Motilal Oswal Long Term Equity Fund Direct-Growth
PB Recommended Equity ELSS
PLAN: GROWTH TYPE : OPEN-ENDED OPTION: Growth
1 Yr return
17.63%
3 Yrs CAGR returns
14.34%
5 Yrs CAGR returns
14.88%
NAV as on 27 Dec
₹ 20.21 by 0.17 ( -0.56%)
Expense ratio
0.83
Lock-in period
19.29%
Fund Size (Cr)
₹ 1388.56
If ₹1000 invested for 1
Estimated returns*
₹ 0
with % annual returns
* The calculator, based on assumed rate of returns, is meant for illustration purposes only.More
The calculations are not based on any judgments of the future return and should not be construed as promise on minimum returns. Information gathered and material used in this calculator is believed to be from reliable sources. Paisabazaar however does not warrant the accuracy, reasonableness and/or completeness of any such information. While utmost care has been exercised while preparing the calculator, Paisabazaar does not warrant the completeness or guarantee that the achieved computations are flawless and/or accurate and disclaims all liabilities, losses and damages arising out of the use or in respect of anything done in reliance of the calculator.
The Scheme seeks to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related instruments.
Tax Implications
Returns are taxed at 15%, if you redeem before one year. After 1 year, you are required to pay LTCG tax of 10% on returns of Rs 1 lakh+ in a financial year.
Axis Long Term Equity Direct Plan-Growth
Equity
Nippon India Tax Saver (ELSS) Fund Direct-Growth
Equity
HDFC Taxsaver Direct Plan-Growth
Equity
SBI Magnum Taxgain Direct Plan-Growth
Equity
Aditya Birla Sun Life Tax Relief 96 Direct-Growth
Equity
ICICI Prudential Long Term Equity Fund (Tax Saving) Direct Plan - Growth
Equity
DSP Tax Saver Direct Plan-Growth
Equity
Franklin India Taxshield Direct-Growth
Equity
L&T Tax Advantage Fund Direct-Growth
Equity
Sundaram Diversified Equity Fund Direct-Growth
Equity
| Top 10 Sectors | % |
|---|---|
| Financial | 40.83 |
| Construction | 7.87 |
| Cons Durable | 7.37 |
| FMCG | 6.9 |
| Services | 6.57 |
| Health Care | 6.35 |
| Automobile | 4.96 |
| Life Insurance | 4.63 |
| Chemicals | 3.96 |
| Textiles | 3.3 |
| Top 10 Sectors | % |
|---|---|
| Banking | 10.2 |
| Banking | 9.37 |
| Banking | 7.86 |
| Cars & Multi Utility Vehicles | 4.96 |
| Life Insurance | 4.63 |
| Banking | 4.53 |
| Infrastructure | 4.22 |
| Beer | 4.05 |
| Cement | 3.65 |
| Misc. Fin.services | 3.59 |
| Fund House | Motilal Oswal Mutual Fund |
| Fund Manager | Snigdha Sharma |
| Fund Setup Date | 26 Dec 2014 |
| Address | Motilal Oswal Towers - 10th Floor, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, |
| Contact | 022- 39804238, 1800-200-6626 |
| Email ID | mfservice@motilaloswal.com |
About Motilal Oswal Long Term Equity Fund
Motilal Oswal Long Term Equity Fund is an open ended equity scheme, that provides tax saving benefits along with long term capital appreciation. It invests in a mix of equity and equity related securities of large cap, midcap and small cap equity stocks.
The scheme comes with a mandatory lock-in period of 3 years, that ensures that the market volatility stabilizes in this period, and subsequently increasing the value of returns delivered in the long run. It is an attractive investment instrument for investors looking to create a substantial corpus of wealth and simultaneously save taxes.
Who should invest in Motilal Oswal Long Term Equity Fund?
- Investors who have a moderate risk tolerance, can consider investing in this fund as the underlying equity securities are quite sensitive to market fluctuations.
- Only those investors whose investment philosophy is in alignment with that of the fund manager should consider investing in this fund. The fund follows the “buy and hold” approach while investing. Equity stocks of firms with quality business management team and high growth potential are picked for long-term investment.
- This scheme is suitable for investors with long term investment horizon (preferably more than 3 years), as the fund has a minimum lock-in period of 3 years. Also, it has been observed that equity securities perform well in the long run, and this mandatory lock-in period ensures that the investors remain invested.
- Investors can save upto ₹1.5 lakh in taxes through investment in this fund, as an investment in this fund is eligible for tax deduction under Section 80(C) of the IT Act.
- It is important to diversify your investment portfolio, and this fund offers a perfect opportunity for diversification. It invests in a combination of large cap, midcap and small cap stocks. Instead of individually investing in these stocks, you can invest in this fund, to make them a part of your investment portfolio.
Taxation – How will this fund be Taxed?
Let’s say, an individual has ₹2 lakh disposable taxable income in a given financial year, and s/he decides to invest the amount in Motilal Oswal LongTerm Equity Fund. ₹1.5 lakh out of this amount would be exempted from any taxation. ₹50,000 would be taxed as per the income tax slab of the investor.
The returns from this fund are taxed like that from any other equity mutual fund scheme. However, since the units can’t be redeemed before 3 years of investment, only Long Term Capital Gains Tax (LTCG) of 10% above ₹1 lakh will be levied.
Suppose an investor has made a capital gain of ₹1.5 lakh on investment in this scheme, and withdraws the amount after 1 year of investment, LTCG of 10% would be levied on ₹50000. ₹1Lakh is exempted from taxation. The payable tax would be ₹5000.
How to invest in this fund online?
- Sign Up/Sign In to Paisabazaar.com and go to ‘Equity Funds’
- Click on the section of ‘ELSS Funds’
- Type and search directly by the name of Motilal Oswal Long Term Equity Fund. Once it opens up, look at the details. You can also compare similar funds as well as use Returns Calculator to calculate 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
- 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, etc are also available on the portal, making it easier for consumers to pick a suitable fund.
FAQs
Q. What is the entry load for Motilal Oswal Long Term Equity Fund?
A. There is no applicable entry load on the aforementioned fund.
Q. What is the exit load for this Fund?
A. Since an investor cannot redeem the purchased units before 3 years, there is no applicable exit load on this fund.
Q. Which is the better mode of investment for this fund, SIP or Lump-sum investment?
A. Since the aforementioned fund is an equity fund, it is advisable to invest via Systematic Investment Plan (SIP) to average out the cost of units purchased. SIPs effectively counter the risk arising out of market fluctuations.
Q. What is the expense ratio charged by the Motilal Oswal l Long Term Equity fund?
A. The expense ratio charged by the aforementioned fund is 0.86%. (as of November 30, 2019)
Q. What are the Best Equity Linked Savings Schemes to invest in 2020?
A. Here is a list of top performing ELSS one can consider investing in 2019:
Motilal Oswal Long Term Equity Fund
Axis Long Term Equity Fund
ICICI Prudential Long Term Equity Fund
L&T Tax Advantage Fund
IDFC Tax Advantage Fund