Let’s figure out one of the best performing tax-saver funds – Nippon India Tax Saver (Reliance Tax Saver). Talking about the time-period, it has given consistent results.
The Objective of Nippon India (Reliance) Tax Saver Fund
The objective of the fund is to generate long-term capital-appreciation from a portfolio that is invested pre-dominantly in equity & equity-related instruments.
| Performance | 1-Year | 3-Year |
| Absolute Returns in % | 37.29 | 13.38 |
Source: moneycontrol.com
Review – Nippon India (Reliance) Tax Saver Fund
It has been noticed that the performance of this ELSS category fund has been consistently beaten its benchmark & category over multi-trailing time-period generating 37.29% returns for 1-year and 13.38% returns for 3-year period respectively. (as mentioned in the table above).
Not to miss, it also follows a blend of growth & value investing and seeks to invest in different sectors that are expected to perform better over the long-term.
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With the passing of a few key reforms by the Government, the domestically oriented sectors such as Industrials, Consumer Discretionary, and Financial account for almost two-thirds of the portfolio whilst the export-oriented sectors such as Information technology and Healthcare remains the least. Whilst picking the stocks, the fund manager attempts to add companies with strong growth prospects that are being traded at a substantial discount to their intrinsic value. He (the fund manager) attempts to balance both the valuation and growth aspects whilst investing.
A Look
ELSS: Fund has 98.48% investment in the Indian stocks of which 58.65% is in largecap stocks, 22.62% is in midcap stocks, & 14.25% in smallcap stocks.
Suitable For: Investors who are looking to invest for at-least 3 years & interested in additional benefits of Income Tax saving apart from high-returns. Also, these investors should be ready for 3-year lock-in-period and moderate losses.
Scheme Objective
The objective is to generate long-term capital-appreciation from a portfolio that is invested pre-dominantly in equity & equity-related instruments.
A Go Through – Scheme Details of Nippon India (Reliance) Tax Saver
| Fund Manager | Ashwani Kumar |
| Launch Date | 21st Sept 2005 |
| Expense Ratio | 2.08% as declared on 31st Oct 2019 (The category average is 2.27%) |
| Benchmark | S&P BSE 100 TRI |
| Minimum SIP Amount | INR 500 |
| Type | Open-ended Fund |
Source: moneycontrol.com
Tax Rate
Coming with a lock-in-period of 3 years, the investor cannot sell his/her investments for 3 years from the purchase date. LTCG tax will be applicable when the investor plans to sell the investments after 3 years. Currently, the tax rate is 10% only if your LTCG tax exceeds 1 lakh in a financial year. Any surcharge/cess is not included. But you can claim tax-deduction on your taxable income under Section 80C of the Income Tax.
Top 10 Stocks in Portfolio
| Stock Invested In | Sector |
| State Bank of India | Banks |
| Tata Motors Ltd. | Utility Vehicles/Passenger |
| ICICI Bank Ltd. | Banks |
| Larsen & Toubro Ltd. | Engineering, Construction, Designing |
| Tata Steel Ltd. | Steel |
| TVS Motor Company Ltd. | Motor Cycles/Scooters |
| ABB India Ltd | Power Equipment |
| Honeywell Automation India Ltd. | Industrial Electronics |
| Hindustan Petroleum Corporation Ltd. | Refineries/Marketing |
| Ashok Leyland Ltd. | Commercial Vehicles |
*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.