Mirae Asset ELSS Tax Saver Fund Direct Growth

Mirae Asset Tax Saver Fund is an Equity Linked Saving Scheme (ELSS) that aims to generate long-term capital appreciation by primarily investing in equity and equity-related instruments. 

As per SEBI guidelines, the fund invests a minimum of 80% of its assets in equities, while the remaining portion can be allocated to debt and money market instruments. This allows the fund to maintain a diversified portfolio that balances growth potential with a degree of stability.

One of the key benefits of this fund is the tax deduction it offers under Section 80C of the Income Tax Act. Investors can claim deductions of up to ₹1,50,000 in a financial year. However, it comes with a mandatory lock-in period of three years, which is the shortest among all tax-saving investment options under Section 80C.

Investment Strategy Of Mirae Asset ELSS Tax Fund 

The fund manager follows a bottom-up stock selection strategy, focusing on individual companies rather than making decisions based solely on macroeconomic trends or sectoral outlooks. Without sticking to any one investment style, the approach is flexible, aiming to identify strong growth opportunities across the market.

Should You Invest In Mirae Asset ELSS Direct Growth Fund?

The tax saver fund is suitable for investors who:

- Want to save tax under section 80C and build wealth

- Have a high-risk appetite, due to high equity exposure

- Have a long-term horizon, due to the 3-year lock-in period

- Want a diversified portfolio that invests across all market caps

Taxation On Mirae Asset ELSS Fund

Equity-linked savings schemes have a lock-in of 3 years, which means short-term capital gain tax is not applicable. Since redemptions happen after 3 years, investors enjoy a tax exemption of up to ₹1,25,000 under long-term capital gain. Gains beyond that are taxed at 12.5%. 

Allocation & Historical Returns

Currently, the fund's portfolio comprises 16.6% small-cap stocks, 65.48% large-cap stocks, and 16.30% mid-cap stocks.

With an AUM of ₹23945.0 crores, Mirae Asset ELSS Tax Saver Fund Direct Growth generated a return of 13.2% in 1 year, 20.1% in 3 years, 27.6% in 5 years. while its benchmark index (Nifty 500) generated 10.0% in 1 year, 18.7% in 3 years, and 24.5% in 5 years.