Investment Objective
DSP ELSS Tax Saver Fund, formerly known as DSP Tax Saver Fund, aims to generate medium to long-term capital appreciation from a diversified basket constituting of equity and equity related instruments of corporates and to allow investors to avail tax deduction from their total income, as allowed under the Income Tax Act, 1961.
Investment Strategy
- DSP ELSS Tax Saver Fund primarily invests in equity and equity related securities.
- The fund maintains a well-diversified equity portfolio consisting of large cap, mid cap and small cap companies, which provides a combination of growth and relative stability.
- It follows a combination of value and growth style of investing using the GARP (Growth at Reasonable Price) approach.
- It uses a mix of top-down and bottom-up approaches for sector allocation.
Who Should Invest
- Investors looking to save on tax by investing in mutual funds with a statutory 3-year lock-in period for long-term capital growth.
- Those with patience and mental resilience to stay invested for a decade or more.
- Those who consider market falls as good opportunities to invest more at lower valuations.
- Individuals having a higher risk appetite, who can tolerate short-term fluctuations in returns due to the inherent volatility of equity markets.