There are many banks out there and almost all of them provide mutual funds to people. Out of all, Axis Bank is one of the most popular banks.
The third largest private sector bank of India, Axis Bank is known for offering a comprehensive suite of financial products. Axis Bank head office is established in Mumbai, Maharashtra. In total, it has over 3,703 branches with 13,814 ATMs and 9 international offices. Over 55,000 people work with this bank and it has a market capitalization of about ₹1.31 trillion. This bank sells its financial services to retail businesses, large and mid-size corporates, and SMEs.
Like every bank, there are many mutual fund schemes provided by this bank, one of them is Axis Long term equity Fund.
Equity fund schemes focus on companies with different market capitalization. And Axis Long Term Equity Fund is one of the most popular schemes in this category. It has grown larger than its competitors.
Axis Long Term Equity Fund is an open-ended ELSS fund. Meaning that in addition to its incredible performance, it can also help you save on tax under Section 80C. The scheme creates wealth in the long run by investing in all types of companies. These have a potential for growth and have a suitable business model. It also comes with a lock-in period of three years, which means that an investor cannot sell the particular scheme during this period. They can use this scheme to build their retirement corpus.
An investor can invest in this scheme whenever they like. By the time, they can increase their investments to develop a decent amount for their retirement. Investing a small amount on a regular basis for a long period of time is the finest way to save a large amount. It will help you to multiply your wealth in 20-25 years.
Benefits of Axis Long Term Equity Fund:
•An expanded equity linked saving scheme (ELSS) invests in both, large caps and midcaps.
•To use the scheme as a tax saving instrument, it is necessary to invest for 3 years minimum.
•3-year lock-in has its own advantage. Here the money doesn’t get affected by market ups and downs. It also stays invested.
•It helps in saving tax and building wealth.
•It may let you save up to Rs. 46,800* in taxes and to claim up to Rs. 1.5 lakhs.
•It also works as an asset class, where it has the power to overcome inflation and generate long term wealth.
•It focuses on a few Long-term goals like retirement, children’s education, and their future, or any other long term wealth creation plan.
Tax benefits of Axis Long Term Equity Fund:
Axis Long Term Equity Fund is known as Tax Saver Fund. It is an equity-linked savings scheme (ELSS) which gives the advantage to save up to Rs. 1.5 lakh annually. under section 80C, this scheme has a lock-in period of 3 years.. The important applicable tax on a long term basis is as low as 10%, but it is only applicable when the equities exceed more than Rs. 1 lakh during the financial year.
Who can invest in Axis Long Term Equity Fund?
•Someone who is seeking capital appreciation and generating income for the long term.
•Investing in the expanded portfolio mainly consisting of equity and some related instruments.
To generate revenue or long-term capital appreciation from an expanded portfolio of predominantly equity and its securities. Though there is no assurance that the investment objectives of this particular scheme will be achieved or not.