Fincash » Tata India Tax Savings Vs Principal Tax Savings Fund
Table of Contents
Tata India Tax Savings Fund and Principal Tax Savings Fund both the schemes are a part of the ELSS category of Mutual Funds. ELSS or Equity Linked Savings Scheme is a type of Mutual Fund that gives investors dual benefits of investing and tax Deduction. ELSS schemes predominantly invest their major stake of the fund money in equity and equity-related instruments. Individuals Investing in ELSS can claim a tax deduction of up to INR 1,50,000 under Sec. 80c of income tax Act, 1961. Being a tax saving instrument, ELSS has a lock-in period of three years. However, it is the shortest as compared to other tax saving avenues. Though both Tata India Tax Savings Fund and Principal Tax Savings Fund are a part of the same category, nevertheless; there are a number of differences between them. So, let’s have an in-depth understanding of these parameters.
Tata India Tax Savings Fund is suitable for investors seeking appreciation in the Capital in medium to long-term horizon along with benefits of tax deduction. One of the advantages of Tata India Tax Savings Fund is it selects stocks that are fundamentally good by adopting a top-down and bottom-up approach. Tata India Tax Savings Fund, based on its Asset Allocation objective invests around 80-100% of its money in equity and equity-related instruments and the remaining in fixed Income and money market instruments. Mr. Rupesh Patel is the sole fund manager managing the Tata India Tax Savings Fund. This scheme of Tata Mutual Fund uses S&P BSE Sensex TRI as its base to build its basket of assets. Some of the top 10 constituents of Tata India Tax Savings Fund’s Portfolio as on March 31, 2018, include HDFC Bank Limited, Kotak Mahindra Bank, Reliance Industries Limited, and Tata Motors Limited.
Principal Tax Savings Fund is offered and managed by Principal Mutual Fund. This scheme was incepted on March 31, 1996, and uses S&P BSE 200 Index as its benchmark to build its portfolio. Mr. P.V.K. Mohan is the fund manager managing the Principal Tax Savings Fund. The scheme aims at providing returns to its investors by way of capital appreciation. The objective of Principal Tax Savings Fund is to provide a high-quality growth-oriented portfolio that helps in attaining long-term Capital Gains to the investors. As per the asset allocation objective of Principal Tax Savings Fund, it invests a minimum of 80% of its pooled money in equity and equity-related instruments and a maximum of 20% of its pooled money in Fixed Income instruments.
Though both Tata India Tax Savings Fund and Principal Tax Savings Fund both are a part of ELSS category, nevertheless; there differ on a number of parameters. So, let us understand the differences between these schemes by analyzing these parameters that are classified into four sections, listed below as follows.
Being the first section in the comparison, it includes parameters such as current NAV, scheme category, and Fincash Rating. To begin with the scheme category, it can be said that both the schemes are a part of Equity ELSS category. The comparison of Fincash Rating reveals that Tata India Tax Savings Fund is a 5-Star rated scheme and Principal Tax Savings Fund is a 4-Star rated scheme. However, there is a considerable difference in the NAV of both the schemes. As on May 02, 2018, the NAV of Tata India Tax Savings Fund is approximately INR 17 and of Principal Tax Savings Fund is around INR 219. The comparison of 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 Tata India Tax Savings Fund
Growth
Fund Details ₹43.0591 ↓ -0.46 (-1.06 %) ₹4,711 on 30 Jun 25 13 Oct 14 ☆☆☆☆☆ Equity ELSS 1 Moderately High 0 -0.02 -0.31 -0.42 Not Available NIL Tata India Tax Savings Fund
Growth
Fund Details ₹43.0591 ↓ -0.46 (-1.06 %) ₹4,711 on 30 Jun 25 13 Oct 14 ☆☆☆☆☆ Equity ELSS 1 Moderately High 0 -0.02 -0.31 -0.42 Not Available NIL
It is the second section in the comparison that analyzes the differences in the CAGR or Compounded Annual Growth Rate of both the schemes. These CAGR returns are compared at different time intervals such as 1 Month Return, 6 Month Return, 3 Year Return, and Return since Inception. The comparison of performance section states that, in many instances, Principal Tax Savings Fund leads the race. The table given below summarizes the comparison of performance section.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch Tata India Tax Savings Fund
Growth
Fund Details -4.1% 3.2% 2.9% 0.3% 14.9% 19.7% 14.4% Tata India Tax Savings Fund
Growth
Fund Details -4.1% 3.2% 2.9% 0.3% 14.9% 19.7% 14.4%
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This section compares the absolute returns generated by both the schemes for a particular year. The comparison of yearly performance section in certain years, Tata India Tax Savings Fund leads the race while for others, Principal Tax Savings Fund leads the race. The summary comparison of the absolute returns is summarized as follows.
