Is Bajaj Finserv ELSS Tax Saver Fund the Best Tax Saving Option for 2025?

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Do you struggle to choose between saving tax and growing your wealth? Only if you could do both by investing in a single scheme. Guess what? Here is a great investment option: the ELSS Mutual Funds (Equity-linked Schemes).

It brings you back to the newly launched Bajaj Finserv ELSS Tax Saver Fund NFO, a better alternative than other tax-saving instruments like PPF. It is open for investment from 24th December 2024 and will close on 22nd January 2025.  

Let's start this analysis to learn whether it could be the best NFO 2025 for you or not.

Bajaj Finserv ELSS Tax Saver Fund NFO Basic Details

Here are the key information regarding the latest NFO BY Bajaj Finserv Mutual Fund:

Let’s learn about the investment philosophy adopted by this new fund offer in the next heading.

Investing Strategy Used by Bajaj Finserv ELSS Tax Saver Fund NFO

The Bajaj Finserv Mutual Fund investment philosophy for the newly launched NFO in 2025 is very detail-oriented.

It is a special model called "INQUBE". It means it focuses on three areas: information edge, quantitative edge and behavioural edge.

You can refer to the below picture to learn more about this unique investment philosophy. 

Furthermore, Let's review the stock selection process of Bajaj Finserv ELSS Tax Saver Fund NFO in three simple steps:

Step 1: Bottom-up Stock Selection

The first step is to identify valuable stocks from bottom to top ranking position through a fundamental company analysis known as bottom-up stock selection.

Step 2: Ensure Appropriate Valuation

This step includes buying the stocks at a fair price and investing for a longer duration.

Step 3: Buy & Hold Growth

The last step includes investing in such businesses that show a strong growth potential in the future.

The next section covers some key reasons why this new NFO could be a valuable addition in 2025.

Why Invest in Bajaj Finserv ELSS Tax Saver Fund NFO Now?

The following are the key reasons for investing in this newly launched NFO:

1. All Benefits of ELSS

Bajaj Finserv ELSS Tax Saver Fund allows you to claim tax deductions up to ₹1.5 lakh under Section 80C. Besides tax saving, it offers the potential for higher returns since it invests in equities. The fund has a 3-year lock-in period, which is the shortest among tax-saving options. Plus, long-term gains are taxed at a lower rate of 10%, this makes it more tax-efficient in the long run.

2. Long-Term Oriented Investment

This fund is focused on long-term growth, which means you can benefit from compounding and higher equity returns over time. Keeping your investments for a longer time helps you fight the market volatility and safeguards your investments by minimizing the risk. Additionally, holding your investments for more than three years gives you benefit from tax advantages on long-term capital gains.

3. Stock Selection Process

The fund’s managers carefully select strong, well-managed companies with growth potential. They use a combination of top-down (macro) and bottom-up (particular company) analysis to build a diversified portfolio. This approach aims to minimize risks while focusing on stocks that are likely to perform well over time, even as market conditions change.

Are you curious to know if this latest NFO will suit you or not? Let’s get some insights on that.

Who Should Invest in Bajaj Finserv ELSS Tax Saver Fund NFO?

Here is a breakdown to know the suitability of this new fund offer for investment purposes:

1. Salaried Individuals

Working a 10-12 hour shift a day will be worth it because it combines the tax benefits and better post-tax returns over the long term that Bajaj Finserv ELSS Tax Saver Fund NFO covers.

2. First-time Investors

If you have just started your mutual fund's journey, exploring equity investments with a tax-saving fund is a wise choice for a smart investor like you.

3. Long-term Investors

Are you looking to create wealth in Mutual Funds over a long time? If yes, this new fund offer by Bajaj Finserv Mutual Fund is a great deal. Why? It aims for long-term wealth creation through its disciplined investing.  

Summary on Bajaj Finserv ELSS Tax Saver Fund Review 2025

To wrap up this expert analysis of Bajaj Finserv ELSS Tax Saver Fund NFO for 2025, you can conclude it is a suitable investment if tax benefits under section 80C with an added SIP facility are what you are looking for. Moreover, given its potential for relatively better returns, it offers the lowest 3-year lock-in period compared to other tax-saving options like PPF, which come with 5-15 years of lock-in periods.