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With a least lock-in period, the ELSS funds are considered best amongst traditional tax saving instruments. They help the investors to save taxes under Section 80C of Income Tax Act, 1961 up to Rs 1,50,000 per annum. So, if your goal is also wealth creation with saving taxes in the long run, you can invest in a top recommended ELSS plan, i.e., Aditya Birla Sun Life Tax Relief 96 Fund. Being a consistent performer from the past many years, it has experienced every market cycle completing more than two decades in the market. The fund has been researched over its investment style, returns, and accomplishing goals by the financial researchers of MySIPonline. The details of this research have been provided in the article below:
Investing majorly in the equity and equity-related securities, it is an open-ended scheme with a statutory lock-in period of 3 years. The fund is suitable for the investors who are seeking capital appreciation in the long-term investment horizon and have an appetite of tolerating a moderately high risk.
Sector Allocation of ABSL Tax Relief 96 Fund
As we look at the sector allocation of the ABSL Tax Relief 96 Fund growth, it has given major allocation to defensive and cyclical sectors keeping a small amount in the sensitive sector. The fund has an average market capitalisation of Rs 38,056.59 Cr as on Sept 12, 2018. This capital is invested across the full market providing the highest exposure to the large-cap companies. The fund management team is highly focused as it is investing in the stocks of only 49 companies. Its portfolio turnover ratio is just 1%, which shows that the fund manager invests in the companies having robust growth and holds them for a long period. As per the financial experts of MySIPonline, Aditya Birla Sun Life Tax Relief 96 has an ability to beat the inflation effect by providing wealth appreciation to the investors in the long run. Its twin benefits of capital generation and tax saving have made it popular amongst the investors.
Past Performance Analysis of ABSL Tax Relief 96 Fund (G)
As we can see from the table, the fund has performed efficiently in all the past years. It has beaten the benchmark and peers in order to provide the best returns in the category. If an investor has been investing in the fund since its launch, then he/she would have achieved the CAGR of 25.43%. That means if a person has invested the amount of Rs 1000 on a monthly basis through SIP mode in the fund, then the total amount invested till Sept 2018 would be Rs 2,69,000. However, the total worth of this investment would be Rs 58,37,700 as on Sept 01, 2018.
Following the combination of the top-down and bottom-up approach in selecting the stocks, Aditya Birla Sun Life Tax Relief 96 Fund G is consistently outperforming its benchmark and category’s average returns from the past many years. However, it has not managed to cap the losses in the weaker markets, but its risk measures are lower than other funds in the category. All this shows that the fund has the capability to perform the best in the long run, which helps investors in accomplishing their set goals.