I have invested in Axis Long Term Equity Fund for tax saving. This fund has performed really well in the last few years, even outperforming many non-ELSS peers. I was thinking of investing in this fund for non-tax saving reasons. While my investment horizon is 3-5 years, my concern is inability to switch mid-way if fund under performs. What are the other reasons for not investing in such a fund for non-tax saving reasons?
- Shashikant Kore
Equity Linked Savings Scheme not only serve the purpose of tax saving but are also efficient long-term investments and can substitute diversified equity funds. The lock in period of ELSS brings in the discipline to stay invested for long term. However, if you are looking to invest sizeable sums, it is good to own more than one scheme in your portfolio. You can choose any top rated multi-cap fund which will give you liquidity with returns.
Find the best diversified equity funds here.