Fincash » DSP BlackRock Tax Saver Vs Birla Sun Life Tax Relief
Table of Contents
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 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 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.
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.
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.
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 DSP BlackRock Tax Saver Fund
Growth
Fund Details ₹141.153 ↑ 0.02 (0.01 %) ₹17,488 on 31 Aug 24 18 Jan 07 ☆☆☆☆ Equity ELSS 12 Moderately High 1.78 2.74 0.49 3.07 Not Available NIL Aditya Birla Sun Life Tax Relief '96
Growth
Fund Details ₹60.75 ↓ -0.08 (-0.13 %) ₹16,831 on 31 Aug 24 6 Mar 08 ☆☆☆☆ Equity ELSS 4 Moderately High 1.69 2.45 -1.96 -1.1 Not Available NIL
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.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch DSP BlackRock Tax Saver Fund
Growth
Fund Details 0.4% 4.5% 20.5% 45.9% 19.3% 23.9% 16.1% Aditya Birla Sun Life Tax Relief '96
Growth
Fund Details 0.2% 3.4% 15.5% 34.1% 12.1% 15.3% 11.5%
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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.
Parameters Yearly Performance 2023 2022 2021 2020 2019 DSP BlackRock Tax Saver Fund
Growth
Fund Details 30% 4.5% 35.1% 15% 14.8% Aditya Birla Sun Life Tax Relief '96
Growth
Fund Details 18.9% -1.4% 12.7% 15.2% 4.3%
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.
Parameters Other Details Min SIP Investment Min Investment Fund Manager DSP BlackRock Tax Saver Fund
Growth
Fund Details ₹500 ₹500 Rohit Singhania - 9.14 Yr. Aditya Birla Sun Life Tax Relief '96
Growth
Fund Details ₹500 ₹500 Atul Penkar - 2.67 Yr.
DSP BlackRock Tax Saver Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹9,717 30 Sep 21 ₹16,522 30 Sep 22 ₹16,264 30 Sep 23 ₹19,618 30 Sep 24 ₹29,312 Aditya Birla Sun Life Tax Relief '96
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 30 Sep 19 ₹10,000 30 Sep 20 ₹10,435 30 Sep 21 ₹14,067 30 Sep 22 ₹13,151 30 Sep 23 ₹14,873 30 Sep 24 ₹20,560
DSP BlackRock Tax Saver Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 1.6% Equity 98.4% Equity Sector Allocation
Sector Value Financial Services 34.38% Consumer Cyclical 10.5% Technology 8.65% Industrials 8.57% Basic Materials 8.06% Health Care 7.86% Energy 6.14% Consumer Defensive 5.44% Communication Services 4.64% Utility 4.16% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 08 | 5001807% ₹1,296 Cr 7,919,371 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 16 | 5321746% ₹1,111 Cr 9,037,184 State Bank of India (Financial Services)
Equity, Since 30 Jun 20 | 5001124% ₹683 Cr 8,376,416
↑ 391,952 Infosys Ltd (Technology)
Equity, Since 31 Mar 12 | 5002094% ₹625 Cr 3,215,957 Axis Bank Ltd (Financial Services)
Equity, Since 30 Nov 18 | 5322153% ₹554 Cr 4,716,056 Power Finance Corp Ltd (Financial Services)
Equity, Since 31 Dec 22 | PFC3% ₹480 Cr 8,739,203 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Jul 19 | 5324542% ₹427 Cr 2,687,452 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Nov 22 | HINDUNILVR2% ₹406 Cr 1,461,342
↑ 29,889 NTPC Ltd (Utilities)
Equity, Since 31 Jan 19 | 5325552% ₹371 Cr 8,907,565 Samvardhana Motherson International Ltd (Consumer Cyclical)
Equity, Since 31 Dec 22 | MOTHERSON2% ₹366 Cr 18,718,335
↓ -2,054,859 Aditya Birla Sun Life Tax Relief '96
Growth
Fund Details Asset Allocation
Asset Class Value Cash 2.01% Equity 97.99% Equity Sector Allocation
Sector Value Financial Services 25.31% Consumer Cyclical 18.48% Industrials 11.41% Health Care 8.61% Basic Materials 8.32% Energy 7.79% Technology 7.71% Consumer Defensive 5.11% Communication Services 2.97% Utility 1.4% Real Estate 0.88% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | 5321747% ₹1,123 Cr 9,137,798 Infosys Ltd (Technology)
Equity, Since 30 Jun 08 | 5002096% ₹997 Cr 5,131,429 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 08 | 5001805% ₹837 Cr 5,115,495
↓ -400,000 Reliance Industries Ltd (Energy)
Equity, Since 30 Nov 21 | 5003255% ₹803 Cr 2,660,213 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Jun 08 | 5005105% ₹776 Cr 2,095,752 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Dec 22 | 5324543% ₹500 Cr 3,146,277
↓ -300,000 Fortis Healthcare Ltd (Healthcare)
Equity, Since 31 Jan 20 | 5328433% ₹461 Cr 8,360,144 TVS Holdings Ltd (Consumer Cyclical)
Equity, Since 31 Aug 23 | TVSHLTD3% ₹422 Cr 302,632
↓ -20,000 Honeywell Automation India Ltd (Industrials)
Equity, Since 30 Jun 08 | HONAUT2% ₹411 Cr 80,589 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 08 | 5322152% ₹398 Cr 3,388,737
Thus, from the above pointers, it can be said that there is a lot of difference between both the schemes though they belong to the same category. Therefore, people should be very careful before investing in a scheme by understanding its modalities completely. In addition, they should also check whether the scheme is in-line with their objectives or not. Individuals can even seek advice from financial advisors. This will help them to attain their objectives on time in a hassle-free manner.
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