You have invested in the equity linked saving scheme. It has been months and now you want to know the return on your ELSS investment. You want to know whether your top ELSS fund has given the expected return or not. You want an ELSS scheme calculator which can tell you the average annual return of mutual fund scheme. Today, I would give a calculator which can calculate the annual average return of tax saving mutual fund.
ELSS Calculator Instructions
The following calculator can be used as the tax saving mutual fund calculator. To use this calculator, you have to give 4 values.
- Date of Investment – It is the date considered for ELSS investment
- Date of calculation – It is the date on which you want to calculate the Compounded Annual Growth Rate (CAGR) of ELSS. CAGR is the average increase of every year.
- The Investment Value (NAV at the time of investment) – This can be NAV, Benchmark index or any asset at the time of purchase.
- The Maturity Value (NAV of desired Day for the calculation) – It is the value of NAV, index or sale price of the asset.
Steps of Calculation
- This calculator is not only useful for mutual fund return calculation, but you can get the CAGR (Compounded annual growth rate) of any other investment.
- Fill the date of investment. This date can be real or assumed. It can’t be more than the current date.
- Give the market value of the investment at the time of purchase. In the case of tax saving mutual fund, it would be the NAV at the time of purchase. It can be NAV, stock price or index level.
- Give the market value of the investment at the time of the sale. It can be NAV, stock price or index level.
How To Get NAV
Ideally, I should have automated the NAV data with this calculator. So that you are not required to search for the NAV data. But, It needs technical expertise which is beyond my capabilities. Also, fetching the data of Hundreds of scheme would be very resource intensive. Therefore, you are required to visit the google finance page and search for the required ELSS. I am also listing direct links of the some of the big ELSS schemes.
Link To Check the NAV of any mutual fund Scheme – Google Finance Page
Get NAV of the following schemes . These are all the Growth and Direct version of the respective ELSS. I always recommend the Growth option for the ELSS. The Direct plans give you more return than the regular plan. The funds are arranged in order of their AUM.
- Axis Long term equity
- Reliance Tax Saver Fund
- ICICI Prudential Long Term Equity
- Birla Sun Life Tax Relief 96
- Franklin India TaxShield
- DSP Blackrock TaxSaver
- BNP Paribas Long Term Equity
- IDFC Tax Advantage
- Birla SunLife Tax Plan
- Tata India Tax Savings Fund
If you want to calculate the rate of return of the benchmark index, you can enter the value of the index in the place of NAV.
Time Frame for ELSS Return Calculation
So, you wanted to know the return on the equity linked saving scheme. You have just calculated the average annual return of the ELSS. But, did you get the true picture? Is your calculation enough to tell the potential of your ELSS? I don’t think so. Because a tax saving mutual fund should be judged on the calculation of return from different time periods.
You can find the return of an ELSS for 1 year, 3-year, 5-year and 10-year period. The ELSS is locked for 3 years, thus you should think of at least 3 years. For a better idea, you should also check the return of the last 5 years.
Check Return During Downturn
However, I must say that mere return of the tax saving mutual fund should not be the factor to judge the ELSS. Rather, you should also think about the risk of an ELSS.
You should check the performance of ELSS during the market downfall. Whether your selected mutual fund fell more or less than the sensex or nifty. You can also check the performance of your tax saving mutual fund against the BSE 200. Most of the ELSS has bench-marked themselves against the BSE 200.
To check the volatility of the ELSS you can use the above calculator. You should go through these steps to check the volatility.
- Select a period of market downfall. Choose the beginning and end date.
- Get the NAV of the ELSS on those two dates.
- Fill the date and corresponding NAV into the calculator.
- Note the resultant return of the fund.
- Now get the Sensex, Nifty or BSE-200 mark on those two dates.
- Fill the value of these indices on the chosen date.
- Note down the resultant Return of Sensex, Nifty or BSE-200
- Compare both the return, If mutual fund gave a better return, your ELSS is a good choice.
In this post, I have presented a simple and beautiful calculator to know the return of tax saving mutual fund. You can also use this calculator to know the return on any investment. I have also told you that you should calculate the return of different period. Particularly, you must check the return during the market downturn.