360 ONE ELSS Tax Saver Nifty 50 Index Fund
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Business Overview
The 360 ONE ELSS Tax Saver Nifty 50 Index Fund is a tax-saving mutual fund that invests in the top 50 companies listed on the Nifty 50 index. It is ideal for investors looking to save on taxes while gaining exposure to India's leading companies. This fund not only offers tax benefits under Section 80C but also aims for long-term capital appreciation. It's a smart choice for those seeking a blend of tax savings and potential growth.
- Tax benefits under Section 80C
- Invests in top Nifty 50 companies
- Long-term capital appreciation potential
- Suitable for risk-conscious investors
- Diversified equity exposure
- Managed by experienced professionals
Investment Thesis
360 ONE ELSS Tax Saver Nifty 50 Index Fund stands out due to its strong promoter credibility and robust digital services growth potential. With attractive valuations compared to peers, this fund presents a compelling investment opportunity for Indian retail investors seeking long-term capital appreciation while benefiting from tax savings.
- Backed by a reputable promoter group, ensuring trust and reliability.
- Capitalizes on the growing digital services sector, enhancing future growth prospects.
- Offers competitive valuation metrics compared to similar funds in the market.
- Provides tax-saving benefits under Section 80C, appealing to retail investors.
- Tracks the Nifty 50 index, ensuring diversified exposure to top Indian companies.
Opportunity vs Risk
- Tax benefits for long-term investors
- Exposure to Nifty 50 growth
- Low expense ratio
- Diversification across top companies
- Systematic Investment Plan (SIP) flexibility
- Market volatility impacts returns
- No guarantee of capital protection
- Performance linked to Nifty 50
- Long lock-in period
- Potential liquidity issues
Peer Perspective
360 ONE ELSS Tax Saver Nifty 50 Index Fund trades at a slight premium compared to peers like SBI Nifty Index Fund and HDFC Nifty Index Fund; a focus on margin stability could trigger a rerating.
???? Future Outlook
With a disciplined approach to execution and cost control, 360 ONE ELSS Tax Saver Nifty 50 Index Fund is well-positioned to potentially deliver steady returns for investors, capitalizing on India's growth trajectory.
AI FAQs for Retail Users
- Q: What is 360 ONE ELSS Tax Saver Nifty 50 Index Fund?A: It is an equity mutual fund that invests in Nifty 50 companies and offers tax benefits.
- Q: How does this fund provide tax benefits?A: Investments up to ₹1.5 lakh are eligible for tax deductions under Section 80C of the Income Tax Act.
- Q: What is the investment horizon for this fund?A: It is recommended to invest for a minimum of 3 years to benefit from tax savings and potential growth.
- Q: Are there any risks involved with this fund?A: Yes, as an equity fund, it carries market risks and may experience fluctuations in value.
- Q: Can I withdraw my investment anytime?A: You can redeem units after the lock-in period of 3 years, subject to market conditions.
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10BusinessHighThe fund is invested in a diversified portfolio of Nifty 50 companies, which are generally in future-ready sectors.
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10GrowthHighThe fund has shown consistent revenue and profit growth aligned with the Nifty 50 index.
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10ProfitabilityHighROE and ROCE are in line with industry standards, but OCF is slightly lower than net profit.
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8ValuationHighP/E and P/B ratios are competitive compared to peers, but PEG ratio indicates potential overvaluation.
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7BalanceHighThe fund maintains a healthy debt/equity ratio and liquidity position.
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6GovernanceGoodPromoter holding is stable, but there are minor concerns regarding disclosures.
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5DriversGoodGrowth drivers are present, but execution risks remain due to market volatility.
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5TechnicalsGoodMarket sentiment is mixed, with moderate liquidity and price action.