Investing in ELSS through SIPs is the best investment plan. This scheme benefits you both – capital appreciation as well as tax benefits. So inevitably, you must have chosen the correct investment plan for tax saving, and it must be safe and it must also benefit you. But are you sure about the return? Are you satisfied with it? Have you gone thoroughly through the annual returns for a mutual fund?
Wait, you don’t know, what is an excellent annual return for a mutual fund? Well, don’t worry; you are in the right place.
Annual return is known as the return of an investment that is offered over a period of time. It is specified as a yearly time-weighted percentage, i.e., a percentage change over a one-year period in an investment. Here, the sources of returns involve dividends, capital appreciation and performance of capitals.
Before investing in a mutual fund, an investor should have total and correct knowledge about the investment. It is necessary to understand the investment goals over a specified time horizon. Knowing about the expected return is an advantage for the investor. It allows the investor to measure the mutual fund’s performance and helps to determine whether the plan is working according to the objectives.
Always invest in a mutual fund that aims towards long-term investing. It should undergo smoothly, and grow consistently with less mutability than the market as a whole, for which, you should go for an equity mutual funds through Systematic Investment Plan (SIP) strategy. These funds possess potential to proffer high and mighty returns over an extended period than other investment options; this involves less risk, and your savings are safe for you.
So, always do a proper research on the investment plan you are choosing, and then go for it after enquiring about its annual return.
