BAJAJ ASSET MANAGEMENT LIMITED.
BAJAJ ASSET MANAGEMENT LIMITED.
An Equity Linked Savings Scheme, or ELSS, is a type of equity mutual fund that invests at least 80% of its assets in equity and equity-related instruments. Its potential returns depend on the performance of the securities held by the scheme and are not assured.
Each ELSS investment has a lock-in period of three years from the date on which its units are allotted. For SIP investments, every instalment is treated as a separate investment and completes its three-year lock-in on a different date.
Eligible ELSS investments may qualify for a deduction under Section 123 of the Income-tax Act, 2025, corresponding to Section 80C of the Income-tax Act, 1961. This deduction forms part of the overall ₹1.5 lakh limit and is subject to the investor’s tax regime and other applicable conditions. It is generally unavailable under the default new tax regime.
Source: SEBI Investor, “A Guide to ELSS”; Income-tax Act, 2025, as amended by the Finance Act, 2026.
How much could a monthly SIP add up to over five years? What happens if you invest a lumpsum instead? An ELSS calculator turns questions like these into easy-to-understand estimates.
Enter the investment amount, select a period and choose an expected rate of return. The calculator then shows the total amount invested and its estimated future value. You can also adjust the inputs to compare different scenarios.
Since ELSS returns are market-linked, the final investment value may differ from the estimate.
Planning an investment can feel abstract until you put numbers against it. The Bajaj AMC ELSS calculator may help you:
• Turn a monthly amount into a longer-term estimate: See what regular investments could potentially add up to over time.
• Compare SIP and lumpsum routes: Understand how the investment amount and method affect the estimate.
• Explore different scenarios: Change the period or assumed return to see how the result changes.
• Separate investment from potential gain: View how much you would contribute and how much of the projected value comes from the assumed return.
• Get an indicative tax-saving estimate: Understand the approximate tax-saving amount, subject to your tax regime and applicable conditions.
The calculator is an aid, not a prediction tool. It may provide only an indicative picture.
The ELSS return calculator has the following practical advantages:
• Quick calculations: It can estimate the potential future value without requiring manual calculations.
• Easy comparisons: Users can compare different investment amounts, periods and assumed rates.
• Simple inputs: Most calculators require only a few details.
• Separation of amounts: It may show the invested amount and estimated potential gain separately.
• Scenario planning: Users can assess how changing one input may affect the estimated result.
• Free online access: The tool can generally be used without installing additional software.
The calculator’s result remains an estimate because actual ELSS potential returns depend on market performance and scheme-related factors.
Using the calculator takes only a few steps:
1. Choose whether you want to estimate a monthly SIP or lumpsum investment.
2. Enter the amount you are considering.
3. Select the investment period.
4. Add the annual rate of return you want to assume.
5. Review the invested amount, estimated potential returns, expected value and indicative tax-saving amount.
Want to explore another possibility? Change any input and the calculator will update the estimate. This lets you compare scenarios without working through the formula each time.
Once you enter the details, the calculator presents the estimate through four key figures:
• Invested amount: The total amount you would contribute through a lumpsum investment or monthly SIP.
• Estimated potential returns: The difference between the invested amount and the projected investment value.
• Expected value: The estimated total value of the investment at the end of the selected period.
• Approximate tax saved: An indicative estimate of the possible tax saving. The actual amount depends on your tax regime, taxable income, slab rate and other qualifying deductions.
Looking at these figures separately in the ELSS mutual fund calculator makes it easier to distinguish your own contribution from the potential return used in the estimate.
The formula depends on whether the investment is made as a lumpsum or through a monthly SIP.
The future value of a lumpsum investment may be estimated using:
FV=P(1+r)^n
Where:
For example, suppose ₹75,000 is invested for five years and an annual return of 11% is assumed:
FV=”₹” 75,000(1+0.11)^5
The estimated future value would be approximately ₹1,26,379. The estimated potential gain would be approximately ₹51,379.
For monthly SIP instalments made at the end of each month, the estimated future value may be calculated using:
FV=P×(1+i)^N-1┤/i
Where:
If the calculator assumes that the instalment is invested at the beginning of each month, the result is multiplied by (1+i). This means SIP estimates may differ slightly depending on the contribution timing and rounding method used by the calculator.
The figures shown are for illustrative purpose only
You can use the Bajaj AMC ELSS calculator by following these steps:
1. Choose SIP or lumpsum: Select how you plan to invest.
2. Enter the investment amount: Add your monthly SIP instalment or one-time investment amount.
3. Select the investment period: Choose how long you want the investment value to be estimated.
4. Enter an expected return: Add the annual rate you want the calculator to assume.
5. Review the results: Check the invested amount, estimated potential returns, expected value and approximate tax-saving amount.
6. Compare scenarios: Adjust one input at a time to see how the estimated results change.
The expected rate is only an assumption and does not represent an assured return. Every ELSS investment also has a three-year lock-in from its allotment date. If a period of less than three years is selected, the result is only a projection and does not represent an amount that would generally be available for redemption.
ELSS is an open-ended mutual fund category and does not provide a fixed maturity amount. In this context, “maturity amount” refers to the estimated value at the end of the period selected in the calculator.
To estimate this amount:
1. Enter the lumpsum or SIP investment.
2. Select the investment period.
3. Enter an assumed annual rate of return.
4. Review the estimated future value shown by the calculator.
The actual amount available at redemption will depend on the scheme’s NAV at that time, the number of eligible units being redeemed and applicable taxes. For a SIP, only units that have completed their individual three-year lock-in can generally be redeemed.
