L&T Tax Advantage Fund Direct-Growth

About L&T Tax Advantage Fund

With the investment objective of generating long-term capital growth from a diversified portfolio of predominantly equity and equity related securities, L&T Tax Advantage Fund is an open-ended equity linked savings scheme with a statutory lock-in period of 3 years. The fund has invested around 98.51% in Indian stocks, out of which 54.14% is invested in large cap, 25.33 in mid cap stocks and the remaining 10.89 in small cap stocks.

Mr. Soumendra Nath Lahiri has been managing the fund since January 2013. He is a graduate in B.Tech and holds a degree in PGDM from IIM Bangalore. With over 7 years of experience with L&T AMC, Mr. S. N. Lahiri has delivered remarkable returns with his strength lying in the risk management of portfolios.

Who Should Invest?

• If you are an investor with a smaller risk appetite, you may consider investing in this fund
• This Equity Linked Savings Scheme is considered ideal for investors looking for additional tax benefits
• Investors looking to invest predominantly in equity and equity related securities
• This scheme is particularly suitable for investors seeking long term capital growth along with with an investment horizon of a minimum of 3 years
• It is also suggested that you take a look at the CRISIL rating of the fund while making your investment decision, in order to get an idea about the overall performance of the fund over the years, based on its historical return data and portfolio attributes

What You Could Gain?

• There is no exit load applicable on the investments made in this fund
• Since the fund comes under the ELSS category, investments made will help investors save taxes of up to 1.5 lakh in a financial year under Section 80C of the Income Tax Act
• The fund has been recorded to deliver remarkably high returns since its inception
• The fund offers its investors a diversified portfolio of strongly growing companies with a minimum investment of Rs. 500

What You Could Lose?

• All the equity funds are subject to market risks. Being an equity large and mid-cap fund, there is a moderate level of risk involved in this fund
• The fund involves a moderately higher level of risk
• The fund has an Expense Ratio of 1.54% applicable every year

Taxation- How will they be Taxed?

Investments made in L&T Tax Advantage Fund are eligible for a tax deduction of Rs. 1.5 lakh under Section 80C of the Income Tax Act. The scheme also allows a 2-in-1 benefit of investing and tax deduction, along with greater diversification of risk control and a 360-degree research. Being an Equity Linked Savings Scheme, L&T Tax Advantage Fund has a lock-in period of 3 years, which is considered the lowest among all the tax saving alternatives in the country.

How to Invest in L&T Tax Advantage Fund?

• Sign Up/Sign in to Paisabazaar.com and go to ‘Direct Mutual Funds’
• Click on the section of ‘ELSS Funds’
• Type and search directly by the name of L&T Tax Advantage Fund Direct Growth. Once it opens up, look at the details. You can also compare similar funds as well as use SIP Calculator or Lumpsum Calculator to estimate the future value of your investment
• Click on ‘Invest Now’, select either Lump sum or SIP

Why Paisabazaar?

• Trusted website, no commission charges and no paperwork. Only direct plans, no regular ones
• You can compare more than 1,700 Funds at one platform instead of visiting the website of each AMC and then searching for numerous funds
• Easy to browse as Funds are segregated under Equity, Debt, Large Cap, ELSS, etc. You can further add filters of ratings, returns, fund houses
• Important scheme details such as latest Net Asset Value (NAV), expense ratio, Assets Under Management (AUM), etc. are also available on the portal, making it easier for consumers to pick a suitable fund

Frequently Asked Questions

Q. What are large cap funds?
A. Mutual funds that invest in stocks of companies with larger market capitalization are called large cap funds. These companies are usually the ones with a good track record and are known to be well established players in the market.

Q. Does this scheme come under Section 80C or offers tax benefits?
A. Yes, this fund is an Equity Linked Savings Scheme (ELSS) and hence, is eligible for tax exemption of upto Rs. 1.5 lakh in a financial year under Section 80C of the Income Tax Act.

Q. What is Exit Load? Does this particular scheme have an Exit Load?
A. Exit Load is the fee charged from an investor when he decides to quit the scheme and redeem his money. Generally, there is some penalty charged only if funds are redeemed in less than 365 days, otherwise there are usually no charges. No, the fund does not have an Exit Load.

Q. What is Expense Ratio? What is the Expense Ratio of this specific fund?
A. It is the fee charged from the investor for managing his fund money and allocating it to the stocks that can help him earn returns. The fund has an Expense Ratio of 1.54%.

Q. Is there a lock-in period for this scheme?
A. Since the fund is an Equity Linked Savings Scheme, it has a lock-in period of 3 years.