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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.
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) 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.
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.
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.
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 ₹112.527 ↑ 1.04 (0.93 %) ₹14,147 on 29 Feb 24 18 Jan 07 ☆☆☆☆ Equity ELSS 12 Moderately High 1.78 2.53 0.33 0.45 Not Available NIL BNP Paribas Long Term Equity Fund (ELSS)
Growth
Fund Details ₹80.2479 ↑ 0.65 (0.82 %) ₹836 on 29 Feb 24 5 Jan 06 ☆☆☆ Equity ELSS 22 Moderately High 2.37 2.32 0 0 Not Available NIL
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.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch DSP BlackRock Tax Saver Fund
Growth
Fund Details -0.6% 3.5% 16.6% 43.8% 20.5% 18.5% 15.1% BNP Paribas Long Term Equity Fund (ELSS)
Growth
Fund Details 1.8% 4.5% 20.7% 45.9% 16.7% 16.4% 12.1%
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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.
Parameters Yearly Performance 2023 2022 2021 2020 2019 DSP BlackRock Tax Saver Fund
Growth
Fund Details 30% 4.5% 35.1% 15% 14.8% BNP Paribas Long Term Equity Fund (ELSS)
Growth
Fund Details 31.3% -2.1% 23.6% 17.8% 14.3%
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.
Parameters Other Details Min SIP Investment Min Investment Fund Manager DSP BlackRock Tax Saver Fund
Growth
Fund Details ₹500 ₹500 Rohit Singhania - 8.63 Yr. BNP Paribas Long Term Equity Fund (ELSS)
Growth
Fund Details ₹500 ₹500 Sanjay Chawla - 1.97 Yr.
DSP BlackRock Tax Saver Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 19 ₹10,000 29 Feb 20 ₹11,148 28 Feb 21 ₹14,652 28 Feb 22 ₹17,562 28 Feb 23 ₹18,288 29 Feb 24 ₹25,762 BNP Paribas Long Term Equity Fund (ELSS)
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 28 Feb 19 ₹10,000 29 Feb 20 ₹11,512 28 Feb 21 ₹14,361 28 Feb 22 ₹16,254 28 Feb 23 ₹15,982 29 Feb 24 ₹22,369
DSP BlackRock Tax Saver Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 4.9% Equity 95.1% Equity Sector Allocation
Sector Value Financial Services 35.12% Consumer Cyclical 12.02% Technology 9.02% Basic Materials 8.67% Health Care 8.1% Industrials 6.18% Utility 4.77% Consumer Defensive 4.62% Energy 4.35% Communication Services 1.87% Real Estate 0.38% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 16 | ICICIBANK8% ₹1,142 Cr 10,848,875
↑ 475,242 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 08 | HDFCBANK7% ₹959 Cr 6,833,177
↑ 148,839 State Bank of India (Financial Services)
Equity, Since 30 Jun 20 | SBIN5% ₹690 Cr 9,223,663
↑ 437,951 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 30 Nov 21 | M&M3% ₹405 Cr 2,097,562
↓ -194,380 Infosys Ltd (Technology)
Equity, Since 31 Mar 12 | INFY3% ₹399 Cr 2,382,232 Axis Bank Ltd (Financial Services)
Equity, Since 30 Nov 18 | 5322153% ₹388 Cr 3,606,136 HCL Technologies Ltd (Technology)
Equity, Since 31 Mar 21 | HCLTECH3% ₹379 Cr 2,280,758 Power Finance Corp Ltd (Financial Services)
Equity, Since 31 Dec 22 | 5328103% ₹363 Cr 9,050,202
↑ 68,694 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Nov 22 | HINDUNILVR2% ₹325 Cr 1,346,783 Coforge Ltd (Technology)
Equity, Since 28 Feb 23 | COFORGE2% ₹314 Cr 479,377 BNP Paribas Long Term Equity Fund (ELSS)
Growth
Fund Details Asset Allocation
Asset Class Value Cash 4.79% Equity 95.21% Equity Sector Allocation
Sector Value Financial Services 29.26% Technology 11.74% Consumer Cyclical 11.55% Industrials 11.07% Health Care 7.1% Basic Materials 5.66% Energy 5.23% Communication Services 5.21% Utility 3.81% Real Estate 2.78% Consumer Defensive 1.8% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 08 | HDFCBANK6% ₹48 Cr 342,160
↑ 15,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 18 | RELIANCE5% ₹44 Cr 152,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 12 | ICICIBANK5% ₹39 Cr 371,000
↓ -41,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Apr 20 | LT3% ₹27 Cr 77,620
↓ -8,500 Tata Consultancy Services Ltd (Technology)
Equity, Since 31 Jan 23 | TCS3% ₹25 Cr 60,120 Zomato Ltd (Consumer Cyclical)
Equity, Since 31 Jul 23 | 5433203% ₹22 Cr 1,345,013
↓ -104,987 Trent Ltd (Consumer Cyclical)
Equity, Since 31 May 22 | 5002512% ₹21 Cr 53,614
↓ -10,000 Infosys Ltd (Technology)
Equity, Since 29 Feb 24 | INFY2% ₹20 Cr 120,000
↑ 120,000 Bharat Heavy Electricals Ltd (Industrials)
Equity, Since 31 Jan 24 | 5001032% ₹18 Cr 775,000
↑ 150,000 Axis Bank Ltd (Financial Services)
Equity, Since 31 Aug 18 | 5322152% ₹17 Cr 160,000
↑ 21,000
Therefore, in a nutshell, it can be said that both the schemes belong to the same category of equity fund but they have numerous differences. Resultantly, individuals should be careful before choosing any of the schemes for investment. They should understand the modalities of the scheme thoroughly and check whether the scheme suits their investment objective or not. This will help them to attain their objectives on time and in a hassle-free manner.