Tata India Tax Savings Fund Review
Let’s review one of the ELSS funds – Tata India Tax Savings Fund. It comes with the dual concept – Helps in saving your tax and the profits you earn. They come under section 80C of the Income Tax Act & you can invest upto INR 1.5 Lakh for the tax benefit eligibility.
Age of the Fund
Launched in the year 1996, March; Tata India Tax Savings is an old scheme as compared to other schemes in ELSS category. Not to miss, the age of a mutual fund is vital because it tells you how many bull cycles & bear cycles it has survived.
The objective is to provide long term capital gains (LTCG) along with tax-benefits to unitholders.
Returns & Risk
The main objective of investing is to set good and valuable returns. Tata India Tax Savings Fund has beaten the benchmark constantly in 6 months, 1-year, and 3-years. Since, it’s launch in Oct 2014, the returns for 5-years and 10-years cannot be compared.
However, the risk is higher as compared to the category; the risk-adjusted returns are better. Risk can be measured by Standard Deviation (SD) whilst the Sharpe ratio tells us the risk-adjusted returns.
Let’s talk about Expense Ratio of Tata India Tax Savings Fund
First, let’s understand what is an expense ratio?
The expense ratio is the fees that fund houses charge for managing your investment(s). It includes money paid to fund manager, marketing fees, and maintenance fees. Talking about the expense ratio of Tata India Tax Savings Fund, it is on the higher side i.e. 2.92% as compared with the other funds. Typically, the expense ratio is high when AUM is very low.
Top 10 Holdings of Tata India Tax Savings Fund
|ICICI Bank Ltd.||5.07%|
|HDFC Bank Ltd.||3.76%|
|Yes Bank Ltd.||3.34%|
|Future Retail Ltd.||3.14%|
|Future Consumer Enterprise Ltd.||2.85%|
|Avenue Supermarts Ltd.||2.57%|
|Tata Motors Ltd.||2.44%|
|Tata Steel Ltd.||2.41%|
|Interglobe Aviation LLtd.||2.17%|
|HCL Technologies Ltd.||2.09%|
*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.