Stock Market

HDFC’s powerful tax saving scheme: 6200% returns given since launch, 16 lakhs made for 25 thousand

There is tax benefit on investing in Equity Linked Savings Scheme (ELSS) category of Mutual Funds. There are many such ELSS schemes in the market, which have given great returns to the investors over a long period of time.

HDFC Long Term Advantage Fund: While investing money, one thing should also be kept in mind that how we can save tax on our earnings. There are many such schemes in the market, where one gets the benefit of tax exemption on investment. These include government schemes and some equity schemes as well. There is tax benefit on investing in Equity Linked Savings Scheme (ELSS) category of Mutual Funds. There are many such ELSS schemes in the market, which have given great returns to the investors over a long period of time. One of these is HDFC Long Term Advantage Fund scheme of HDFC Mutual Fund.

tremendous benefits of compounding

By the way, the lock-in period in HDFC Long Term Advantage Fund is 3 years. But it has given tremendous returns to the investors in the long term. This fund was launched in January 2001. Since its launch, it has given 21% CAGR returns. Here in 20 years, investors’ money has been made about 63 times. In percentage terms, the fund has given 6200 per cent return in 20 years. That is, those who had invested 25 thousand rupees here, their money has become close to 16 lakh rupees in 20 years.

Fund performance

20 Year Return: 23%
Value of investment Rs 25 thousand: Rs 16 lakh
Value of Rs 2500 Monthly SIP: Rs 50 lakh

15 Year Return: 13%
Value of investment of Rs 25 thousand: Rs 1.60 lakh
Value of Rs 2500 Monthly SIP: Rs 16 lakh

10 Year Return: 16%
Value of investment of Rs 25 thousand: Rs 1.15 lakh
Value of Rs 2500 Monthly SIP: Rs 7.5 lakh

minimum investment

Minimum lump sum investment: Rs 500
Minimum SIP: Rs 500
Lock in period: 3 years

Fund details

Category: ELSS
Launch date: January 2, 2001
Returns Since Launch: 21.50% CAGR
Benchmark: S&P BSE Sensex TRI
Total Assets: 1366 Crore (September 30, 2021)
Expense Ratio: 2.23% (March 31, 2021)

In which stocks do you invest your money?

The top holdings of HDFC Long Term Advantage Fund are RIL, HDFC Bank, ICICI Bank, Infosys, HDFC, SBI, L&T, ITC, Redington India, Carborundum Universal, BPCL and Powerfrid.

Best and worst performance

The best performance of HDFC Long Term Advantage Fund was from 24 April 2003 to 23 April 2004. Meanwhile, the fund has given excellent returns of around 149 per cent. On the other hand, the fund performed the worst between January 14, 2008 and January 13, 2009. During this the return of the fund is -54.67 percent.

(source: value research)

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