ICICI Prudential Tax Plan: Save Tax and Also Benefit From Superior Returns

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Since launch in 1999, the ICICI Prudential Tax Plan has given a whopping return of 23 per cent. This is way higher then what one would have got in a bank fixed deposit. The year to date return has been around 50 per cent.

ICICI Prudential Tax Plan: Save Tax and Also Benefit From Superior Returns
The portfolio comprises blue chip stocks like Reliance Industries, HDFC Bank and ICICI Bank.

How is ICICI Prudential Tax Plan Rated?

ICICI Prudential Tax Plan is rated highly by Value Research Online, which has accorded it a 5-star rating. On the other hand Crisil too has accorded the scheme a rating of two closely on the heels of Axis Long term Equity, Reliance Tax Saver, which have all been rated as number one from the Equity Linked Savings Scheme category.

ICICI Prudential Tax Plan Returns

The Fund has generated a good return in the last few years. The last one year return has been close to 62 per cent, while the last two year returns has been 33 per cent and the last three year returns are close to 30 per cent. This is way higher than bank deposits and can surely be considered as excellent.

One of the reasons the fund has performed exceptionally well is the fact that it has an exceptional portfolio. The portfolio comprises stocks from various sectors which are blue chips. These include ICICI Bank, HDFC Bank and HDFC from the financial sector space and stocks like Reliance Industries, Wipro, Infosys and Cipla.

Other Important Details

NAV (Growth): Rs 263.86
NAV Dividend: Rs 24.96
Assets Rs 2376 crores
Category: Equity Linked Saving Scheme

Should you buy the ICICI Prudential Tax Plan?

Any fund will perform, especially if it has blue chip stocks, when the market performs. As we write the Sensex has scaled another peak of 28,200 points. One is not sure if there is any steam in the rally. The only problem for investors at the moment is that stocks have run-up too fast. So, if one is investing in the scheme one has to invest at a very high net asset value. What we therefore suggest is to wait for sometime and let the markets fall. This would enable you to buy into the scheme at a much lower rate. Also, buy only if you are a long term investor, as in the short term we do not expect you to make sharp returns as has been in the last one year.


Read more about: mutual funds, elss
Story first published: Friday, November 21, 2014, 10:40 [IST]
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