In this article, we are going to review “IDFC Tax Advantage Fund “. It’s mainly an ELSS category fund. This fund helps you in saving tax on the principle as well as the profits you earn. An investor can invest in order to save up to Rs 1.5 lakhs under 80C to be eligible for tax benefit.
Age of the Fund:
The fund was launched on 26th December 2008. It is more than a decade old scheme, which is a testimony of the confidence of the investor. A decade is quite a long time to provide you a glimpse about the bulls and bear cycles it has faced.
Return and Risk Adjusted Return:
Every investment motive is to get maximum benefit in terms of returns without taking much risk. The fund has beaten its benchmark in the long term, especially 3 to 5 years. As every ELSS Funds come with a lock in period of 3 years. The risk associated with these funds is moderately high.
(source: Money Control)
Expense Ratio of IDFC Tax Advantage Fund:
The expense ratio plays a crucial role in selecting a fund. It is the money to be paid to the fund manager, maintenance fees as well as marketing fees. Lower the expense ratio then better will be the fund returns. The expense ratio of this fund is 1.11%.
Let’s compare the expense ratio with other funds:
| Fund Name | Expense Ratio |
| Reliance Tax Saver Fund | 1.98% |
| DSP BlackRock Tax Saver Fund | 2.52% |
| Kotak tax saving | 2.38% |
| Aditya Birla Sun Life Tax relief 96 | 2.28% |
Top Holding of the Fund:
Let’s look at the top holding of the firm or the stock they invested in as per money control:
| Company | Sector |
| ICICI Bank LTD | Bank |
| State Bank of India | Bank |
| HDFC Bank LTD | Bank |
| Axis Bank LTD | Bank |
| Reliance Industries LTD | Refineries |
| Infosys LTD | Computer- Software |
| Future Retail LTD | Retailing |
| L&T LTD | Engineering, designing, construction
|
*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.