ICICI Prudential Long Term Equity Fund: Saving Tax Was Never this Easy!

It is an every earner’s dream that the month of March should vanish from the calender. But it looks that God is in no mood to fulfil their dreams. Every year the month of March brings along with it a lot of confusion and tension for the investors. Everyone is in search to find the best tax saving investment solutions. To rest your search, this write-up highlights the top elss fund, i.e., ICICI Prudential Long Term Equity Fund. The elss fund of ICICI Mutual Fund will not only reduce your tax liability but also provide good returns on your invested amount in the long run. Keep reading to know more.

Three W’s Related to ICICI Prudential Long Term Equity Fund

1. What: It is an open-ended scheme which is categorized under ELSS funds. An Equity Linked Savings Scheme is a smart investment option for saving tax under all the instruments available under Section 80C of Income Tax Law. By Investing in ICICI Prudential Long Term Equity Fund an investor can save up to Rs. 46,800* on an investment of Rs. 1.5 Lakh. Thus, reducing the tax liability of an investor. Furthermore, the scheme comes with a lock-in period of three months that further assists your invested amount to accumulate more profit by using the power of compounding provided by the MF market.
2. When: If you are planning for a Lump Sum investment then the right time would be when the market is bearish. In such scenario, you will be able to accumulate more units in lesser price. Moreover, for an SIP investment in ICICI Prudential Long Term Equity Fund, you don’t have to time the market and can start the SIP as early as possible.   
3. Who: If you are thinking that ICICI Pru Long Term Equity Fund is just a tax-saving option then you are highly mistaken. Along with tax benefits below are the other two advantages received by an investor:
4. Long Term Capital Gains: As said above, the scheme comes with a lock-in period of 3 years therefore, an investor can only redeem the scheme after 3 years. But in these 3 years, an investor can grasp good returns as the long term capital appreciation of this ELSS fund of ICICI MF lies in the range of 16% to 17%. Thus, on one side, investing in this fund saves your tax and on the other hand, provide good profit on your surplus cash.
5. Portfolio Diversification: As an investor, you must be knowing the importance of diversifying the portfolio for remarkable growth and including ICICI Prudential Long Term Equity Fund in your portfolio will add a flavour of diversification to your portfolio.    

ICICI Prudential Long Term Equity: Some Facts & Figures    

Fund Overview:

The scheme started serving the Indian investors from 19th August, 1999 and during the time span, the AUM of ICICI Pru Long Term Equity Fund has grown to Rs. 6,273 Crore (as on 30th April, 2019). The expense ratio (as on 30th April, 2019) of the ELSS fund of ICICI Mutual Fund is 2.16%. An investor willing to save himself from the tax burden can start the monthly SIP plan in this tax-saving at a minimum amount of Rs. 500. 

Investment Style: 

The fund follows growth style of investment and focuses predominantly on large cap stocks for stability followed by significant portion of assets allotted to the midcap and small cap stocks. ICICI Prudential Long Term Equity Fund invests in 50 stocks which are handpicked by the fund managers- Mr. Harish Bihani and Mr. Sankaran Naren.

Sector Allocation: 

The diversification of assets in the large number of sectors minimizes the risk associated with a particular sector. Currently, ICICI Prudential Long Term Equity Fund has allocated maximum asset allocation to the Finance Sector followed by other promising sectors like, energy, healthcare, FMCG, metals, etc.      

Reading so far, you must have gathered all the basic information about one of the best tax saving options available in India, i.e., ICICI Prudential Long Term Equity Fund. Moreover, for any further assistance reach out to the experts of MySIPonline or give a call on- 9660032889.