a good insight into gauging where the fund might be heading in terms of prospects. Though it must be clarified that past performances are no guarantee to the returns in the future, they do, however, help by showing how the fund held up during adverse market conditions.

5. ELSS Calculator: Best ELSS: Tax Saving Funds Based on Five-Year Returns

An ELSS calculator will provide you with the estimation of how much your fund will be worth or how much you need to invest each month in reaching a specific target. The past performance calculator will shed light on how the fund has fared historically, but 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.