Tax saving is one of the primary financial concerns of a majority of earning population. Tata India Tax Savings Fund is an Equity Linked Savings Scheme which has solved this concern efficiently and provided multiple benefits to its investors. The scheme allows tax benefits of up to Rs 1,50,000 which can be deducted from the taxable income. It is one of the most fruitful options available in the basket of tax saving options under section 80C. It has a lock-in period of 3 years and provides surplus returns.
Tata India Tax Savings Fund (G) Details
It is among the top performing ELSS funds in India and is provided by Tata Mutual Fund. It has generated an annualised return of 21.46% in the last 5 years while the benchmark and category’s average returns were 15.90% and 20.17%, respectively. It is an old scheme and was launched in March 1996 and has provided an annualised return of 19.62% since then. The rolling returns have been above benchmark and category average many times in the past. (data as of 31stJuly 2018)
The fund is managed by two senior fund managers at Tata Mutual Fund who are highly experienced and versatile for this post.
Rupesh Patel: He is a B.E. in civil engineering and MBA in Finance. He has been managing the scheme since June 2018. He was the officer of PMS in Tata AMC in 2012. He also worked at Indiariet Fund Advisors Ltd, Credit Analysis and Research Ltd. Apart from this scheme, he also manages Tata Large & Midcap Fund, Tata Infrastructure Fund, and many other good performing schemes.
Ennettee Fernandes: She is a recently appointed fund manager at Tata Mutual Fund in June 2018 who also manages Tata Retirement Savings Fund and many other schemes. She is a B.Com and PGDBM and has worked previously with Philip Capital India Pvt Ltd as a Research Analyst on FMCG sector.
Portfolio of the Fund
The fund managers invest the corpus of the fund in the equity instruments of diversified sectors and companies of different market size. Approximately 70% of the corpus is generally invested in the equity instruments of large-cap companies. 15-20% is invested in mid-cap companies, and 10-15% is invested in small-cap companies. The fund managers mostly choose banking and finance sector companies. HDFC Bank, ICICI Bank, Kotak Mahindra Bank, HDFC and Reliance are the top holders in this fund. The fund managers also influence the pharmaceuticals, oil and gas, cement, and cement sectors. (data as of 31stJuly)
The fund allows the investors to
grab the opportunity of wealth creation along with tax saving. It has
provided substantial returns to the investors and comes with a
lock-in period of 3 years. It is suitable for every earning
individual who is liable to pay tax. The fund has a moderate risk
factor due to the high influence of large-cap equity instruments.
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