InvestorQ : Can I invest in the Quant Tax Plan ELSS fund for the long term?
prachi Patwardhan made post

Can I invest in the Quant Tax Plan ELSS fund for the long term?

Answer
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4 weeks ago
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Yes, it works for the long -term since it is a tax saver fund. You can also avail of tax benefits under section 80c of the Income Tax Act. However, there are a few things you need to know before investing in the fund-

  • Quant Tax Fund has a major allocation towards mid-cap and small-cap funds. Thus, you need to be comfortable with the high-risk profile of the fund and accordingly earmark requisite funds to this scheme.
  • Its AUM is smaller compared to the majority of the funds in this category. This leads to a higher expense ratio.
  • Given the portfolio composition of the scheme, it may be more prone to volatility. Returns may exceed expectations in bull cases while diminishing significantly in bear cases. Thus, you may need to invest for 10years and above to rationalize returns.
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