Escorts Tax Plan is managed by Archit Singhal. The scheme aims to generate capital appreciation by investing predominantly in equity shares with growth potential. The secondary objective is to give dividend and other income. New investors can skip this fund safely. If you have already invested, exit now to invest in a better performing fund.
Escorts Tax Plan is a mid cap fund. About 29.77% of the fund’s money is allocated to stocks of large sized companies, around 40.28% to stocks of mid-sized companies and close to 29.95% to stocks of small cap companies. Mid cap companies tend to give kicker returns but large cap companies are not avoided as they tend to be stable compared to mid cap and small cap companies.
- Saving on tax outgo
- Creating wealth
- Lifestyle needs
- Child's education
- Child's marriage
- Planning for retirement
- Home Purchase
If you had invested Rs 1 lakh when the fund was launched in April 2000, your value of investments would be around Rs 3.32 lakhs. If you had invested Rs 1 lakh for 5 years, your value of investments would sadly be dropped to Rs 59568. The performance has not been better or similar to other mutual funds.
Assume you had invested Rs 10,000 every month in Escorts Tax Plan through SIP for 5 years, today you would just have around Rs 5.16 lakhs.
A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.
No exit load applies for units withdrawn from this scheme. Expense ratio of Escorts Tax Plan is 2.50%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.
The returns in a mutual fund are absolutely tax free, provided you did not withdraw within 1 year. Escorts Tax Plan qualifies for sec 80C ELSS benefits, which means you can invest up to Rs 1 lakh a year in this fund and deduct the amount from your gross total income for computing income tax.