ELSS Mutual Fund with Over 20% CAGR Return: One-Time Investment of ₹10 Lakh Turns to Over ₹64 Lakh

As the financial year 2024–25 draws to a close, individuals still have a brief window to make tax-saving investments. 

From 1 April 2025, the new financial year 2025–26 begins, and those following the old tax regime can still take advantage of Section 80C provisions. 

This section allows deductions of up to ₹1.5 lakh when invested in specified instruments. Among these options, the Equity-Linked Savings Scheme (ELSS) stands out as a dual-benefit product, offering both potential tax savings and wealth generation.

ELSS: Combining Tax Efficiency with Market-Linked Returns

ELSS funds are a category of mutual funds that invest primarily in equities. What sets them apart from other tax-saving instruments is their ability to deliver market-linked returns while also qualifying for tax deductions under Section 80C. With a mandatory lock-in period of just three years—among the lowest in the tax-saving space, ELSS provides greater liquidity and the potential for long-term capital appreciation.

A Decade of Growth: Quant ELSS Tax Saver Fund Performance

Among the ELSS options available, the Quant ELSS Tax Saver Fund has shown a particularly notable track record. Launched on 1 January 2013, this fund has delivered a Compound Annual Growth Rate (CAGR) of 20.41% over the past 10 years, as of March 25, 2025.

Here is a snapshot of its performance: 

An investment of ₹10 lakh made 10 years ago in this fund would now be worth approximately ₹64.14 lakh—highlighting its consistent growth and wealth-creation potential.

Investment Objective and Minimum Requirements

The primary aim of the Quant ELSS Tax Saver Fund is to generate capital appreciation by investing predominantly in equity shares that possess growth potential. The secondary objective includes providing dividends and other income as part of the fund’s strategy.

Minimum Investment Details:

• Lump sum investment: ₹500
  
• Additional investment: ₹500
  
• Systematic Investment Plan (SIP): ₹500 minimum per instalment
  

These low entry points make the fund accessible for a wide range of investors, from beginners to experienced participants seeking tax-saving instruments.

Final Thoughts

While the new financial year is just around the corner, those looking to reduce their tax liability under the old regime still have an opportunity to act. ELSS funds like Quant ELSS Tax Saver offer the added incentive of potentially higher returns, coupled with tax benefits. That said, mutual funds are subject to market risk, and historical performance should not be taken as a guarantee for future returns.

Ready to watch your savings grow? Try our SIP Calculator today and unlock the potential of disciplined investing. Perfect for planning your financial future. Start now!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.