DSP BlackRock Tax Saver Fund Vs BNP Paribas Long Term Equity Fund (ELSS)

DSP BlackRock tax saver Fund and BNP Paribas Long Term Equity Fund (ELSS) both belong to the ELSS category of Mutual Funds. ELSS or Equity Linked Savings Scheme is also known as a tax saving Mutual Fund. These schemes offer individuals dual benefits of investing as well as tax Deduction. Any individual Investing in ELSS can claim a tax deduction of up to INR 1,50,000 under Section 80C of income tax Act, 1961. However, being a tax saving instrument, it has a lock-in period of three years till which individuals cannot withdraw their money. Though DSP BlackRock Tax Saver Fund and BNP Paribas Long Term Equity Fund (ELSS) both belong to the same category nevertheless; there exist numerous differences between them. So, let us understand the differences between both the schemes through this article.

DSP BlackRock Tax Saver Fund

The objective of DSP BlackRock Tax Saver Fund is to attain Capital appreciation in a medium to long-term investment tenure by predominantly investing the corpus in equity and equity-related instruments. Based on the Asset Allocation objective, DSP BlackRock Tax Saver Fund invests a minimum of 80% of its corpus in equity and equity-related securities. Mr. Rohit Singhania is the sole fund manager managing the DSP BlackRock Tax Saver Fund. As on March 31, 2018, some of the top holdings of DSP BlackRock Tax Saver Fund include HDFC Bank Limited, ICICI Bank Limited, State Bank of India, Tata Steel Limited, and Larsen & Toubro Limited. DSP BlackRock Tax Saver Fund uses Nifty 500 TRI Index as its benchmark to construct its Portfolio. DSP BlackRock Tax Saver Fund adopts a bottom-up, stock-by-stock Basis to invest in shares. It also includes amenities like improving margins, cash flows, and others.

BNP Paribas Long Term Equity Fund (ELSS)

BNP Paribas Long Term Equity Fund (ELSS) is a part of BNP Paribas Mutual Fund. This scheme was launched on January 05, 2006 and uses Nifty 200 TRI Index as its benchmark to construct its portfolio. The risk-appetite of this ELSS scheme is moderately high. The scheme aims for capital growth in the long-term tenure by predominantly investing the fund money predominantly in equity and equity-related instruments. BNP Paribas Long Term Equity Fund is jointly managed by Mr. Karthikraj Lakshmanan and Mr. Abhijeet Dey. Infosys Limited, Maruti Suzuki India Limited, Bharti Airtel Limited, and Kotak Mahindra Bank Limited, are some of the top 10 holdings of BNP Paribas Long Term Equity Fund’s (ELSS) portfolio as on March 31, 2018. In a normal scenario, BNP Paribas Long Term Equity Fund in a normal scenario invests a minimum of 95% of its fund money in equity and equity-related instruments and the remaining in fixed Income and money market instruments.

DSP BlackRock Tax Saver Fund Vs BNP Paribas Long Term Equity Fund (ELSS)

There are a number of differences between DSP BlackRock Tax Saver Fund and BNP Paribas Long Term Equity Fund (ELSS) on a number of parameters. So, let’s understand the differences between these schemes with the help of four sections, given below.

Basics Section

Fincash Rating, current NAV, and scheme category are some of the comparable elements that form part of the basics section. With respect to current NAV, it can be said there exists a difference between both the schemes. As on April 26, 2018, the NAV of DSP BlackRock Tax Saver Fund was approximately INR 46 and of BNP Paribas Long Term Equity Fund (ELSS) was around INR 37. With respect to the scheme category, both the schemes belong to the same category of Equity ELSS. The comparison of Fincash Rating shows that, DSP BlackRock Tax Saver Fund is a 4-Star rated scheme and BNP Paribas Long Term Equity Fund (ELSS) is a 3-Star rated scheme. The summary of the basics section is as follows.

Performance Section

The comparison of Compounded Annual Growth Rate or CAGR returns at different time intervals is done in the performance section. The comparison of the performance section shows that in certain instances, DSP BlackRock Tax Saver Fund has performed better while in others BNP Paribas Long Term Equity Fund (ELSS) has done better. The table given below shows the summary comparison of the performance section.

Yearly Performance Section

Being the third section in the comparison of both the schemes, it analyses the differences in the absolute returns generated by both the schemes for a particular year. The analysis of yearly performance section shows that in some years, DSP BlackRock Tax Saver Fund leads the race while in others, BNP Paribas Long Term Equity Fund (ELSS) Leads the race. The summary comparison of the yearly performance section is tabulated as follows.

Other Details Section

Being the last section in the comparison, it includes parameters such as Minimum SIP investment, minimum lumpsum investment, AUM, and others. The minimum SIP and lumpsum investment for both the schemes are same, that is, INR 500. However, there is a significant difference between the AUM of both the schemes. As on March 31, 2018, the AUM of DSP BlackRock Tax Saver Fund was approximately INR 4,039 Crores and of BNP Paribas Long Term Equity Fund (ELSS) was around INR 528 Crores. The summarized comparison of the other details section is as follows.

Growth of 10k Investments over the years