I invested in Quant ELSS Tax Saver Fund in April 2024, the investment is in negative as on today - 09 Jun 25. What should I do ?

Ans: You’ve taken an active step by starting your ELSS journey.
That itself deserves appreciation.
Now let us review and respond to your concern in full detail.

Understanding the Nature of ELSS Funds
Equity Linked Savings Schemes are equity mutual funds.
They invest majorly in stocks and equity-related instruments.
They have a mandatory lock-in period of 3 years.
So, any investment made in April 2024 can’t be withdrawn before April 2027.

They also offer Section 80C tax benefits.
Maximum tax benefit is Rs. 1.5 lakh in a year.
They are useful for long-term wealth and tax savings.

However, equity funds always carry short-term market volatility.
Negative return after 14 months is not unusual.
It does not mean the fund is bad.

Why You See Negative Returns Today
You invested in April 2024.
Today it is June 2025.
So, the investment is just 14 months old.

Markets have been volatile in this period.
Corrections are common after high growth.
Equity returns never come in straight lines.

Short-term loss in equity is temporary.
In long-term, markets recover and grow.

Even the best performing funds face drawdowns.
This is part of the growth journey.

What Should You Do With This ELSS Fund Now?
There are three key reasons not to exit now:

Lock-In Rule

ELSS can’t be redeemed before 3 years.

You don’t have a choice to exit today.

This lock-in helps prevent panic selling.

Tax Saver Discipline

Tax saving goals must not be disturbed.

ELSS is meant for long-term investing.

Treat it like a fixed deposit of 3 years or more.

Negative Return is Temporary

Do not evaluate an equity fund in 1 year.

A good fund may perform well in 5–7 years.

Short-term fall is not a reason to worry.

So, do not panic or stop your SIPs.
This is part of the equity investing process.
Give time and discipline a chance to work.

How to Monitor Your ELSS Going Ahead
Don’t check value too frequently.
It creates emotional reaction and doubt.

Instead, follow this review plan:

Review only once a year.

Compare 3-year rolling return with category average.

If your fund is below average consistently for 3 years, consider exit.

Exit only after lock-in ends.

Till then, keep investing in regular plans.
Don’t shift to direct funds.

Why You Must Avoid Direct Mutual Fund Plans
Many investors get attracted to direct plans.
They appear to have lower expense ratios.
But hidden costs are higher.

Disadvantages of direct funds:

No fund selection support.

No asset rebalancing advice.

No emotional guidance during market fall.

No help with tax planning or goal setting.

Without expert guidance, mistakes go unnoticed.
Investing with a CFP via regular plan offers real value.

Regular plan gives access to:

Timely review

Goal mapping

Exit timing advice

Behavioural coaching during fall

So even if return is 1% less on paper,
actual gains are more in regular plan with right direction.

Future Approach with ELSS and Mutual Funds
Continue your ELSS investment yearly for tax savings.
Don’t switch funds often.

Select one or two ELSS schemes only.
Avoid spreading across too many funds.

Link each investment with one goal.
For example:

ELSS SIP for child’s education

Flexicap SIP for retirement

Hybrid SIP for vacation or second income

Stick to SIP mode.
It brings cost averaging benefit.
Don’t try to time the market.

Equity Investing Requires Patience and Discipline
You are only 14 months into your investment.
Equity may fall before it rises again.
But over 7–10 years, it outperforms all other options.

In ELSS, three things matter most:

Right fund selected

Staying invested for minimum 5–7 years

Not interrupting SIP during correction

If these three are followed,
you will benefit with:

Tax savings

Capital growth

Wealth creation

Avoid reacting emotionally to market noise.

How to Strengthen Your Investment Strategy Now
Here are steps to build a long-term portfolio:

Define your financial goals clearly

Match funds to the right goals

Review asset allocation yearly

Maintain emergency fund

Complete health and term insurance

Avoid real estate and endowment products

Avoid direct mutual funds

Always consult a Certified Financial Planner

With these steps, your money gets direction and balance.

Don’t Consider Index Funds or ETFs
You may hear about index funds or ETFs from others.
They are low-cost funds that copy market index.
But they carry limitations.

Disadvantages of index funds:

They do not protect in falling market

No fund manager to change stocks

No chance to outperform the market

High exposure to overvalued sectors during bubbles

In falling markets, index funds fall more.
Active funds adjust portfolio to reduce damage.
They can rotate to better sectors.

So always choose actively managed funds for better safety and returns.

Final Insights
Your decision to invest in ELSS is a good one.
Short-term loss is not the end.
It is a small dip in a long journey.
Do not panic and redeem.
Let the lock-in complete.

Stay invested through regular plans.
Track annually.
Invest through Certified Financial Planner for direction.
Build your portfolio slowly with balance and discipline.

Stay calm, stay focused, and stay invested.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment