Axis Long Term Equity Fund Vs Aditya Birla Sun Life Tax Relief ‘96

Axis Long Term Equity Fund and Aditya Birla Sun Life Tax Relief ’96 both form part of ELSS category. ELSS or Equity Linked Savings Scheme refers to the Mutual Fund scheme that gives investors dual benefits of investing as well as tax deduction. Individuals Investing in ELSS can claim a tax deduction of up to INR 1,50,000 under Section 80C of income tax Act, 1961. Being a Tax Saving Scheme, it has a lock-in period of three years. However, as compared to other tax savings schemes, the lock-in period of ELSS is the shortest. Axis Long Term Equity Fund and Aditya Birla Sun Life Tax Relief ’96 both belong to the same category still there are differences between both the schemes. So, let us understand the differences between the schemes by comparing various parameters.

Axis Long Term Equity Fund

Axis Long Term Equity Fund is a part of Axis Mutual Fund. This open-ended ELSS scheme was launched on December 29, 2009. This scheme is suitable for an investment horizon of 3-5 years. Axis Long Term Equity Fund uses S&P BSE 200 Index as its benchmark to construct its Portfolio. This scheme invests in companies that are fundamentally strong, have high growth potentials, and sound quality of management. It focuses on building and maintaining a steady consistent and long-term portfolio with controlled downside risk. As on March 31, 2018, some of the holdings of Axis Long Term Equity Fund consisted of HDFC Limited, Kotak Mahindra Bank Limited, Bandhan Bank Limited, Info Edge (India) Limited, and Sun Pharmaceuticals Industries Limited. The fund manager managing the Axis Long Term Equity Fund is Mr. Jinesh Gopani.

Aditya Birla Sun Life Tax Relief ‘96

Aditya Birla Sun Life Tax Relief ’96 is an open-ended ELSS scheme of Birla Sun Life Mutual Fund. This Mutual Fund scheme was launched on March 29, 1996, and is an open-ended scheme. The objective of this scheme is to provide investors with an opportunity to save tax along with capital growth by investing in equity-oriented instruments. Birla Sun Life Tax Relief ’96 is solely managed by Mr. Ajay Garg. As on March 31, 2018, some of the equity holdings that were part of Top 10 holdings of Birla Sun Life Tax Relief ’96 included Sundaram Clayton Limited, Honeywell Automation India Limited, Gillette India Limited, Reliance Industries Limited, and Pfizer Limited. The scheme invests a minimum of 80% of its pooled money in equity instruments while the remaining 20% in fixed income instruments.

Axis Long Term Equity Fund Vs Aditya Birla Sun Life Tax Relief ‘96

Axis Long Term Equity Fund and Aditya Birla Sun Life Tax Relief ’96 belong to the same category of ELSS yet, there exist differences between them. These differences are with respect to various parameters such as AUM, Current NAV, and Performance. So, let us compare and understand the differences between two schemes that are divided into four sections, namely, basics section, performance section, yearly performance section, and other details section.

Basics Section

It is the first section in comparison of the two schemes. The elements forming part of the basics section include Current NAV, Fincash Ratings, scheme category, and so on. To begin with the Current NAV, it can be said that, the NAV of Axis Long Term Equity Fund is higher than the NAV of Birla Sun Life Tax Relief ’96. As on April 16, 2018, the NAV of Axis Mutual Fund’s scheme was approximately INR 31 and for the scheme of Birla Sun Life Mutual Fund was INR 42. Comparison of Fincash Ratings reveals that Aditya Birla Sun Life Tax Relief ’96 is a 4-Star Rated Fund while Axis Long Term Equity Fund is a 3-Star rated fund. With respect to the scheme category it is said that both the schemes belong to the same category, that is, Equity ELSS. The summary of basics section is as follows.

Performance Section

The performance section compares the CAGR or Compounded Annual Growth Rate returns between both the schemes. This comparison is done at different time intervals such as 6 Month Return, 3 Year Return, 5 Year Return and Returns Since Inception. The overall comparison of the performance section shows that Axis Long Term Equity Fund leads the race in almost all the time intervals. The summary comparison of the performance section is tabulated as follows.

Yearly Performance Section

It is the third section in the comparison of schemes. It compares the absolute returns of both the schemes for a particular year. With respect to absolute returns, the data reveals that for certain years Axis Long Term Equity Fund has performed better and vice versa. The summary of the yearly performance section is tabulated as follows.

Other Details Section

It is the last section in comparison of both the schemes and the parameters that form part of this section are AUM, Minimum SIP and lumpsum investment, and exit load. To begin with the minimum SIP and lumpsum investment amount, it can be said that the SIP and lumpsum amount is same for both the schemes, that is, INR 500. The comparison of AUM reveals that there is a significant difference between both the schemes. As on March 31, 2018, the AUM of Axis Long Term Equity Fund was approximately INR 15,898 Crores and of Aditya Birla Sun Life Tax Relief ’96 was INR 5,523 Crores. Comparison of the exit load reveals that both the schemes do not have any exit load as they are ELSS based schemes. The table given below shows the comparison summary of other details section.

Growth of 10k Investments over the years