Reliance Tax Saver Fund is a time-tested tax saver mutual fund which made its debut in September 2005. The scheme featured an AUM of Rs. 9,614 crore as on February 28, 2019. It is designated as an Equity-linked Savings Scheme (ELSS) and thus any investment in it qualifies for a tax deduction of up to Rs. 1.5 lakh annually under Section 80C of the Income Tax Act.
Key Statistics of Reliance Tax Saver Fund Performance*
|Fund Performance||1 Year||3 Year||5 Year|
*Data Source – Pulse Labs. All data as of February 28, 2019.
Key Details of Reliance Tax Saver Fund
The following are some of the key details of the Reliance Tax Saver Fund as of February 28, 2019:
- Inception Date – September 2005
- AUM – Rs. 9,614 crore
- Fund Manager – Mr. Ashwani Kumar (since August 2005)
- Benchmark – S&P BSE 100 (TRI)
- Expense Ratio – 1.25% (Direct)
Reliance Tax Saver Fund Performance vs Benchmark*
|Instrument||1 Year||3 Year||5 Year|
|Reliance Tax Saver Fund||-19.69%||10.80%||15.51%|
|Benchmark (S&P BSE 100 – TRI)||2.52%||17.41%||13.54%|
*All data as of February 28, 2019.
Reliance Tax Saver Fund has generated attractive returns of 10.80% and 15.51% over the previous 3 year and 5 year periods respectively. In the 5 year period, the scheme has succeeded in outperforming its benchmark return of 13.54% by a margin of nearly 2% (as of February 2019). The scheme is mandatorily required to invest a minimum 80% of its assets in equity/equity related instruments and is a great tax-saver fund which is capable of giving good returns while undertaking a moderate amount of risk.
Asset Allocation of Reliance Tax Saver Fund
The following is a list of the top sectors that the equity portion of the Reliance Tax Saver Fund is invested in as of February 28, 2019:
|Investment Sector||% of Assets Allocated|
|Industrial Capital Goods||17.44%|
*Data as of February 28, 2019.
Reliance Tax Saver Fund is a relatively aggressive tax-saving scheme which has given higher weightage to consumption-driven sectors than defensive sectors in its portfolio. As of February 2019, the top 5 sector holdings of the scheme are Banking (20.95%), Industrial Capital Goods (17.44%), Automobiles (11.10%), Petroleum Products (9.81%) and Ferrous Metals (8.15%).
Top Individual Holdings of Reliance Tax Saver Fund
The following are the top 10 individual equity investments of the Reliance Tax Saver Fund:
|Investment Name||Weight in Portfolio (%)|
|State Bank of India||7.30%|
|Honeywell Automation India||4.55%|
|TVS Motor Company||4.03%|
*Data as of February 28, 2019.
Investment Facts of Reliance Tax Saver Fund
- Reliance Tax Saver Fund is a veteran Equity-Linked Savings Scheme (ELSS) which was launched nearly 14 years ago in September 2005.
- An investment made in Reliance Tax Saver Fund qualifies for a tax deduction of up to Rs. 1.5 lakh annually under Section 80C of the Income Tax Act.
- The scheme has featured an AUM of Rs. 9,614 crore as on February 28, 2019.
- The scheme has generated impressive returns of 10.80% and 15.51% over the previous 3 year and 5 year periods respectively.
- It is a relatively aggressive ELSS which has invested more of its assets in cyclical sectors than defensive sectors.
- It is an ideal ELSS for investors seeking a tax saving scheme which has the potential of giving high returns for a moderate amount of risk.
Best Tax Saver Mutual Fund Schemes
|Best ELSS Funds for Tax Saving|
|ICICI Prudential Long Term Equity Fund|
|Motilal Oswal Long Term Equity Fund|
|Axis Long Term Equity Fund|
|SBI Magnum Tax Gain|
|Aditya Birla Sun Life Tax Relief 96|