Small Investment - ELSS or Index Fund?

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Deal Cadet
dealpanda

Hii, I want to start monthly SIP what should I choose between ELSS or Index.

Want to stay invested for long term, not much but will start with 1k per month. Already having SIPs in Quant Active Fund and Nippon India Flexi Cap. Would be really helpful if can name some particular plans to look into.

TIA

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Finance Mentor Finance Mentor
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Parag Parikh Flexicap Fund (Invests in Indian & US stocks)

For later - One ELSS fund, One Large & Midcap oriented fund. One Midcap fund and one small cap fund (7 year plus)

You don't need more than these for pure equity exposure. Maybe 1 Index Fund if u want just for the heck of it. You already have a multi cap (Quant active) and flexicap fund.

Deal Cadet Deal Cadet
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If tax saving (80C) is not the objective, look at index funds (as they have low expense ratio). You can choose from Nifty50, BSE30, NiftyNext50, Bank ETF, IT ETF, Pharma ETF, Gold ETF's, NASDAQ ETF - list is too big.

If you have a trading account, you can buy ETF at real time price from Stock Market directly - https://www.nseindia.com/market-data/exchange-t...

Finance Mentor Finance Mentor
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GotoVishal wrote:

If tax saving (80C) is not the objective, look at index funds (as they have low expense ratio). You can choose from Nifty50, BSE30, NiftyNext50, Bank ETF, IT ETF, Pharma ETF, Gold ETF's, NASDAQ ETF - list is too big.

If you have a trading account, you can buy ETF at real time price from Stock Market directly - https://www.nseindia.com/market-data/exchange-t...

Index fund vs ELSS? Really? On what parameters are you even comparing the two?
Deal Cadet Deal Cadet
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Ramta_Jogi wrote:
Index fund vs ELSS? Really? On what parameters are you even comparing the two?
I am just trying to say that if tax saving is not the objective, no point getting locked in ELSS with expensive expense ratio.
In index funds and/or ETF, there is a huge variety available, and one can take their pick from the lot.
Finance Mentor Finance Mentor
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GotoVishal wrote:
I am just trying to say that if tax saving is not the objective, no point getting locked in ELSS with expensive expense ratio.
In index funds and/or ETF, there is a huge variety available, and one can take their pick from the lot.
The returns of ELSS funds are way higher than any Index fund... even if you pay 4x the expense ratio. So am not sure how do these two different categories with different benchmark can be viewed together til your view ofl ong term is 1-2 years?
Deal Cadet Deal Cadet
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Ramta_Jogi wrote:
The returns of ELSS funds are way higher than any Index fund... even if you pay 4x the expense ratio. So am not sure how do these two different categories with different benchmark can be viewed together til your view ofl ong term is 1-2 years?

Can you post data supporting your claim of "way higher" returns in ELSS please...

Finance Mentor Finance Mentor
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GotoVishal wrote:

Can you post data supporting your claim of "way higher" returns in ELSS please...

Google it. 

Compare ELSS returns of Mirae or Quant with Nifty.
Deal Cadet Deal Cadet
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Ramta_Jogi wrote:
Google it. 

Compare ELSS returns of Mirae or Quant with Nifty.
Every bit of information is available on Google. Then why are people writing here, asking for opinions and others helping them with what ever they can.
Deal Cadet Deal Cadet
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@Ramta_Jogi                     

                                            YTD    1D     1M         3M     6M       1Y

Mirae Tax Saver Fund         2.32    0.52    3.74    3.99     13.74    1.5

BSE Sensex Index Fund     8.06    0.03   4.76     6.  11     16.78    7.02

Finance Mentor Finance Mentor
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GotoVishal wrote:

@Ramta_Jogi                     

                                            YTD    1D     1M         3M     6M       1Y

Mirae Tax Saver Fund         2.32    0.52    3.74    3.99     13.74    1.5

BSE Sensex Index Fund     8.06    0.03   4.76     6.  11     16.78    7.02

Exactly my point as i wrote in my previous comment - read it again.

"Long term" for you is 1-2 years.
Finance Mentor Finance Mentor
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GotoVishal wrote:
Every bit of information is available on Google. Then why are people writing here, asking for opinions and others helping them with what ever they can.
Same reason that people ask such questions on Quora (of all the places!) and Reddit.

I am here for real life experiences, I read blogs for on-hand experiences. Google can show you theoretical returns on the surface of things but only people can give you real/practical information based on their experience(s).

So intead of telling me what the historical returns are or what the returns could be as most morons on YouTube do, I want other users here to show me what their returns on SIP/Lumpsum are, what criteria they are using for investment. Only thing is my idea of investment in any mutual fund, which is equity based, is nothing short of 5-10 years (short), 10-15 years (medium) and 15-20 years+ (long).
Finance Mentor Finance Mentor
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@dealpanda

Why did you choose Nippon Flexicap Fund? Just curious.

Deal Cadet Deal Cadet
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Ramta_Jogi wrote:

@dealpanda

Why did you choose Nippon Flexicap Fund? Just curious.

Didn't chose it was just recommended by my sister's husband (also an agent for mf) and I couldn't deny 😅,it was also my first investment didn't knew a thing about mf and he needed clients too. Is that a bad choice, just curious coz his senior was recommending it like this one's gonna boom so much and so in next 10 years 🤣

Finance Mentor Finance Mentor
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dealpanda wrote:
t was just recommended by my sister's husband (also an agent for mf)..... coz his senior was recommending it

Of course they would recommend it... It's got one of the highest commission for agents. 

Deal Cadet Deal Cadet
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Ramta_Jogi wrote:

Of course they would recommend it... It's got one of the highest commission for agents. 

Thought so 😬

Anyways if it performs then good otherwise I will stop 

Deal Cadet Deal Cadet
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So basically a risk free investment would be index fund with average returns of around 10-14% and elss would produce better returns in long term but comes with risk.

Right? @Ramta_Jogi @GotoVishal

Finance Mentor Finance Mentor
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dealpanda wrote:

So basically a risk free investment would be index fund with average returns of around 10-14% and elss would produce better returns in long term but comes with risk.

Right? @Ramta_Jogi @GotoVishal

Nope. Equity funds are never risk free. Even a 7 year period could give you 0 returns or even negative returns with loss of capital if all shit hits the floor, like it did during the covid crash.

It took a good 6 years+ for Nifty 50 index itself to reclaim the highs it made in Jan 2008.
Deal Cadet Deal Cadet
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Ramta_Jogi wrote:
Nope. Equity funds are never risk free. Even a 7 year period could give you 0 returns or even negative returns with loss of capital if all shit hits the floor, like it did during the covid crash.

It took a good 6 years+ for Nifty 50 index itself to reclaim the highs it made in Jan 2008.

I am gonna go with elss then although tax saving is not my requirement. I am seeing Quant Tax Plan Direct Growth showing good returns, is it a good option or is there any other plan you would recommend 

Finance Mentor Finance Mentor
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dealpanda wrote:

I am gonna go with elss then although tax saving is not my requirement. I am seeing Quant Tax Plan Direct Growth showing good returns, is it a good option or is there any other plan you would recommend 

Google & learn
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