Fincash » Axis Long Term Equity Vs Nippon India Tax Saver Fund
Table of Contents
Axis Long Term Equity Fund and Nippon India tax saver Fund (Formerly known as Reliance Tax Saver Fund), both belong to the category of ELSS or Equity Linked Savings Scheme. These schemes give individuals the benefits of both Investing as well as a tax Deduction. Individuals investing in ELSS can claim a tax deduction to a maximum limit of INR 1,50,000 under Section 80C of income tax Act, 1961.
Being a Tax Saving Scheme, these funds have a lock-in period of three years which is the lowest as compared to other tax savings scheme. Though both Axis Long Term Equity Fund and Reliance Tax Saver Fund (ELSS) belong to the same category yet; there exists a difference between both of them in terms of Current NAV, AUM, performance, and other factors. So, let’s compare and analyze both the schemes with respect to various parameters.
Axis Long Term Equity Fund is an open-ended ELSS scheme which was launched in December 2009. This scheme uses S&P BSE 200 Index to construct its Portfolio. Its objective is to generate Capital growth over long-term by investing in a diversified portfolio which has a significant proportion equity and equity-related instruments. As on January 31, 2018, some of the top constituents of Axis Long Term Equity Fund include HDFC Limited, Bajaj Finance Limited, Kotak Mahindra Bank Limited, and Maruti Suzuki India Limited. The proportion of large-cap shares in case of Axis Long Term Equity Fund ranges between 50-100% while Midcap share’s proportion will not be more than 50%. Axis Long Term Equity Fund is fund is managed solely by Mr. Jinesh Gopani. This scheme is suitable for an investment horizon of 3-5 years.
Nippon India Tax Saver Fund (Formerly known as Reliance Tax Saver Fund) is managed by Nippon India Mutual Fund and is an open-ended tax saving scheme. The goal of this scheme is to generate capital appreciation in the long-term. This objective is accomplished by investing a significant proportion of its corpus in equity and equity-related instruments. Nippon India/Reliance Tax Saver Fund tries to maintain a balance between large cap and mid-cap companies in its portfolio and aims to invest in companies having high growth potential over the medium term. As on January 31, 2018, some of the company’s shares that form the top 10 holdings of Reliance Tax Saver Fund include State Bank of India, TVS Motor Company Limited, Tata Motors Limited, ICICI Bank Limited, and ABB India Limited. The fund manager who oversees the functioning of Reliance Tax Saver Fund is Mr. Ashwani Kumar.
From October 2019, Reliance Mutual Fund has been renamed as Nippon India Mutual Fund. Nippon Life has acquired majority (75%) stakes in Reliance Nippon Asset Management (RNAM). The company will continue to run its operations without any change in structure and management.
Though both Axis Long Term Equity Fund and Reliance/Nippon India Tax Saver Fund ELSS are of the same category, nevertheless; there exists a difference between them with respect to various attributes. Some of these parameters include AUM, Current NAV, performance, and much more. So, let us compare and understand the differences between both the schemes based on various parameters that are divided into four sections, namely, Basics Section, Performance Section, Yearly Performance Section, and Other Details Section.
Basics Section compares the various parameters such as Current NAV, Fincash Rating, scheme category, and much more. To begin with the scheme category, it can be said that both the schemes belong to the same category that is, Equity ELSS. The next category is Fincash Rating. Based on Fincash Ratings both the schemes have the same rating that is, 3-Star. Comparison of Current NAV shows that Reliance Tax Saver Fund (ELSS) leads the race. As on February 27, 2018, The NAV of Nippon India Tax Saver Fund (ELSS) is approximately INR 63 while of Axis Long Term Equity Fund is approximately INR 41. The summary of the basics section is shown in the table given below.
Parameters Basics NAV Net Assets (Cr) Launch Date Rating Category Sub Cat. Category Rank Risk Expense Ratio Sharpe Ratio Information Ratio Alpha Ratio Benchmark Exit Load Nippon India Tax Saver Fund (ELSS)
₹83.8562 ↑ 0.74 (0.89 %) ₹11,451 on 30 Apr 23 21 Sep 05 ☆☆☆ Equity ELSS 16 Moderately High 1.8 0.02 -0.01 0.91 Not Available NIL Axis Long Term Equity Fund
₹69.8018 ↑ 0.93 (1.36 %) ₹29,968 on 30 Apr 23 29 Dec 09 ☆☆☆ Equity ELSS 20 Moderately High 1.61 -0.38 -1.43 -7.04 Not Available NIL
The performance section compares the Compounded Annual Growth Rate (CAGR) returns of both the schemes at different time intervals. These intervals include 3 Month Return, 1 Year Return, 5 Year Return, and so on. The performance section reveals that though there is not much difference between the returns generated by both the schemes. However, in almost many instances the returns generated by Axis Long Term Equity Fund is higher as compared to returns generated by Nippon India Tax Saver Fund. The summary of performance section is tabulated as follows.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Nippon India Tax Saver Fund (ELSS)
4.8% 5.9% 0.9% 16.4% 26.7% 8% 12.8% Axis Long Term Equity Fund
6.5% 12% 4.2% 15.4% 17.4% 9.9% 15.6%
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The yearly performance section compares the absolute returns of both the schemes for a particular year. This section shows that in certain instances the performance of Nippon India/Reliance Tax Saver Fund (ELSS) is better and vice versa. The table given below summarizes the comparison of yearly performance section.
