How Reliance Tax Saver Fund Provides the Best Tax Saving Option? |
Posted: July 24, 2018 |
Reliance Tax Saver Fund (G) at a Glance This ELSS fund has a high-risk oriented portfolio; hence it can provide high returns but is highly volatile. This fund has generated an annualised return of 19.9% in the last five years which is much above its category average and benchmark. S&P BSE 100 TRI is the benchmark of this fund which has shown 15.36% annual return in 5 years while its average category return is 18.50%. The recent performance of the fund has not been as expected and the fund has been unable to sustain with the benchmark. This short-term volatility has provided an excellent opportunity to the SIP investors to buy more units at a lower rate as the fund is expected to get back on track in the upcoming years. (data as of 18th July 2018) Fund Manager The fund is managed by Mr Ashwani Kumar who is a senior fund manager at Reliance Mutual Fund. He has been managing Reliance Tax Saver Fund since its inception in September 2005. He is a B.Sc and MBA in Finance. He was the Head of Business Development at Reliance Power Limited and Senior Research Analyst at Zurich AMC. He is the equity specialist and manages prominent funds like Reliance Vision Fund, Reliance Capital Builder Fund, etc. Portfolio Selection The fund manager invests the majority of the corpus in equity instruments of large-cap companies. More than 50% of the corpus is invested in large-cap companies. 25-35% is allocated in mid-cap companies, and a comparably small amount of 10-20% is invested in equity instruments of small-cap companies. The sectors targeted by the fund manager are banking, automotive, engineering, cement, metals etc., with the finance sector having more than 22% of the corpus. Top holders of the fund are SBI Bank, Tata Steel, TVS Motor, ICICI Bank which combined possess 33% of the corpus. Reliance Tax Saver Fund Growth is suitable for those investors who seek to create wealth along with the purpose of tax saving and can take high risk for substantial returns. The lock-in period of 3 years also embarks a financial discipline and makes tax saving a wealth generating task. Up to Rs. 1.5 Lakh can be reduced from the taxable income if invested in this fund and a good wealth can be created on the invested amount. Connect with the official website of MySIPonline to invest in this scheme, and enjoy the successful tax savings along with wealth creation in the most beneficial manner.
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