Reliance Tax Saver Fund
Information about the scheme at a glance
Scheme Analysis
After a difficult patch in its initial years between 2006 and 2008, this fund has come into its own in the last five years. With a particularly good run since 2014, it has climbed to a four-five-star rating in this period. Though most funds in the ELSS category follow a multi-cap approach, Reliance Tax Saver has an even higher allocation to mid- and small-cap stocks than the category. The mandate allows a 40-60 per cent allocation to large caps. But in practice, in the last two years, the large-cap exposure has hovered between 25 and 40 per cent. The fund also sets aside 20-30 per cent of the portfolio for multinational companies with robust fundamentals. The fund follows a blend of growth and value investing.
The fund's three-, five- and even seven-year returns are ahead of the benchmark by 8-12 per cent. This is helped a great deal by the fund's runaway returns in 2014 when it made more than twice the benchmark returns. The focus on quality plays and MNCs helped it capture out-performance by this segment. The higher allocation to small and mid caps relative to the category also helped returns. In 2015, the portfolio focused on domestic recovery plays like capital goods, autos, finance, while avoiding FMCGs and non-durable. Overall, the fund has fared better in tearaway bull markets than in bearish markets.
This is an aggressive fund to own in the ELSS space. Risks could be higher due to the mid- and small-cap tilt than those in the category.
What if there’s a way out by paying lesser tax and create long-term wealth?
Consider Reliance Tax Saver Fund which can help you save tax up to Rs. 46,350*per year by investing up to Rs. 1.5 lakhs per year*. It is an ELSS with a 3-year lock-in and investments under ELSS are eligible for IT exemptions under section 80C of the Income Tax Act, 1961. The money is invested in equity markets which are likely to give better returns over a period of time.
Reliance Tax Saver Fund uses the 3-year lock-in window of the ELSS to provide a unique approach to equity investing. The lock-in creates a situation where both investor and the fund manager interests are aligned in looking at long term opportunities and ignoring short term noise.
The fund looks at companies that can sustainably grow profits and generate wealth over 3-4 years. This allows the fund manager to overlook short term volatility of the stock price as well as any temporary hiccups in the company’s earnings. Further the fund manager works completely on a bottom-up basis i.e. judging individual stocks purely on their prospects without trying to worry about the overall market direction or what the market benchmarks are doing. This has allowed the fund to create tremendous value for investors since its inception.
*Based on tax rates for AY 2015-16 for Indian residents below the age of 60. Tax savings may vary depending on applicable tax slabs and investments under Sec 80C of the Income Tax Act, 1961.
Key Features
- Open-ended equity linked savings scheme with a 3-year lock-in
- One of the lowest lock-in periods (3 years lock-in) amongst other tax saving instruments.
- Provides tax benefits of up to Rs. 46,350* under section 80C of the Income Tax Act, 1961.
- Suitable for an investment horizon of at least 3-5 years or more
This Product is suitable for Investors who are seeking*
- capital appreciation over long term.
- investment in a diversified portfolio predominantly consisting of equity and equity related instruments.
Investors should consult their financial advisers if in doubt about whether the product is suitable for them
Investment Allocation:
80% to 100% in Equities and Equity related Securities and up to 20% in Debt (Debentures, Government of India and State Government Bonds, Money Market Instruments)
Out of Equity & Equity related securities:
Large Cap Companies 25-40%
Mid Cap Companies 30-55%
Multi National Companies 20-30%
Investment Style:
The Fund Manager seeks capital appreciation over the long-term by focussing on wealth creating companies that generates return on capital across all sectors.
Type of Scheme: An Open-End Equity linked savings scheme (ELSS) with 3 year compulsory lock-in
Investment Objective: The investment objective of the scheme is to provide growth of capital plus regular dividend through a diversified portfolio of equities, fixed income securities and money market instruments.
Date of Launch of the Scheme: 21 September 2005
Fund Manager:
Mr. Ashwani Kumar Managing this fund since its inception
Benchmark: S&P BSE 100NAV As on 17 June 2016
Regular Growth Option: Rs.45.15
Regular Dividend Option: Rs.9.54
Fund Size (AUM - Asset Under Management) Rs.4980 Crores as on 31 May 2016
Portfolio Turnover: 0.40 Times
Volatility Measures (3 Years)
Standard Deviation: 6.84%
Beta: 1.31
Sharp Ratio 0.22
Expense Ratio: 2.01%
Investment Limit:
Minimum Investment (First Time): Rs.5000/-
Maximum Investment: No Limit
Additional Investment: Rs.1000/-
Load:
Entry Load: NIL
Exit Load: NIL.
