Aditya Birla ELSS Funds Review
Equity Linked Savings Scheme (ELSS) are mutual funds that help you save taxes up to Rs.1.5 lakhs under Section 80C of Income Tax Act.
ELSS have a minimum lock-in period of 3 years which is far less than other investment options like Public Provident Fund (PPF) and National Savings Certificate.
Also, ELSS funds usually invest in stocks, making them appropriate for investment to create long term wealth.
Aditya Birla is one of the oldest and reputed companies offering such tax saving funds. Let’s have a look at the available ELSS funds options by Aditya Birla:
The performance of Aditya Birla Sun Life Tax Relief 96 is one best examples of the of wealth creating power of ELSS funds. The fund gave a return of almost 29% in the last year.
The fund seeks long term capital growth by investing 80% of its funds in equity instruments while the remaining in debt and money market instruments.
Its risk is lower than its benchmark, it does not carry any exit load and has outperformed its benchmark, S&P BSE 200, and peers.
The fund has given returns of 25.72%, 11.67% and 21.80% in 1Y, 3Y and 5Y periods.
Aditya Birla Sun Life Tax Relief 96 fund is amongst the best risk-return profile in ELSS category and therefore, a worthy investment.
Aditya Birla Sun Life Tax Relief 96 Details:
| AUM | Rs.4,949 Cr. |
| NAV | Rs.30.55 |
| Expense Ratio | 2.31% |
| Return Since Launch | 25.64% |
| Risk Grade | Moderately High |
2. Aditya Birla Sun Life Tax Plan
The objective of Aditya Birla Sun Life Tax Plan is to achieve long term growth of capital along with income tax relief of investment.
The fund invests around 90% of its net assets in equity and related instruments.
This fund is more than 10 years old and has lower risk as compared to its benchmark, Nifty 500.
Aditya Birla Sun Life Tax Plan does not carry any exit ratio.
The fund also has higher returns than its benchmark.
The fund has given returns of 25.39%, 11.13% and 21.02% in 1Y, 3Y and 5Y periods respectively.
This fund is suitable for creating wealth and lifestyle needs. However, investors looking for long term financial needs like retirement, children’s’ education should not invest in this fund.
Aditya Birla Sun Life Tax Plan Details:
| AUM | Rs.695 Cr. |
| NAV | Rs.38.22 |
| Expense Ratio | 2.60% |
| Return Since Launch | 20.53 |
| Risk Grade | Moderately High |
3. Aditya Birla Sun Life Tax Savings Fund
Aditya Birla Sun Life Tax Savings Fund aims to provide medium to long term growth of capital along with income tax rebate.
The fund has lower risk and higher returns than its benchmark, Nifty 500.
The fund has given returns of 26.13%, 12.11% and 18.78% in periods of 1Y, 3Y and 5Y respectively.
However, the assets under management of this fund is less than Rs.500 Cr. which is very low. Investors should try and avoid investing in this fund. There are many more options of ELSS funds that perform better than this one.
Aditya Birla Sun Life Tax Savings Fund Details:
| AUM | Rs.27 Cr. |
| NAV | Rs.32.47 |
| Expense Ratio | 2.70% |
| Return Since Launch | 15% |
| Risk Grade | Below Average |
Happy investing!
Disclaimer: the views expressed here are those of the author. Mutual funds are subject to market risks. Please read the offer document before investing.