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Nippon India Tax Saver Review

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Nippon India (Reliance) Tax Saver Review

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 ForInvestors 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.

Rating: 5.0/5. From 8 votes.
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