You have invested in an equity scheme that invests in stocks, the NAV of the scheme goes up or down, depending on the performance of the stock market
20-Oct-2015 •Research Desk
I had invested ₹3,50,000 in Axis Long Term Equity Fund with three-year lock-in period. The NAV was ₹30.88 when I bought it on 27/01/2015. Since then NAV has been going up and down. I am not satisfied with this investment. I want to ask you if the trend in NAV remains the same, how much money will I get back, including my invested amount, on maturity.
- Arjun Ugwekar
Did you invest ₹3.5 lakh or ₹35,000? We are asking this because Axis Long Term Equity Fund is an Equity Linked Saving Scheme (ELSS) or tax planning mutual fund scheme that qualifies for tax deduction under Section 80C of the Income Tax. Tax payers can claim deduction of only up to ₹1.5 lakh in a year under Section 80C.
You have invested in an equity scheme that invests in stocks. The NAV of the scheme goes up or down, depending on the performance of the stock market. The scheme hasn't done well in the recent past because the stock market has been volatile lately. It is not possible to predict the returns you are likely to get after the lock-in period of three years, as it is impossible to predict the future course of the stock market.
However, Axis Long Term Equity Fund is a five-star scheme that has provided excellent returns in the past and it has the potential to offer you good returns.
You should invest in equity mutual fund schemes only if you have the appetite for high risk and the ability to withstand volatility in the market. You should also have an investment horizon of at least five years. This is because though equity has the potential to offer superior returns, it can be extremely volatile in the short term.