personal finance

Aditya Birla Sun Life Tax Relief 96 mutual fund: A consistent high performer


ET Wealth collaborates with Value Research to analyse top mutual funds.

We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

Aditya Birla Sun Life Tax Relief 96 Fund

How has the fund performed?
With a 10-year return of 19.23%, the fund has outperformed both the benchmark index (16.78%) and the category average (16.87%).

The fund has comfortably beaten both the index and category average over the past decade.

Growth of Rs 10,000 vis-a-vis category and benchmark

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Annualised performance (%)

The fund’s outperformance is visible across 3- and 5-year time periods

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As on 24 Oct 2018
Yearly performance (%)

The fund has been fairly consistent in delivering alpha in recent years.

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As on 24 Oct 2018


BASIC FACTS
Date of launch: 29 Mar 1996

Category: Equity

Type: ELSS

Average AUM: Rs 6627.64 crore

Benchmark: S&P BSE 200 Total return index

WHAT IT COSTS
NAVs *

Growth option: Rs 28.48

Dividend option: Rs 144.99

Minimum investment: Rs 500

Minimum SIP amount: Rs 500

Expense ratio** (%): 2.26

Exit load: Nil

*As on 24 Oct 2018

**As on 30 Sep 2018

Fund Manager: Ajay Garg

Tenure: 12 Years

Education: B.E, MBA

Where does the fund invest?

The fund takes large active positions in its top picks

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How risky is it?

The fund’s risk-return profile is much superior to many of its peers.

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Wherever not specified, data as on 30 Sep 2018. source: Value Research


Should You Buy?
This tax-saving fund is market cap neutral, with no bias towards any particular section of the market. Compared to peers, the fund has a higher exposure to the mid-cap segment, which reflects in its portfolio’s average market cap— half of its category average.

The funds’ approach is aggressive, as the fund manager does not believe in index hugging. The fund takes large positions in its top bets, most of which are on stocks outside the benchmark index. The focus remains on companies boasting superior quality—with ability to sustain competitive advantages over longer periods. The emphasis on quality is visible in the slant towards MNC stocks. The fund has been a consistent outperformer over the years; its superior riskreturn profile makes it a worthy pick in this space.





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