We always think of saving the taxes when the financial year end come or when we have to file the Income Tax Return. But why wait so long when the Reliance Tax Saver (ELSS) Fund has so much to offer you. The fund landed in the financial market in the year 2005 and has been working exceptionally well in offering the investors benefit under Section 80C of Income Tax Act, 1961.

With a significant asset allocation in the large-cap companies, it tends to be a differentiate fund from its category. Let’s have a glance at the Reliance ELSS Fund, knowing its ins and outs as under:

An Outline of Reliance Tax Saver Fund

Reliance Tax Saver Fund is an open-ended scheme, with a minimum lock-in period of 3 years. The fund has the AUM of Rs 9,996 Cr as on May 31, 2018. It is offering the growth option under the direct and regular plan.

The fund has an average market capitalization of Rs 30,105.12 as on June 20, 2018. This capital is invested 27.79% in giant companies, 32.01% in large-cap companies, 25.06% in mid-cap companies and 15.14% in small-cap companies.

The fund portfolio comprises 99% of equity and equity-related securities and 1% in debt securities. It has invested 22.87% in banking & finance, 17.50% in automotive, and the rest in other sectors.

The fund maintains the balance between large and mid-cap companies, and also put the small per cent of the portfolio is invested in contrarian calls.

Past Performance Analysis:

Save Taxes for Lifetime with Reliance Tax Saver Fund

Reliance Tax Saver G fund has provided the trailing returns of 20.26% in the past five years and 15.55% in the past seven years. The fund has underperformed in the past few years, but then again gained the higher return track to beat its benchmark and peers. As in the year 2015, after providing the abounding returns, the fund has performed negatively. Though the fund has incurred a minor loss in the bearish markets than its benchmark.

Fund Manager:

The fund is managed by Mr Ashwani Kumar since 2005. He is the senior fund manager of Reliance MF who is looking after the equity funds of the fund house. He has a rich experience of 18 years in the fund management.

Mr Kumar picks the stocks of such companies which have strong growth prospects. He follows both the growth and value investing approach for selecting any stock or company. The fund has outperformed the category and benchmark both due to his excellent investment strategies. He attempts to put the balance on a macro basis in the portfolio, by allocating the assets in Domestic, Consumption, and Defensive sectors.

Suitability:

As the Reliance Tax Saver growth fund is an equity-oriented scheme, it is suitable for the investors, who wants to take the deduction under Section 80C of IT Act, 1961 up to the amount of Rs 1,50,000. At the same time, the fund offers the long-term capital appreciation to the investors, who have the appetite of tolerating moderately-high risk.

It has provided the returns of 14.55% since its launch. The NAV of Reliance Tax Saver Growth fund is Rs 56.5061 as on June 20, 2018. You may invest in the fund with a minimum SIP of Rs 500 per month. The best part of the fund is that it has neither entry load nor exit load, although you have to put your money in the fund for a minimum period of three years.

Author's Bio: 

The author is a financial analyst working with MySIPonline. She performs continuous research on various ELSS funds to provide the best of her knowledge to investors.