Riya, a salaried professional, plans to invest ₹5,000 each month in an ELSS through an SIP. She wants to estimate how her investment could potentially grow over five years. In the Bajaj AMC ELSS calculator, she enters:
• Monthly SIP amount: ₹5,000
• Investment period: Five years
• Assumed annual return: 10%
The calculator shows that Riya would invest a total of ₹3 lakh and estimates the investment’s potential future value using the assumed return. The actual value may be higher or lower because ELSS returns are market-linked.
Riya should also note that the entire investment will not become redeemable at the same time. Each monthly SIP instalment completes its own three-year lock-in from its respective allotment date.
The figures shown are for illustrative purposes only.
Some common mistakes can make the estimate less meaningful:
• Treating the result as guaranteed: The output is based on an assumed return and does not predict future performance.
• Using an aggressive return assumption: A higher assumption can substantially increase the projected value without changing the investment itself.
• Ignoring the three-year lock-in: Each investment, including every SIP instalment, has its own lock-in period.
• Treating the estimate as a maturity value: ELSS does not provide a fixed or assured maturity amount.
• Assuming the tax deduction is exclusive to ELSS: The ₹1.5 lakh limit under Section 123 is shared with other qualifying investments and payments.
• Ignoring the applicable tax regime: The deduction is generally unavailable under the default new tax regime.
• Treating the displayed tax saving as exact: The actual amount depends on taxable income, slab rate, tax regime and other deductions.
• Choosing a scheme using only the calculation: The tool does not assess a scheme’s risk, portfolio, costs or suitability.
• Ignoring capital gains tax: Completing the lock-in does not make all gains tax-free.
Every ELSS investment has a three-year lock-in from the date its units are allotted. In an SIP, each instalment receives units on a different date and therefore completes its lock-in separately.
Eligible ELSS investments may qualify for a deduction under Section 123 of the Income-tax Act, 2025, corresponding to Section 80C of the Income-tax Act, 1961. The deduction is included within the overall ₹1.5 lakh limit and depends on the investor’s tax regime and applicable conditions.
ELSS units generally cannot be redeemed before completing the three-year lock-in. In the event of the investor’s death, the nominee or legal heir may be permitted to redeem the units after one year from their allotment date, subject to the applicable rules and documentation.
The expected rate should be treated as an assumption rather than a promised return. Users may try a range of rates to see how the estimate changes. Historical returns may provide context, but they do not indicate future performance.
Locked ELSS units cannot generally be switched because a switch involves redeeming units from one scheme and investing the proceeds in another. After the lock-in ends, eligible units may be switched or redeemed. A new ELSS investment will begin a fresh three-year lock-in.
An ELSS calculator may help investors estimate how much they plan to invest. However, it cannot determine the exact tax saved unless the investor’s tax regime, taxable income, applicable slab rate and other qualifying deductions are considered.
No. Completing the three-year lock-in makes the eligible units available for redemption, but it does not make all gains tax-free. Under current tax rules, qualifying long-term capital gains from equity-oriented funds exceeding the aggregate exemption of ₹1.25 lakh in a tax year are taxed at 12.5%, subject to applicable conditions. Surcharge and cess may also apply.
An online calculator generally requires the lumpsum or monthly SIP amount, investment period and assumed annual rate of return. A more detailed tax estimate may also require the applicable tax regime, taxable income, slab rate and other qualifying deductions.
The calculator performs a mathematical calculation using the inputs provided. While the calculation may be accurate for those assumptions, the result is only an estimate. Actual ELSS potential returns depend on market conditions and scheme performance and are not guaranteed.
No. The calculator uses an assumed rate of return and does not predict or adjust for future market movements. Its output is an illustration of potential value, not an assurance of how an ELSS scheme may perform.
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The calculator alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. This tool is created to explain basic financial / investment related concepts to investors. The tool is created for helping the investor take an informed investment decision and is not an investment process in itself. Bajaj AMC has tied up with AdvisorKhoj for integrating the calculator to the website. Mutual Fund does not provide guaranteed returns. Also, there is no assurance about the accuracy of the calculator. Past performance may or may not be sustained in future, and the same may not provide a basis for comparison with other investments. Investors are advised to seek professional advice from financial, tax and legal advisor before investing in mutual funds.
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Our Investment Philosophy reflects what we, as an organisation, believe will generate a good return on equity investment for our investors in the long term. It dictates our goals and guides decision making.
Alpha (a) is a term used in investing to describe an investment strategy’s ability to beat the market.
Alpha is thus also often referred to as excess return or the abnormal rate of return in relation to a benchmark, when adjusted for risk. Essentially, it means doing better than the crowd without taking disproportionate risk.
Collecting superior information
Analysts and portfolio managers strive to collect superior information about the business and the management of the company. They try to generate superior earnings forecast and the balance strength of the company and the industry, thereby trying to 'beat the market' on information edge. This is an important source of alpha for an investor. However, over the years, retaining the information edge has become more difficult and expensive. With a whole lot of investors trying to collect superior information, how can an investor be sure to continuously have accurate and material information about the companies, ahead of others, all the time?
Processing information better
Even if you don't have material information earlier than the crowd, you can still generate better outcomes if you are able to process this information better. Investors develop models and algorithms with enhanced predictive powers to forecast the next move. Fund managers who invest based on some pure formal analytical models are quantitative managers. Here, the goal is to try and beat other investors based on the sophistication of procedures or analytics. The analytical edge can be quite useful until it gets copied by many, and then it may stop generating superior returns.
Exploiting behavioural biases
As the name suggests, this edge is achieved by superior behaviour in reacting to the inputs available to maximise alpha. Modern finance assumes people behave with extreme rationality. However, researchers in behavioural finance have shown that this is not true. Moreover, these deviations from rationality are often systematic. Behavioural managers try to exploit situations where securities are mispriced by the market because of behavioural factors. At Bajaj Finserv AMC, we endeavour to combine the best of these edges.
