Aditya Birla Sun Life Tax Relief ’96 Vs Aditya Birla Sun Life Tax Plan

Aditya Birla Sun Life Tax Relief ’96 and Aditya Birla Sun Life Tax Plan both these schemes are managed by Aditya Birla Sun Life Mutual Fund. They belong to ELSS category. These schemes offer investors the benefits of investing as well as tax deductions. ELSS schemes are the ones who invest a major proportion of their corpus in equity and equity-related instruments. These schemes are considered to be a good option for medium and long-term investments. Being an ELSS, individuals can claim tax Deduction of up to INR 1,50,000 under Section 80C of income tax Act, 1961. Though both Aditya Birla Sun Life Tax Relief ’96 and Aditya Birla Sun Life Tax Plan belong to the same category and fund house, yet there are numerous differences between them. So, let us understand the differences between these schemes by comparing various parameters.

Aditya Birla Sun Life Tax Relief ‘96

Aditya Birla Sun Life Tax Relief ’96 is a part of Aditya Birla Mutual Fund. It is an open-ended ELSS scheme which was launched in March 1996. The scheme aims for Capital growth in the long-term. It aims to achieve this goal by Investing the pooled money in equity and equity-related instruments and giving investors benefits of tax deductions. The scheme uses S&P BSE 200 Index as its benchmark to construct its Portfolio. Based on the scheme’s objectives, Aditya Birla Sun Life Tax Relief ’96, invests around 80-100% percent of its corpus in equity instruments and the remaining in fixed Income instruments. As on March 31, 2018, some of the top constituents of the scheme’s portfolio included Honeywell Automation India Limited, Sundaram Clayton Limited, Gillette India Limited, and Pfizer Limited. The fund manager managing Aditya Birla Sun Life Tax Relief ’96 is Mr. Ajay Garg.

Aditya Birla Sun Life Tax Plan

Aditya Birla Sun Life Tax Plan also belongs to the same fund house that is, Aditya Birla Mutual Fund. The scheme was launched on February 16, 1999, and aims for capital appreciation in the long-term. The scheme adopts a bottom-up strategy of investing. The Mutual Fund scheme aims to identify companies that have a strong competitive position in good businesses and have quality management. Aditya Birla Sun Life Tax Plan is also solely managed by Mr. Ajay Garg. Some of the top holdings of Aditya Birla Sun Life Tax Plan as on March 31, 2018, included Johnson Controls, GlaxoSmithKline Pharmaceuticals Limited, Thomas Cook (India) Limited, and Biocon Limited.

Aditya Birla Sun Life Tax Relief ’96 Vs Aditya Birla Sun Life Tax Plan

Though both the schemes belong to the same fund house, yet there are differences between them in terms of current NAV, performance, AUM, and other parameters. So, let us have an understanding of these parameters that are divided into four sections, namely, basics section, performance section, yearly performance section, and other details section.

Basics Section

The primary section in comparison of both the schemes is basics section. Some of the comparable parameters that form part of the basics section include Current NAV, Fincash Ratings, and scheme category. To begin with the Current NAV, it can be said that there exists a difference between NAV of both the schemes. As on April 12, 2018, the NAV of Aditya Birla Sun Life Tax Plan was approximately INR 39 while of Aditya Birla Sun Life Tax Relief ’96 was approximately INR 31. Comparison of scheme category reveals that both the schemes belong to the same category, that is, Equity ELSS. With respect to Fincash Ratings, it can be said that both the schemes are 4-Star rated schemes. The summary of the basics section is tabulated as follows.

Performance Section

Comparison of Compounded Annual Growth Rate of CAGR Returns is done in the performance section. These CAGR returns are compared at various intervals such as 1 Month Return, 6 Month Return, 3 Year Return, and 5 Year Return. The comparison of performance section reveals that there is hardly any difference between both the schemes. The summary of performance section is as shown in the table given below.

Yearly Performance Section

It is the third section in comparison of both the schemes. Yearly performance section compares the absolute returns generated by both the schemes for a particular year. In case of yearly performance also, it can be said that there is not much difference between the returns generated by both the schemes. However, in many instances, Aditya Birla Sun Life Tax Relief ’96 leads the race marginally. The table given below summarizes the comparison of yearly performance for both the schemes.

Other Details Section

It is the last section in comparison of both the schemes. The comparable parameters in this section include AUM, Minimum SIP and lumpsum investment, and exit load. To begin with the AUM, we can see a significant difference between both the schemes. As on March 31, 2018, the AUM of Aditya Birla Sun Life Tax Relief '96 is approximately INR 5,523 Crores while of Aditya Birla Sun Life Tax Plan is approximately INR 683 Crores. The minimum SIP and lumpsum amount in case of both the schemes is similar that is, INR 500. Even, there is no exit load for both the schemes as they belong to ELSS category and have a lock-in period of 3 Years. The table given below compares the other details section.

Growth of 10k Investments over the years