If you are a mutual fund investor, you must be aware that one of the most feasible and preferred routes of investing is systematic investment plan or SIP. This offers an array of benefits, for obvious reasons. First, it allows the investors to make the most of rupee cost averaging.
Under the rupee cost averaging, investor can average out the cost of acquiring an asset when they buy its units at different prices over a period of time. Second, it inculcates a sense of financial discipline. Third, it allows investors to let their investment grow considerably so long as they stay invested over a period of time.
Here, we randomly handpick one mutual fund scheme (Edelweiss Flexi Cap Fund) and monitor its return since inception to evaluate how much the investment would have grown since its launch if the investor were consistent over a period of time.
For instance, if someone were investing regularly into Edelweiss Flexi Cap each month in form of SIP for just one year, the investment would have grown to ₹1.13 lakh by investing a total of ₹1.20 lakh.
In two years, this investment of ₹10K every month would have spiked to ₹2.65 lakh, whereas the total investment stands at ₹2.40 lakh. In three years, the total return would have reached ₹4.59 lakh whereas the investment stands at ₹3,60,000. In five years, total investment would have grown to ₹9.35 lakh by investing a total of ₹6 lakh.
For instance, if someone were investing regularly into Edelweiss Flexi Cap each month in form of SIP for just one year, the investment would have grown to ₹1.13 lakh by investing a total of ₹1.20 lakh.
In two years, this investment of ₹10K every month would have spiked to ₹2.65 lakh, whereas the total investment stands at ₹2.40 lakh. In three years, the total return would have reached ₹4.59 lakh whereas the investment stands at ₹3,60,000. In five years, total investment would have grown to ₹9.35 lakh by investing a total of ₹6 lakh.
Tax relief on stamp duty and registration fees
Besides repayment of principal, you may also take deduction in the event of stamp duty and registration charges under Section 80C—up to the total limit of ₹1.5 lakh. These deductions can be claimed during the year such expenses are incurred and only if the house is not transferred within five years.
Don’t miss out while filing your ITR
Home loan tax deductions can cut a whopping amount from your annual tax outgo, especially when you’re repaying a massive loan. But make sure the property meets all the eligibility criteria, and that you possess possession or completion certificates. When you’re filing your ITR for FY 2024–25, review your home loan statement, confirm your interest and principal breakup, and avail every benefit coming your way under the relevant section.
