Mirae Asset Tax Saver Fund — SIP Calculator

Fund Overview

Mirae Asset Tax Saver Fund is an ELSS (Equity Linked Savings Scheme) that combines tax saving under Section 80C with equity investing. Managed by Mirae Asset Mutual Fund, it has a 3-year lock-in period — the shortest among all Section 80C investment options. The fund invests across large, mid, and small cap stocks with a focus on long-term wealth creation.

What distinguishes Mirae Asset’s ELSS offering is its research-intensive approach. The fund manager team conducts deep fundamental analysis to identify quality companies across market caps, with a particular strength in identifying emerging growth stories early.

Who Should Invest

This fund is suitable for investors seeking to claim tax deduction under Section 80C (up to ₹1.5 lakh per year) while building long-term equity wealth. It works well for salaried professionals in higher tax brackets who want their tax-saving investments to also generate capital appreciation.

Unlike PPF or tax-saving FDs that offer fixed returns, ELSS provides equity-linked growth potential — but also comes with market risk. Investors should be comfortable with a 3-year minimum lock-in and ideally hold for 5+ years.

Key Strengths

• Shortest 80C lock-in — Only 3 years versus 5 years for FD, 15 years for PPF
• Equity growth potential — Offers capital appreciation potential that fixed-income 80C options cannot match
• Tax-efficient returns — Gains are taxed as LTCG (12.5% above ₹1.25L), potentially lower than your income slab rate
• Research-driven stock selection — Mirae Asset’s investment team has demonstrated strong stock-picking abilities, particularly in mid and small caps

Risks to Consider

• 3-year lock-in — You cannot redeem for 3 years, even in emergencies; suitable only for money you will not need
• Equity market risk — ELSS funds can lose value in bear markets; if you need to redeem just after the lock-in during a downturn, you may book losses
• Tax rule changes — Section 80C limits and ELSS tax treatment can change; the 2023 budget removed LTCG indexation benefit for debt funds but left ELSS unchanged (for now)
• Performance variability — ELSS fund performance varies significantly; choose based on long-term track record, not just the tax benefit

How It Compares

Within the ELSS category, Mirae Asset Tax Saver has consistently ranked among the top performers over 5 and 10 year periods. Its mid-cap bias has helped it outperform more conservative ELSS funds during bull markets, though this also means higher volatility.

Versus other 80C options (PPF, NSC, tax-saving FDs), ELSS offers significantly higher return potential but with market risk. Over 10+ year periods, ELSS has historically delivered 3-5% higher annual returns than PPF.

Performance Context

During the 2020 COVID crash, this fund fell approximately 35%, in line with the ELSS category. The 3-year lock-in actually helped investors — they could not panic-sell at the bottom, and those who stayed invested saw strong recovery as markets rebounded.

The fund has benefited from Mirae Asset’s strength in identifying mid-cap growth stories, which have contributed meaningfully to its long-term outperformance versus category benchmarks.

Use Our SIP Calculator with This Fund

To see how a monthly SIP in Mirae Asset Tax Saver Fund would have performed through different market cycles, use our SIP calculator. The calculator uses real NAV data to show actual historical returns including the lock-in period impact.