L&T Tax Advantage Fund: A Tax Saving Growth Plan
Launched on February 27, 2006, L&T Tax Advantage growth Fund is an Equity Linked Saving Scheme of L&T Mutual Fund, which is focused on providing tax saving along with capital appreciation. Being a growth-oriented strategy it is aimed at providing high worth to invested capital along with saving taxes under Section 80C of Income Tax Act. Investors are given the option to invest in l&T tax advantage fund growth plan either by opting for SIP investment plans online, or by making a lumpsum payment at once. Here we have provided an overview of this plan to help the investors gain substantial knowledge about the same prior to investing.
L&T Tax Advantage Growth Fund: Investment Details
It is an open-ended equity linked savings scheme or ELSS, which primarily aims to generate long-term capital growth from a portfolio which is highly diversified consisting of securities which are either equity stocks or equity-related securities. L&t tax advantage fund is best suited to the investors who are seeking long-term capital growth and want to invest in the equity securities. The normal allocation of the assets of L&t tax advantage g scheme is based on the following format:
- Minimum 80% and maximum 100% investments in equities.
- The minimum amount to initiate l&t tax advantage investment fund amounts to Rs.500 only.
- Minimum 0% and maximum 20% investment in the cash or call instruments.
Performance of L&T Tax Advantage Fund G
L&T tax advantage growth plan is ranked ‘Third’ in the ELSS category as per CRISIL rating for the quarter which ended in September 2016. The absolute annual returns by this scheme in the past has been reached up to 44.5 percent in the year 2014. The annualised returns of this scheme for three- and five-year investments are 19.3 and 16.9 percent respectively. One can compute the returns prior to investing as well by using SIP returns calculator that will generate the accurate returns for invested capital at a future date. The past l&t tax advantage fund growth performance until now is appreciable and it has always been higher than the benchmark and its category. Its returns since launch are 14.08% which are again an appreciable record.
L&T Tax Advantage Growth Fund: Portfolio Analysis
The asset size of L&T advantage fund scheme amounts to Rs.1,753 crore as on December 31, 2017. Moreover, the average market capitalisation is worth Rs.30,678.23 crore. These values remark the overall market possession of l&t tax advantage fund growth plan until now. Furthermore, the allocation of the funds in different sectors provides the exact potential of the plan to generate the expected returns.
Sector allocation graph of L&T advantage fund growth depicts that majority of the invested capital is invested in the financial, construction, FMCG, technology, services, and energy industries. The top holdings which are the corporates responsible for producing returns for the investors, include:
- HDFC Bank
- ICICI Bank
- Larsen & Toubro
- Bayer CropScience
Benefits of L&T Tax Advantage Growth Fund plan
- Twin benefits of tax saving and smart investment for the future.
- By selecting SIP, investments in top L&T tax advantage sip schemes can be planned as per the monthly budget.
- L&T tax advantage fund growth follows a ‘Go anywhere’ approach, wherein there is no specific cap, sector or style undertaken and the funds are highly diversified in the best opportunity in order to maximise the profits and minimise risk.
- Three years lock-in period which is mandatory to avail the tax benefit under Section 80C.
- The fund is based on 360-degree research approach according to which the every stock selection is handpicked and underpinned by a first-hand selection.
NAV of L&T Tax Advantage Growth Fund amounted to Rs.41.917 as on January 12, 2017. NAV is helpful for the current investors to evaluate their net worth of invested capital in this plan. On the flip side, the newbie investors can compute the total number of units they will be allotted for this plan. S&P BSE 200 is the benchmark against which its performance is measured. The l&t tax advantage growth scheme is designed after doing immense research by the fund managers of L&T MF.
With investments of around 96.31% of the total assets in the equity securities, the scheme is aimed to generate capital growth. The corporates in which the money has been invested are among the best performing entities and they have the potential to generate regular returns. Furthermore, with 3.62% of the total assets being invested in the cash or call instruments, l&T advantage fund plan has diversified the money to ensure regular returns. It is offering the dual benefits of tax savings and capital with a diversified portfolio and this is the reason the l&T tax saving scheme is among the must-have strategies in the industry.
We recommend L&T Tax Advantage Growth Fund to the investors as we have analysed the scheme and are convinced that it can help every investor in creating huge wealth along with tax savings. If you further need assistance in making investment in this mutual fund investment plan online, you must avail our free of cost advisory services at MySIPonline and engage your money in top 5 tax saver mutual funds