DSP BlackRock Tax Saver Fund Vs Aditya Birla Sun Life Tax Relief ‘96

DSP BlackRock tax saver Fund and Aditya Birla Sun Life Tax Relief ’96 both form part of ELSS category. These schemes are also known as Tax Saving Mutual Fund. ELSS Mutual Funds are the ones that give investors the benefits of both Investing as well as a tax deduction. People investing in these schemes can claim a tax deduction of up to INR 1,50,000 under Section 80C of income tax Act, 1961. Being a tax saver scheme, they have a lock-in period of three years. Their lock-in period is the shortest as compared to other tax saver schemes. Though DSP BlackRock Tax Saver Fund and Aditya Birla Sun Life Tax Relief ’96 belong to the same category yet; there are differences in their performance, AUM, current NAV. So, let us understand the differences between both the schemes through this article.

DSP BlackRock Tax Saver Fund

DSP BlackRock Tax Saver Fund is a part of DSP BlackRock Mutual Fund. This scheme is an open-ended tax savings scheme and was launched in the year since 2007. The investment objective of the scheme is to ensure capital growth in the long-term from a Portfolio that predominantly consists of equity and equity-related instruments of various companies. Along with the capital growth, the scheme also ensures that investors can claim a tax deduction from total income.

As on January 31, 2018, the Top 5 Stocks of DSP BlackRock Tax Saver Fund included HDFC Bank Limited, ICICI Bank Limited, Tata Steel Limited, State Bank of India, and Larsen & Toubro Limited.

The scheme invests in shares across market capitalization with a preference towards Large Cap Stocks.

Aditya Birla Sun Life Tax Relief ‘96

Aditya Birla Sun Life Tax Relief ’96 is managed by Aditya Birla Sun Life Mutual Fund. The scheme was incepted on March 28, 1996. The investment objective of the scheme is to help investors in the process of wealth creation along with saving taxes. The highlights of the scheme are tax benefits under Section 80C and higher returns in line with inflation. Birla Sun Life Tax Relief ’96 uses a combination of top-down and bottom-up approach in the process of selecting stocks. It uses the top-down approach to analyze various parameters related to the macroeconomic factors, infrastructure spending, key policy changes, and so on. Additionally, the bottom-up approach seeks to identify companies with high profitability.

As on January 31, 2018, some of the top constituents that form part of Birla Sun Life Tax Relief ’96’s portfolio include Sundaram-Clayton Limited, Honeywell India Automation Limited, and Gillette India Limited.

DSP BlackRock Tax Saver Fund Vs Birla Sun Life Tax Relief ‘96

Though both the schemes belong to the same category, however, it is not compulsory that both the schemes have the same understanding. So, let us compare the schemes across various elements which are divided into four sections, namely, Basics section, Performance Section, Yearly Performance Section, and Other Details Section. These sections are discussed as follows.

Basics Section

The various comparable parameters that form part of Basics Section include Current NAV, AUM, expense ratio, Fincash Ratings, Category of the Scheme, 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.

As perFincash Rating, it can be said that both DSP BlackRock Tax Saver Fund and Birla Sun Life Tax Relief ’96 Fund are rated as 4-Stars.

The summary of this section is tabulated as follows.

Performance Section

The performance section compares the Compounded Annual Growth Rate or CAGR returns for both the schemes. These returns are compared at various time frames such as 1 Month Return, 6 Month Return, 3 Year Return, and Return since Inception. On a hindsight, it can be said that there is not much difference between the returns generated by both the schemes. At certain time intervals, the returns earned by DSP BlackRock Tax Saver Fund is higher while in others the returns of Birla Sun Life Tax Relief ’96 is higher. The Summary of this section is tabulated as follows.

Yearly Performance

The yearly performance scheme compares the Absolute Return generated by both the schemes in a particular year. In case of yearly performance, the returns of Aditya Birla Sun Life Tax Relief ’96 is higher than that of DSP BlackRock Mutual Fund. The table given below shows the summary comparison for both the schemes.

Other Details Section

This is the last section in case of comparison between two schemes. The parameters that form part of this section include Minimum SIP investment and Minimum lumpsum investment. With respect to the Minimum Lumpsum and SIP Investment, it can be said that the minimum SIP and lumpsum investment amount is the same in both the cases that is, INR 500. Moving on to the next parameter, that is, AUM, it can be said that the AUM of Birla is more than that of DSP BlackRock.

The various parameters of Other Details section are summarized in the table as follows.

DSP BlackRock Tax Saver Fund is managed solely by Mr. Rohit Singhania.

Birla Sun Life Tax Relief ’96 is solely managed by Mr. Ajay Garg.

Growth of 10k Investments over the years