Best Performing Tax Saving Mutual Fund for 2016-17 - DSP BlackRock
Nutan Gupta
Last Updated: 23rd January 2017 - 04:30 am
With the financial year end coming closer, a lot of people are seeking financial advice from tax planners and chartered accountants in order to save as much tax as they can. Equity linked savings scheme (ELSS) is considered to be the best tax-saving mutual fund and it has given exceptional returns over the years. While there are a lot of tax-saving mutual funds available in the market, only a few have managed to attract the attention of investors by giving higher returns. One such fund is DSP BlackRock Tax Saver Fund.
Launched in the year 2007, DSP BlackRock Tax Saver Mutual Fund has given returns of 13.83% since its inception. The primary objective of this scheme is to generate medium to long-term capital appreciation from a diversified portfolio that is substantially constituted of equity and equity related securities of corporates, and to enable investors avail of a deduction from total income.
DSP BlackRock Tax Saving Mutual Fund has outperformed its benchmark Nifty 500 and its category returns over a 7-year period.
| Trailing Returns (%) | ||||
|---|---|---|---|---|
| 1-year | 3-year | 5-year | 7-year | |
| Fund | 18.35 | 22.68 | 21.44 | 13.38 |
| Nifty 500 | 11.82 | 14.41 | 13.63 | 7.20 |
| Category | 12.16 | 19.59 | 17.32 | 10.90 |
*Source: Ace equity
The fund is managed by Rohit Singhania and the total assets under management of the fund stand at Rs. 1,494 crore as on 31st December, 2016. Majority of the fund’s corpus i.e. around 75% is invested in large-cap stocks. As far as the sector allocation is concerned, the fund has a higher exposure to the banking sector. The fund comprises a total of 68 stocks in its portfolio. There is no exit load that one has to bear if he chooses to redeem his investments.
Conclusion
While DSP BlackRock Tax saving Mutual Fund has been performing consistently over the last few years, it is advisable for investors to consult their financial advisors before making any investment decision. It is very important that the objective of fund should align with individual risk profiles.
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Sachin Gupta
5paisa Research Team
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