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- Rated 4.5 stars
- Aditya Birla Sun Life Tax Relief 96 Fund
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Aditya Birla Sun Life Tax Relief 96 Fund seeks long-term capital growth and will invest approximately 80 per cent of its assets in equity, while the balance would be a invested in debt and money market instrument.
It was converted to an open-ended scheme with effect from July 1999. A combination of top down & bottom up approach id followed in the stock selection process.
The scheme also offers deductions on the investment under Section 80 C of the Income Tax Act, 1961. Additionally, it aims to periodically distribute income as per availability of surplus which can be distributed.
Presented below is a comprehensive review of Aditya Birla Sun Life Tax Relief 96 Fund. It offers all the relevant information needed by you so that you can make an informed decision about whether to buy, sell, or hold this fund.
Basic costs and other information
Aditya Birla Sun Life Tax Relief 96 Fund was launched on Mar 29, 1996. It has continued to provide returns for nearly 20 years and hence has remained popular with investors. As of Jul 31, 2017, this equity-focused fund has assets of INR 3,756 crores. The minimum required investment for lump sum investment route is INR 500, and also INR 500 in case of SIP or Systematic Investment Planning method.
The expense ratio as of Jul 31, 2017 is 2.31 percent which is on the higher side. The Fund has a lock in of 3 years and cannot be exited before this period.
Ajay Garg is the fund manager since October 2006. Mr. Garg is B.E (Electronics) and MBA (Finance). Prior to joining Birla Sun Life AMC in 2003 he has worked with Birla Sun Life Securities Ltd.
Allocation of the fund
As of July 31, 2017, the fund’s allocation stands as 98.98 percent in equities and 1.19% in Debt Instruments.
As of July 31, 2017, the top 6 sectors that the fund’s portfolio focuses on include Banking/Finance (20.71%), Automobile (18.16%), Services (10.64%), Healthcare (9.58%), and FMCG (9.33%).
As of Sep 8, 2017, Aditya Birla Sun Life Tax Relief 96 Fund has produced an 11.109 percent return per annum on investment in the last 10-year period. This shows that the fund’s yields was higher than the category average of 10.93 percent during the same period. From the time of launch the fund has delivered 25.75 percent per annum returns.
In the past 1, 3, and 5 years, the fund has shown 17.41, 17.2, and 22.49 percent returns. The 3-year returns of the fund are thus more than 3% points higher than the category returns. On a 5-year period, the performance of the fund vis-à-vis the category is also higher by about 3% point.
If the topmost holdings are taken into consideration, then it can be said that the Aditya Birla Sun Life Tax Relief 96 Fund heavily leans towards the banking and finance sector. As per data of the past 3 years, the fund’s standard deviation, i.e., the volatility of the returns of the fund vis-à-vis its average, is 13.59% as of 31st July 2017. This is lower than the category average which is 14.2% for the same period.
When the returns of Aditya Birla Sun Life Tax Relief 96 Fund are compared with its peers during the past 5 year period, then at 22.49 percent returns it has done better than most of the other ELSS Funds .
Investors currently have many different options of tax saving instruments. Mutual funds via ELSS or equity linked savings scheme offer an option to benefit from growth potential associated with equity markets while availing of tax advantages. It may be noted that investments in ELSS are eligible for tax benefits of up to INR 1, 50,000 annually from gross total income.
As mentioned above, the objective of Aditya Birla Sun Life Tax Relief 96 Fund is to provide the gain of investing in a portfolio made of equities, while getting tax deductions on such investments. Thus, investors who want to gain the dual benefit of investment in equity markets along with saving taxes should go for this scheme.
Should I sell, buy, or hold?
Aditya Birla Sun Life Tax Relief 96 Fund has consistently delivered good performance across the time period. Also the fund manage is good and has excellent track record. Invest in the fund for good returns in future
Excellent Fund Size
Excellent Fund House
Excellent Fund Manager
High Expense Ratio