September 22, 2020

Save tax with the best DSP tax saver fund

DSP Tax Saver Fund is one of the ELSS funds that have the best performance, i.e., the equity-linked saving scheme that is currently on the market. This fund is one of the few funds that produce stellar returns in both bull and bear market cycles. ELSS funds provide tax benefits up to ₹ 150,000 from the total income of the assessee/investor per year. The scheme is available under Section 80C of the Income Tax Act, 1961.

ELSS funds also come with a lock-in period of 3 years, which enables investors to share in the long-term growth potential of the stock markets, too, among other tax-saving options, three years in the lowest lock-in era. 

The objective of the DSP tax saver fund direct growth

The primary investment objective of the scheme is to generate medium to long term capital appreciation from a diversified portfolio.

The scheme plans such a portfolio in which it adequately constitutes the equity and equity-related securities of the corporate. Further, the scheme aims to encourage investors to avail of the deduction in the total income, as is allowed from time to time under the Income Tax Act, 1961.

DSP tax saver fund direct growth details:

  • AUM- ₹ 3982.5 Cr. (as on Jan 31, 2018)
  • NAV- ₹ 46.086 (as on Feb 23, 2018)
  • Minimum SIP Investment- ₹ 500
  • Expense Ratio- 2.5%
  • Returns Since Launch- 15.36% (as on Jan 31, 2018)
  • Returns 1 Year- 15.07%
  • Portfolio Turnover Ratio- 0.78 (last 12 months)
  • Beta- 1.01
  • Standard Deviation- 14.35%
  • Risk Grade- Moderately High Risk
  • Benchmark- NIFTY 500 TRI
  • Exit Load- NIL
  • Fund Manager- Rohit Singhania

The DSP tax saver fund direct growth is an equity-linked investment fund that has generated returns of around 15 percent since its inception. The fund is over 11 years old, indicating that throughout the bull and bear markets, the fund has been a steady and outstanding performer.

The 2.5 percent expense ratio is slightly higher. The fund is a member of the Moderately High-Risk category. The higher return rate, however, is equilibrium. Unlike some other funds in this category, the fund has no exit load.

It has a minimum SIP amount of about 500, which allows investors to invest from time to time, usually weekly, including small amounts. The benchmark for that particular fund is the NIFTY 500 TRI.

Funds managed in the 3Y and 5Y results offered returns of 12.01 percent and 19.99 percent to their benchmark index, respectively. Sharp has a ratio of 0.58 in the fund.

Conclusion: You can invest in a good scheme. You do not need to think about its underperformance in the short term. Many mutual equity funds, including ELSS funds, have had a harder time than the previous year. Continue your investment and monitor the success of the plan.

The scheme is to generate medium-term capital appreciation from a diversified portfolio, which is sufficiently formed by the corporate’ equity and equity-related securities, and to allow investors to take a deduction from the total income To enable, permission is granted from time to time under the Income Tax Act, 1961.