Reliance Tax Saver Fund is among top performing equity linked saving scheme (ELSS) mutual fund. The scheme is an offer by one of the best mutual fund company of India, Reliance mutual funds. The fund manager manages this scheme aggressively. The money you invest in this scheme will be lockin for 3 years. This fund allocates 60% in large-cap, 25-30 % in Midcap and 15% in small cap. Out of this 30 % is invested in multinational companies. It is a diversified multi-cap fund.
Sector-wise allocation for Reliance Tax Saver Fund
The fund had allocated around 50% of its corps in four sectors. Banks (21.80) is followed by Industrial capital goods (16.35%), then Auto (11.83%) and ferrous metal (8.76%). As the economy grows in long run so will the fund’s performance is expected to grow.
Top 10 holdings of Reliance Tax Saver Fund
Total stocks in this scheme are 60-65 scrips. Top holdings are SBI (9.95%), Tata Steel (8.06%), TVS (6.08%), Tata Motors (5.75%), ICICI Bank (3.94%), Honeywell automation (3.74%), Ambuja Cement (3.47%), ABB India (3.47%) and etc.
The launch date for this long-term capital growth scheme was 21 September 2005. You can start investing in this Reliance ELSS with INR 500 only and in multiples of INR 500 thereafter. There is no entry or exit load for this scheme. This scheme invests in equity and equity-related securities and is managed by Mr. Ashwani Kumar since its inception.
Reliance Tax Saver Fund investment rational
The ELSS scheme maintains a steadiness between mid and large-cap companies. Mr. Aswani makes it invest in companies that have potential to become the market leader in next couple of years. One nice thing is that it does not invest the bulk of its corps in more than 2-3 sector at a time. The scheme also tries its best allocation in multinational companies to provide stable growth of its portfolio.
Reliance Tax Saver Fund returns analysis
As of 31, May 2018, the return since inception is 14.72%. Last one year return is 0.03%, last 5 years return is 19.95%. All returns are shown in CAGR( Compounded Annual Growth Rate). INR 10000 investment made 6 years ago would have more than double return now. This hints at good long-term prospects of the scheme.
Reliance tax saver fund is a promising ELSS mutual funds scheme. Though investment in mutual funds is subject to risk, however in long run they provide good returns. You can track the reliance scheme here. And if you have any query relating to investments in mutual funds don’t forget to register with Money Dial. We provide trusted financial advisors at your doorstep and for free.