Parameters Yearly Performance 2022 2021 2020 2019 2018 Nippon India Tax Saver Fund (ELSS)
6.9% 37.6% -0.4% 1.5% -20.7% Axis Long Term Equity Fund
-12% 24.5% 20.5% 14.8% 2.7%
This is the last section in comparison of both the schemes. The various elements that are compared in this section include Minimum SIP and Lumpsum Investment, AUM, and Exit Load. With respect to the Minimum SIP and lumpsum investment, the amount is same for both the schemes that is INR 500. The comparison of AUM of both the schemes reveals that there is a difference between both of them. As on January 31, 2018, the AUM of Reliance Tax Saver Fund (ELSS) is approximately INR 10,811 crores and of Axis Long Term Equity Fund is INR 16,517 crores. Also, both the schemes do not carry any exit load as they are ELSS. The other details section is tabulated as follows.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Nippon India Tax Saver Fund (ELSS)
₹500 ₹500 Rupesh Patel - 1.83 Yr. Axis Long Term Equity Fund
₹500 ₹500 Jinesh Gopani - 12.09 Yr. Nippon India Tax Saver Fund (ELSS)
Growth of 10,000 investment over the years.
Date Value 31 May 18 ₹10,000 31 May 19 ₹9,957 31 May 20 ₹6,696 31 May 21 ₹11,640 31 May 22 ₹12,774 31 May 23 ₹14,371 Axis Long Term Equity Fund
Growth of 10,000 investment over the years.
Date Value 31 May 18 ₹10,000 31 May 19 ₹10,502 31 May 20 ₹9,379 31 May 21 ₹14,629 31 May 22 ₹14,278 31 May 23 ₹15,484 Nippon India Tax Saver Fund (ELSS)
Asset Class Value Cash 0.78% Equity 98.91%
Equity Sector Allocation
Sector Value Financial Services 39.38% Consumer Cyclical 11.76% Industrials 10.64% Basic Materials 9.56% Technology 5.47% Consumer Defensive 5.01% Health Care 4.8% Utility 4.73% Energy 4.02% Communication Services 2.4% Real Estate 1.14%
Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 28 Feb 15 | ICICIBANK
9% ₹991 Cr 10,800,000 HDFC Bank Ltd (Financial Services)
Equity, Since 29 Feb 20 | HDFCBANK
9% ₹975 Cr 5,780,000 Infosys Ltd (Technology)
Equity, Since 31 Mar 20 | INFY
5% ₹626 Cr 4,999,296 Axis Bank Ltd (Financial Services)
Equity, Since 30 Apr 20 | AXISBANK
5% ₹550 Cr 6,400,000 State Bank of India (Financial Services)
Equity, Since 31 Dec 13 | SBIN
5% ₹549 Cr 9,500,000 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 May 20 | HDFC
4% ₹472 Cr 1,700,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Mar 20 | RELIANCE
4% ₹460 Cr 1,900,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 May 18 | LT
4% ₹426 Cr 1,800,000 NTPC Ltd Shs Dematerialised (Utilities)
Equity, Since 28 Feb 19 | NTPC
2% ₹279 Cr 16,200,000 Tata Motors Ltd (Consumer Cyclical)
Equity, Since 31 Jul 21 | TATAMOTORS
2% ₹267 Cr 5,500,000 Axis Long Term Equity Fund
Asset Class Value Cash 0.47% Equity 99.53%
Equity Sector Allocation
Sector Value Financial Services 35.12% Consumer Defensive 15.36% Basic Materials 13.54% Technology 8.88% Consumer Cyclical 7.87% Health Care 6.83% Communication Services 5.43% Utility 4.81% Industrials 1.69%
Top Securities Holdings / Portfolio
Name Holding Value Quantity Bajaj Finance Ltd (Financial Services)
Equity, Since 30 Sep 16 | BAJFINANCE
9% ₹2,682 Cr 4,271,253
Avenue Supermarts Ltd (Consumer Defensive)
Equity, Since 30 Apr 17 | DMART
8% ₹2,429 Cr 6,915,757
Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 May 11 | KOTAKBANK
8% ₹2,341 Cr 12,078,031
Tata Consultancy Services Ltd Shs Dematerialised (Technology)
Equity, Since 30 Apr 17 | TCS
7% ₹2,230 Cr 6,926,334
Nestle India Ltd (Consumer Defensive)
Equity, Since 31 Aug 14 | NESTLEIND
7% ₹2,174 Cr 998,853 Housing Development Finance Corp Ltd (Financial Services)
Equity, Since 31 Jan 10 | HDFC
6% ₹1,673 Cr 6,025,986
Info Edge (India) Ltd (Communication Services)
Equity, Since 31 May 14 | NAUKRI
5% ₹1,627 Cr 4,309,035
Pidilite Industries Ltd (Basic Materials)
Equity, Since 30 Nov 14 | PIDILITIND
5% ₹1,575 Cr 6,508,669 Torrent Power Ltd (Utilities)
Equity, Since 30 Jun 13 | TORNTPOWER
5% ₹1,440 Cr 26,119,453 Divi's Laboratories Ltd (Healthcare)
Equity, Since 30 Nov 17 | DIVISLAB
4% ₹1,339 Cr 4,098,254
Thus, the above pointers show that both the schemes differ on various parameters. As a consequence, individuals should be careful while choosing any schemes. They should understand the modalities of a scheme completely before investing in it. In addition, they can also consult a financial advisor if required. This will help them to ensure that their objectives are safe and your objectives are accomplished on time.
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