{"id":1030,"date":"2024-04-22T06:50:28","date_gmt":"2024-04-22T06:50:28","guid":{"rendered":"https:\/\/jamawealth.com\/askguru\/?p=1030"},"modified":"2026-03-02T19:28:49","modified_gmt":"2026-03-02T19:28:49","slug":"which-is-the-smarter-choice-pay-tax-and-invest-in-mid-cap-or-small-cap-funds-which-give-higher-returns-or-invest-in-an-elss-which-helps-to-save-tax-but-has-a-low-return","status":"publish","type":"post","link":"https:\/\/maxiomwealth.com\/askguru\/2024\/04\/22\/which-is-the-smarter-choice-pay-tax-and-invest-in-mid-cap-or-small-cap-funds-which-give-higher-returns-or-invest-in-an-elss-which-helps-to-save-tax-but-has-a-low-return\/","title":{"rendered":"Which is the smarter choice – pay tax and invest in mid-cap or small-cap funds which give higher returns, or invest in an ELSS which helps to save tax, but has a low return?"},"content":{"rendered":"\n

An ELSS<\/a> fund not only saves you tax but it can also build wealth over the long run. It is not true that an ELSS fund gives a low return.<\/p>\n\n\n\n

You might be comparing the recent or last 3 year performance of some midcap and small cap funds. This is not a fair comparison. Looks at the long term returns of various fund classes and you will see that ELSS over long run has also done well.<\/p>\n\n\n\n

Small cap and mid cap funds get growth with a higher risk and based on your risk profile may find a place in your asset allocation.<\/p>\n\n\n\n

Summary<\/strong>: If you need the tax saving benefit go for ELSS. No point losing upto 30% of your money to taxes and invest in a small cap fund which may suddenly crash unpredictably.<\/p>\n\n\n\n

More:<\/p>\n\n\n\n

  1. ELSS Funds<\/a><\/li>
  2. Small & Mid cap Funds<\/a><\/li><\/ol>\n\n\n\n\n
    \n

    Maxiom Wealth \u2014 Free Tool<\/p>\n

    Maximise Your \u20b91.5 Lakh 80C Tax Saving<\/h3>\n

    ELSS is the only 80C option that also builds long-term wealth \u2014 with the shortest lock-in (3 years) and equity-level returns. See your tax saving and projected corpus with our ELSS calculator.<\/p>\n Calculate ELSS Returns \u2192<\/a>\n Talk to a Financial Advisor<\/a>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

    An ELSS fund not only saves you tax but it can also build wealth over the long run. It is not true that an ELSS fund gives a low return. You might be comparing the recent or last 3 year performance of some midcap and small cap funds. This is not a fair comparison. Looks… Read More »Which is the smarter choice – pay tax and invest in mid-cap or small-cap funds which give higher returns, or invest in an ELSS which helps to save tax, but has a low return?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[131,26],"tags":[],"class_list":["post-1030","post","type-post","status-publish","format-standard","hentry","category-asset-allocation-investments","category-investments"],"_links":{"self":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1030","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/comments?post=1030"}],"version-history":[{"count":1,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1030\/revisions"}],"predecessor-version":[{"id":3705,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/1030\/revisions\/3705"}],"wp:attachment":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/media?parent=1030"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/categories?post=1030"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/tags?post=1030"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}