elsstax

Are DSP Blackrock and Reliance Tax Saver Fund good to get started with?

I'm planning I invest through SIP in DSP Blackrock and Reliance Tax Saver fund. Can anyone let me know if this is a good choice to start with?

Asked
Ankit

DSP Blackrock Taxsaver Fund and Reliance Taxsaver Fund are ELSS (Equity Linked Savings Scheme) which provides tax benefits to the investors.

DSP BlackRock Fund has following features:

·     Age is more than 10 years old

·     3 year, 5 year and 10 year returns are better than the benchmark

·     Exit Load is zero

·     Risk is higher compared to the benchmark

·     1 year returns are lower than the benchmark

·     More than 70% investment is in large cap fund

·     Major fund has been allocated in Financial services, followed by Energy

Reliance Taxsaver Fund has following features:

·     Age is more than 10 years old

·     1 year, 3 year, 5 year and 10 year returns are higher than the benchmark

·     Exit Load is zero

·     Risk is higher compared to the benchmark

·     Lower expense ratio

·     Approx 60% investment is made in large cap

·     Major fund has been allocated to Financial Services and Industrial Manufacturing, followed by Automobile.

A comparison of both the funds have been given above. Moreover both the funds can be preferred by investor looking to get the deduction of INR 150000 under Section 80C of the Income Tax Act.

Pijush Kanti Biswas

Reliance tax saver fund and DSP Blackrock tax saver fund are some of the top-rated Equity-linked saving schemes (ELSS) plans in the industry.

To start investing with ELSS mutual fund is good idea considering:

  • They are diversified mutual funds and invest into equities.
  • smart returns potential currently
  • Give tax-benefit on investment by claiming tax deduction of up to ₹1.5 lakh under section 80 C.
  • They have a lock-in period of 3 years from the date of investment.

Pros of investing in Reliance tax saver fund and DSP Blackrock tax saver fund are:

  • Age is more than 10 years
  • Lower expense ratio
  • 3Y Returns are higher than the benchmark
  • 5Y Returns are higher than the benchmark
  • 10Y Returns are higher than the benchmark
  • Exit load is zero

Happy Investing!

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