Nippon India Tax Saver Fund (ELSS) Vs Aditya Birla Sun Life Tax Relief ‘96 Fund

Nippon India Tax Save Fund (Formerly known as Reliance tax saver Fund) and Aditya Birla Sun Life Tax Relief ’96 both are part of ELSS funds. Also known as tax saver funds these schemes do provide benefits of both Investing and tax deductions. People investing through these schemes can claim a tax Deduction up to INR 1,50,000 under Section 80C of income tax Act, 1961. So, let us look glance through both of these schemes and understand the parameters that differentiate them.

Nippon India Tax Saver Fund (Formerly Reliance Tax Saver Fund)

Important- 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.

This fund was launched in the year 2005. The scheme’s investment objective is to generate long-term Capital appreciation by investing a predominant portion of the fund money in equity and equity-related instruments. Being a tax saver scheme, it has a lock-in period of three years.

Some of the top 10 holdings that constitute the Portfolio of Reliance Tax Saver Fund (ELSS) include State Bank of India, TVS Motor Company Limited, Tata Steel Limited, and ICICI Bank Limited.

Aditya Birla Sun Life Tax Relief ’96 Fund

This scheme is a part of Aditya Birla Sun Life Mutual Fund. It was launched in the year 1996. It is an open-ended scheme whose primary objective is to provide an opportunity to save tax while growing your money through equity investments. This scheme invests a minimum of 80% of its fund money in equity instruments while the remaining in fixed Income instruments.

Some of the shares that constitute the top 10 holdings of Aditya Birla Sun Life Tax Relief ’96 include Sundaram Clayton Limited, Honeywell Automation India Limited, Gillette India Limited, and Reliance India limited.

Nippon India/Reliance Tax Saver Fund Vs Aditya Birla Sun Life Tax Relief ‘96

The parameters for comparison of Reliance Tax Saver Fund (ELSS) and Aditya Birla Sun Life Tax Relief ’96 Fund are divided into four categories, namely basics, performance, yearly performance, and other details.

Basics

In this component of basics, the parameters compared are current NAV, category of schemes, Fincash Ratings, expense ratio, AUM, and much more. To begin with the category of schemes, both the schemes form part of equity category and ELSS being its sub-category.

With respect to Fincash ratings, Nippon India Tax Saver Fund (ELSS) has a 3-Star rating while Aditya Birla Sun Life Tax Relief ’96 has a 4-star rating.

The table given below summarizes the comparison of both the schemes with respect to basics category.

Performance

The next category of comparison is performance. In this category, the performance of the scheme at various time periods is compared. A glance at the performance of both the funds reveals there is not much difference in the returns generated by them though; Reliance/Nippon India Tax Saver Fund (ELSS) leads with respect to performance since inception.

As on February 12, 2018, the returns since inception generated by Reliance is approximately 16% while Birla Sun life is 12%.

However, when we look at returns generated at other time periods, Aditya Birla Sun Life Tax Relief ’96 Fund has performed better. The table given below shows the performance comparison between both the funds.

Yearly Performance

This section compares the details between the yearly performance of both the schemes. Based on the yearly performance we can say that the performance of both the schemes is almost the same. However, for the year 2014, we can say that the performance of Aditya Birla scheme was better than Nippon India/Reliance Tax Saver Fund (ELSS). The yearly performance of both the schemes is tabulated as follows.

Other Details

This is the last category of comparison. The parameters forming part of this category include Minimum SIP and Lumpsum Investment, Benchmark, and others. So, let us have a glance at each of these factors. Let us first glance at, Minimum SIP and Lumpsum investment, both the schemes have the same investment amount under both SIP as well as lumpsum mode of investment, that is, INR 500.

The fund manager managing Reliance Tax Saver Fund (ELSS) is Mr. Ashwani Kumar.

Aditya Birla Sun Life Tax Relief '96 is managed by Mr. Ajay Garg

A table summarizing the differences of other details category is given below.

Growth of 10k Investments over the years