Planning your Taxes with ELSS? Choose a Predictable Approach to Navigate the High Valuations

We are in tax planning season. It is also a time when your employer asks you to submit investment proof to qualify for tax deductions. It is therefore a great time to look for a tax-saving mutual fund also known as an Equity Linked Savings Scheme (ELSS)that can help you create wealth while saving taxes.

What is ELSS?

ELSS is an equity-oriented mutual fund scheme that invests at least 80% of its total assets in equity and equity-related instruments and offers tax deduction u/s 80C of the Income Tax Act giving the combination of tax saving & wealth creation.

How ELSS compares over other tax saving options?

• Equity exposure for Long-Term Wealth Creation: Unlike traditional tax-saving instruments, ELSS provides exposure to equities, allowing investors to benefit from the potential upside of the stock market.

• Flexibility: Unlike other tax-saving options with long lock-in periods, ELSS lets you redeem your investments after just three years.

How can you navigate the current high valuations in Equity Markets?

While ELSS presents an enticing investment opportunity, you may be concerned about the current high valuations in the equity markets. To navigate the challenges of these elevated valuations, you can rely on a mutual fund that has a unique capability of delivering predictable outcomes despite the ups and downs of market cycles.

Quantum Mutual Fund stands out as an example of a fund house that aims for consistent performance regardless of market trends. We are not trying to compare ourselves with the index or beat the benchmarks, or compare with small cap or midcap, what we are giving you is predictable outcomes in an uncertain market (counter-cyclical).

Our Quantum Long Term Equity Value Fund has a proven 17 year track record of delivering on its estimated NAV based on 2 year forward upside potential. This is a testament to our stock picking ability and robust research process.

***The above graph shows the estimate of rebased GAV of Quantum Long Term Equity Value Fund – Direct Plan – Growth Option on the basis of Upside Potential of the portfolio (equal to the sum total of weight of each stock (multiplied by) the percentage difference between the current market price and the sell limits assigned to each stock in the portfolio by the in-house research teams). The performance returns are net of fees and expenses, and assuming reinvestment of all dividends and other earnings. Past performance may or may not be sustained in the future. The value axis for graph 2 has been plotted based on logarithmic scale of 2. Source: Internal Research, Bloomberg Finance L.P., As of Dec 30, 2023.

The upside potential graph compares estimated upside potential and actual returns, showcasing the predictability of its outcome over various market cycles. For more information, click here.

The Quantum ELSS Tax Saver Fund has a similar portfolio and value investing style as that of Quantum Long Term Equity Value Fund with a focus on liquidity, governance and valuation parameters to deliver predictable outcomes across market cycles.

Strike a balance between tax savings and wealth creation, ensuring a more predictable and rewarding investment journey with Quantum ELSS Tax Saver Fund.

Name of the Scheme	This product is suitable for investors who are seeking*	Riskometer of scheme
Quantum Long Term Equity Value Fund An Open Ended Equity Scheme following a Value Investment Strategy	• Long term capital appreciation • Invests primarily in equity and equity related securities of companies in S&P BSE 200 index	Investors understand that their principal will be at Very High Risk
Quantum ELSS Tax Saver Fund An Open Ended Equity Linked Saving Scheme with a Statutory Lock in of 3 years and Tax Benefit	• Long term capital appreciation • Invests primarily in equity and equity related securities of companies in S&P BSE 200 index and to save tax u/s 80 C of the Income Tax Act. Investments in this product are subject to lock in period of 3 years	Investors understand that their principal will be at Very High Risk

^*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Note: Name of Quantum Tax Saving Fund has been changed to Quantum ELSS Tax Saver Fund effective 1st December, 2023

For latest riskometer, investors may refer to the Monthly Portfolios disclosed on the website of the Fund www.QuantumAMC.com.

Above article is authored by Quantum.

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