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Reliance Tax Saver (ELSS) Fund
The Reliance Tax Saver (ELSS) by RelianceMF was launched on Sep 21, 2005. Reliance AMC is one of the top 5 AMCs in India. The primary objective of the open-ended scheme is to create wealth over the long-term. The significant part of the Corpus is invested in equity and equity related instruments.
Mr. Ashwani Kumar has been the fund manager since its beginning. He has managed this fund to sail through the ups and downs of the market and yet earn annualized returns of 4.60% for 3-years investment and 8.10% over 5-years. The AUM or the fund size of this fund has crossed over Rs. 10,700 crores, till 28th June 2019. The NAV (Net Asset Value) is Rs. 54.43.
(The figures given here are dated 28th June 2019, for updated information, please visit our website Wealthbucket)
It seeks to maintain a balance between large-cap, mid-cap investments. With the significant portion being invested in high conviction mid-cap companies. Tries to invest in companies with the potential of high growth over medium-term (2-3 years). The chosen Benchmark is S&P BSE-Sensex 100.
The minimum SIP investment is Rs 500.
Investors who are looking for tax saving options and can stay invested for at least 3-years should consider this plan.
The Fund seeks to maintain a balance between large-cap companies and mid-cap companies holdings. A large part of the outstanding equity is invested in mid-cap companies with high potential.
Annualized Returns
5-Year Returns: WealthBucket
| Returns | 1-Year | 3-Year | 5-Year | 10-Year | Since Inception |
|---|---|---|---|---|---|
| -0.78% | 4.60% | 8.10% | 14.97% | 13.05% |
Important Details
Riskometer of reliance tax saver: WealthBucket
| NAV | Rs. 54.43 |
|---|---|
| AUM | Rs. 10,760 Cr |
| Minimum SIP Amount | Rs. 500 |
| Minimum Amount to Invest | Rs. 500 |
| Risk | Moderate-High |
| Expense Ratio | 1.98% |
| Launch Date | 21st September 2005 |
| Benchmark | S&P BSE 100 TRI |
| Type | Open-Ended Fund |
| Exit Load | Nil |
Portfolio Holdings of Reliance Tax Saver ELSS
| Companies | Portions |
|---|---|
| State Bank of India | 8.43% |
| Tata Steel Limited | 6.36% |
| Infosys Limited | 5.05% |
| ICICI Bank Limited | 5.03% |
| ABB Limited | 4.79% |
| Honeywell Automation India Limited | 4.78% |
| Tata Motors Limited | 4.27% |
| TVS Motor Company Limited | 3.86% |
| Bank of Baroda Limited | 3.63% |
| Larsen & Toubro Limited | 3.47% |
Taxation of Reliance Tax Saver
You have to hold your investments in this fund for 3 years from the purchase date. Long Term Capital Gain (LTCG) Tax will be applicable when you redeem your investments after 3 years. The current tax rate is 10% when your total LTCG is more than Rs.1 lakh in a financial year. Any surcharge/cess is not included.
You can claim a deduction on your taxable income u/s 80c of the Income Tax Act 1961, for your principal invested in this fund. (Currently, these tax deductions have a capping of 1.5 lakh per annum).
Advantages
- With a 10-year return of 14.97%, the Scheme has outperformed both its benchmark index (11.83%) and the category average (12.66%). This shows it is an aggressive Scheme in the ELSS category.
- It saves Tax u/s 80C
- Although it has performed moderately during some periods since its inception. Still, it has shown some really good returns during other time zones. Averaging out the performance. And retaining the rank of not less than 4-star.
- The plan allows you to invest via SIP mode. This is, of course, an obvious benefit. Investors without having a lump sum ready, benefit from this option. Calculate your future wealth with our SIP Calculator.
- Reliance Tax Saver Fund has beaten both its benchmark, as well as the category in 1- and 3-year periods. The scheme is racing ahead of its category average even in the 5-year horizon.
- No entry load or exit load is charged on this plan.
Disadvantages
- The Risk-Adjusted Capital Ratio is lower as compared to the category.
- Some of the other funds in the benchmark have shown better performance and returns.
- Redemptions are permitted only after the lock-in period of 3-years has expired.
- Expense Ratio, at 1.98%, is quite high.
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