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This Tax Saver ELSS Fund Is Good For SIP, Given 12.59% Returns In 3-Years

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The Equity Linked Savings Scheme, or ELSS, is a category of mutual fund that is eligible for tax benefits under Section 80C of the Income Tax Act of 1961. Because of its higher yields and the shortest lock-in period among tax-saving investments, the ELSS has grown in popularity in recent years. These funds offer a bunch of benefits such as Tax Benefits, the Shortest Lock-in period, the Highest return among other tax-saving instruments, and the SIP option. In this article, we have picked one such fund that has given close to 50% absolute returns in 5-years.

 

Aditya Birla Sun Life Tax Relief 96 - Direct Plan-Growth

Aditya Birla Sun Life Tax Relief 96 - Direct Plan-Growth

This is a tax saver ELSS fund from the Aditya Birla Sun Life Mutual fund on December 30, 1995. It is an open-ended highly risky equity fund. It was converted to an open-ended scheme with effect from July 1999. The fund is a medium-sized fund of its category.

The Asset under the management of this fund is Rs 13735.6 crore. The NAV declared on 09th May 2022 is Rs 41.45. It has an expense ratio of 0.94%, which is below its category average expense ratio when compared. 

The fund's benchmark is NIFTY 500. This fund is rated by CRISIL given 1-star. For investment in this via lump-sum payment, or SIP the minimum amount required is Rs 500, As this fund is an ELSS tax saver fund, it comes with 3-years of the mandatory lock-in period. It has a Rs 0 Exit load.

This scheme seeks long-term capital growth and will invest approximately 80 per cent of its assets in equity, while the balance would be invested in debt and money market instruments. A combination of top-down & bottom-up approaches will be followed in the stock selection process.

Absolute And Annualised Returns
 

Absolute And Annualised Returns

Lump-Sum Investment Returns

Since its launch, it has delivered 14.13% average annual returns.

TenureAbsolute ReturnsAnnualised Returns
1 Year0.92%0.92%
2 Year43.33%19.69%
3 Year28.85%8.81%
5 Year49.10%8.31%
Since Inception244.27%14.13%

SIP Returns

In last 1 year, the fund has given negative SIP returns on the investment.

TenureAbsolute ReturnsAnnualised Returns
1 Year-6.79%-12.35%
2 Year4.68%4.47%
3 Year12.59%7.86%
5 Year20.01%7.23%
Portfolio

Portfolio

The fund is invested in equities to the tune of 99.25 per cent, with 50.29 per cent in large-cap companies, 30.87 per cent in mid-size stocks, and 10.82 per cent in small-cap stocks.

The financial, healthcare, energy, services, and capital goods sectors make up the majority of the fund's holdings. When compared to other funds in the category, it has taken less risk in the financial and healthcare sectors.

Reliance Industries Ltd., Honeywell Automation India Ltd., Housing Development Finance Corporation Ltd., ICICI Bank Ltd., and Kotak Mahindra Bank Ltd. are among the top holdings of the fund.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.

Story first published: Tuesday, May 10, 2022, 21:01 [IST]
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