Birla Sun Life Tax Plan - Invest Online
Birla Sun Life Tax Plan, The open ended mutual fund was launched in on Feb16, 1999 and is benchmarked against BSE SENSEX. It is managed by Ajay GARG since 2011.
Majority of the assets are invested in large and mid cap stocks. Only 13.58% of the portfolio is exposed to the small stocks. As a result, the mutual fund provides stabilized returns from long term perspective.
Performance:
For the past 15 years, the fund has provided very high and modest returns to the investors. On the 3 years parameters, the fund has shown 24.22% growth when compared to the 13.57% of the benchmark. Even the figure beats the category growth rate of 20.34% for 3 year period. The fund has delivered an amazing performance in the past 3years. The fund operates on the flexi cap strategy wherein the assets are quickly moved to large or mid cap stocks based on the growth in the market.
Comparison with peers:
Birla sun life tax plan is ahead of Franklin India tax shield fund as far as the growth rates of one and three years are concerned. It has outgunned the Franklin fund by 4% on an annual basis and on 3 year parameter it is ahead by 1%. Due to amazing performance in the past 3 years the fund has enhanced its overall growth rate and is billed as the four star mutual fund.
Portfolio:
The average market capitalization is about 28,544.87 CRORE which is less than the category figure of 40,364.27 CRORES.
As far as the investment break up is concerned 31.92% is invested in the giant stocks whereas large stocks occupy 21.28% of the assets. Mid cap stock exposure is larger at 33.06%. Significant assets are invested in the small cap stocks however the fund only invests in engineering and pharma startup with strong quality base. Sector wise allocation of the fund indicates that it is more inclined towards financial, financial, automobile, Engineering and services sector.
Some of the top holdings are mentioned below:
- Honey well automation
- Sundaram Clayton
- Bayer Cropscience
- ICRA
- Kotak Mahindra Bank
- MRF
- PFIZER
The fund performed wonderfully well when the market was on a bull run however during the bearish phase, it suffered the most. Since 2011, the composition has changed with more stress on large and mid cap segment.
Risk factor:
Standard deviation for the fund is 14.49% which is little bit on the higher side as compared to the 12.93% of the benchmark figures. It understates the fact that stock prices are more vulnerable to fluctuation however the deviation of the fund is lower than that of the category figures. Sharpe ratio is extremely high at 2.05 which is far higher than 0.40 of BSE SENSEX and 0.83 of category.
Conclusion:
The fund is ideal for the investors who are looking to maximize their returns on equity stocks and also save taxes. The above mentioned data shows that it has performed well in recent times with limited volatility in the price of equity.
Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015
1. BNP Paribas Long Term Equity Fund
2. Axis Tax Saver Fund
3. IDFC Tax Advantage (ELSS) Fund
4. ICICI Prudential Long Term Equity Fund
5. Religare Tax Plan
6. Franklin India TaxShield
7. DSP BlackRock Tax Saver Fund
8. Birla Sun Life Tax Relief 96
9. Reliance Tax Saver (ELSS) Fund
10. HDFC TaxSaver
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Good Returns by Investing in ELSS Mutual Funds Online
Invest in Tax Saver Mutual Funds Online
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
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