SIP Performance - If you had invested Rs.10000/- per month as on 17th June 2016
| 1 Year | 3 Year | 5 Year | 10 Year | Since Inception | |
| Total Amount invested (Rs.) | 120,000 | 360,000 | 600,000 | 1,200,000 | 1,290,000 |
| Total Value as on 17/06/2016 | 124,430 | 476,188 | 989,892 | 2,821,230 | 3,191,760 |
| Returns | 0.59% | 26.23% | 17.07% | 16.09% | 15.06% |
| S&P BSE100 | 1.21% | 12.36% | 8.75% | 11.01% | 10.99% |
Scheme Details at a Glance:
| Basic Details | ||
|---|---|---|
| Fund House: | Reliance Mutual Fund | |
| Launch Date: | Sep 21, 2005 | |
| Benchmark: | S&P BSE 100 | |
| Riskometer: | Moderately High | |
| Risk Grade: | High | |
| Return Grade: | High | |
| Turnover: | 21% | |
| Type: | Open-ended | |
| Investment Details | ||
|---|---|---|
| Return since Launch: | 15.06% | |
| Minimum Investment (R) | 500 | |
| Minimum Addl Investment (R) | 500 | |
| Minimum SIP Investment (R) | 1,000 | |
| Minimum No of Cheques | 6 | |
| Minimum Withdrawal (R) | 500 | |
| Minimum Balance (R) | 500 | |
| Exit Load (%) | 0 | |
Performance
| YTD | 1-Month | 3-Month | 1-Year | 3-Year | 5-Year | 10-Year | |
|---|---|---|---|---|---|---|---|
| Fund | -0.45 | 3.91 | 10.77 | 0.59 | 26.23 | 17.07 | 16.09 |
| S&P BSE 100 | 2.30 | 3.37 | 9.00 | 1.21 | 12.36 | 8.75 | 11.01 |
| Category | 1.78 | 2.75 | 10.27 | 3.88 | 20.70 | 13.32 | 12.86 |
| Rank within Category | 68 | 14 | 28 | 54 | 6 | 2 | 2 |
| Number of funds in category | 78 | 80 | 80 | 72 | 68 | 34 | 24 |
As on Jun 17, 2016
| Best & Worst Performance | Best (Period) | Worst (Period) | ||
|---|---|---|---|---|
| Month | 30.64 | (May 11, 2009 - Jun 10, 2009) | -34.31 | (May 12, 2006 - Jun 13, 2006) |
| Quarter | 72.48 | (Mar 09, 2009 - Jun 10, 2009) | -35.57 | (Jan 04, 2008 - Apr 04, 2008) |
| Year | 115.40 | (Mar 09, 2009 - Mar 11, 2010) | -53.63 | (Dec 12, 2007 - Dec 11, 2008) |
| Risk Measures (%) | Mean | Std Dev | Sharpe | Sortino | Beta | Alpha |
|---|---|---|---|---|---|---|
| Fund | 24.56 | 23.73 | 0.82 | 1.50 | 1.32 | 10.95 |
| S&P BSE 100 | 12.00 | 15.68 | 0.44 | 0.83 | - | - |
| Category | 19.31 | 16.64 | 0.86 | 1.47 | 1.01 | 7.75 |
| Rank within Category | 6 | 2 | 33 | 31 | 2 | 13 |
| Number of funds in category | 71 | 71 | 71 | 71 | 71 | 71 |
As on May 31, 2016
| Trailing Returns (%) | YTD | 1-Day | 1-W | 1-M | 3-M | 6-M | 1-Y | 3-Y | 5-Y | 7-Y | 10-Y |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Fund | -0.45 | 0.08 | 0.45 | 3.91 | 10.77 | 1.50 | 0.59 | 26.23 | 17.07 | 18.17 | 16.09 |
| S&P BSE 100 | 2.30 | 0.28 | -0.09 | 3.37 | 9.00 | 3.76 | 1.21 | 12.36 | 8.75 | 9.44 | 11.01 |
| Category | 1.78 | 0.23 | 0.12 | 2.75 | 10.27 | 3.12 | 3.88 | 20.70 | 13.32 | 13.99 | 12.86 |
| Rank within Category | 68 | 71 | 12 | 14 | 28 | 58 | 54 | 6 | 2 | 1 | 2 |
| Number of funds in category | 78 | 80 | 80 | 80 | 80 | 74 | 72 | 68 | 34 | 33 | 24 |
As on Jun 17, 2016
| |||||||||||||||
| Portfolio Aggregates | |||
|---|---|---|---|
| Fund | Benchmark | Category | |
| Average Mkt Cap (Rs Cr) | 20,327.77 | 162,436.76 | 44,121.56 |
| Giant (%) | 26.24 | 72.88 | 43.43 |
| Large (%) | 19.71 | 22.57 | 20.05 |
| Mid (%) | 38.92 | 4.55 | 28.97 |
| Small (%) | 15.13 | - | 7.91 |
| Tiny (%) | - | - | 0.13 |
| Value Research Fund Style | |
|---|---|
 |
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
As on May 31, 2016
Source: ValueResearchOnline.com
Do you wish to invest in this scheme?
- Please download CAN (Common Account No.) Registration Form it is fillable form, please fill up details, take printout, make signature/s.
- Please download PayEezz Mandate Form take printout, make signature/s.
- Please download KYC Form take printout, affix photo at the space provided for make signature across the photo (half outside and half on photo), make second signature at the space provided for at the bottom in square.
- Attach self attested copies of PAN Card & Address Proof and one cancelled cheque.
If you are KYC compliant existing investor in Mutual Funds:
- Please download CAN (Common Account No.) Registration Form it is fillable form, please fill up details, take printout, make signature/s.
- Please download PayEezz Mandate Form take printout, make signature/s.
- Attach self attested copies of PAN Card & Address Proof and one cancelled cheque.
If you need any assistance for filling above forms please call on us: 02355-251089 Mobile: 9422430302 Email: tfscontactus@gamil.com
Send all as above to by courier or post:
Thakur Financial Services
275, Manisha, Near ICICI Bank,
Kaviltali, Chiplun-415605,
Dist: Ratnagiri
We will do the rest on your behalf and once your one time registration process is completed and one time bank mandate is registered with your bank, you can call on us for discussing the suitable mutual fund scheme for you on the basis of your income, age, capacity invest, your risk tolerance capacity, investment horizon, your goals, reason for investment etc., and then appropriate scheme will be suggested to you, and we shall be able to do the investment (lump-sum or SIP) without any form, cheque, signature i.e. totally paperless.
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