Parameters Yearly Performance 2024 2023 2022 2021 2020 Tata India Tax Savings Fund
Growth
Fund Details 19.5% 24% 5.9% 30.4% 11.9% Tata India Tax Savings Fund
Growth
Fund Details 19.5% 24% 5.9% 30.4% 11.9%
It is the last section in the comparison and includes parameters such as AUM, exit load, minimum SIP investment, and minimum lumpsum investment. The minimum SIP and lumpsum investment are same for both the schemes, that is, INR 500. With respect to the exit load, there is no exit load on both the schemes, as they are ELSS based schemes. However, both the schemes differ significantly on account of AUM. The AUM of Tata Mutual Fund’s scheme was around INR 1,267 Crores while of Principal Mutual Fund’s scheme was nearly INR 375 Crores as of March 31, 2018. The other details section is tabulated as follows.
Parameters Other Details Min SIP Investment Min Investment Fund Manager Tata India Tax Savings Fund
Growth
Fund Details ₹500 ₹500 Rahul Singh - 0.08 Yr. Tata India Tax Savings Fund
Growth
Fund Details ₹500 ₹500 Rahul Singh - 0.08 Yr.
Tata India Tax Savings Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Jul 20 ₹10,000 31 Jul 21 ₹14,788 31 Jul 22 ₹16,197 31 Jul 23 ₹19,199 31 Jul 24 ₹25,864 31 Jul 25 ₹25,568 Tata India Tax Savings Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Jul 20 ₹10,000 31 Jul 21 ₹14,788 31 Jul 22 ₹16,197 31 Jul 23 ₹19,199 31 Jul 24 ₹25,864 31 Jul 25 ₹25,568
Tata India Tax Savings Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 5.19% Equity 94.81% Equity Sector Allocation
Sector Value Financial Services 34.15% Consumer Cyclical 14.22% Industrials 13.87% Basic Materials 6.85% Technology 6.75% Energy 5.51% Communication Services 4.32% Health Care 3.23% Real Estate 2.46% Utility 2.45% Consumer Defensive 1% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 28 Feb 10 | HDFCBANK7% ₹345 Cr 1,725,000 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Nov 16 | 5321747% ₹307 Cr 2,125,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 18 | RELIANCE4% ₹203 Cr 1,350,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Sep 19 | BHARTIARTL4% ₹189 Cr 940,000 Infosys Ltd (Technology)
Equity, Since 30 Sep 18 | INFY4% ₹186 Cr 1,160,000 State Bank of India (Financial Services)
Equity, Since 30 Nov 18 | SBIN4% ₹178 Cr 2,175,000 Axis Bank Ltd (Financial Services)
Equity, Since 31 Aug 18 | 5322153% ₹156 Cr 1,300,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Nov 16 | LT3% ₹129 Cr 352,147 NTPC Ltd (Utilities)
Equity, Since 30 Jun 21 | 5325552% ₹116 Cr 3,451,000 Samvardhana Motherson International Ltd (Consumer Cyclical)
Equity, Since 30 Nov 22 | MOTHERSON2% ₹105 Cr 6,800,000 Tata India Tax Savings Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 5.19% Equity 94.81% Equity Sector Allocation
Sector Value Financial Services 34.15% Consumer Cyclical 14.22% Industrials 13.87% Basic Materials 6.85% Technology 6.75% Energy 5.51% Communication Services 4.32% Health Care 3.23% Real Estate 2.46% Utility 2.45% Consumer Defensive 1% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 28 Feb 10 | HDFCBANK7% ₹345 Cr 1,725,000 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Nov 16 | 5321747% ₹307 Cr 2,125,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Jan 18 | RELIANCE4% ₹203 Cr 1,350,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Sep 19 | BHARTIARTL4% ₹189 Cr 940,000 Infosys Ltd (Technology)
Equity, Since 30 Sep 18 | INFY4% ₹186 Cr 1,160,000 State Bank of India (Financial Services)
Equity, Since 30 Nov 18 | SBIN4% ₹178 Cr 2,175,000 Axis Bank Ltd (Financial Services)
Equity, Since 31 Aug 18 | 5322153% ₹156 Cr 1,300,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Nov 16 | LT3% ₹129 Cr 352,147 NTPC Ltd (Utilities)
Equity, Since 30 Jun 21 | 5325552% ₹116 Cr 3,451,000 Samvardhana Motherson International Ltd (Consumer Cyclical)
Equity, Since 30 Nov 22 | MOTHERSON2% ₹105 Cr 6,800,000
Therefore, from the above pointers, it can be said that both the schemes differ on numerous parameters though they form part of the same category. Resultantly, individuals should be careful while choosing any of the schemes for investment. They should check whether the scheme suits their investment objective or not. They should also understand its functioning completely. If required, the opinion of a financial consultant can also be taken. These steps will help ensure that individuals attain their objectives on time and in a hassle-free manner.