Benefits of Aditya Birla Sun Life Tax Relief 96 Fund?

Posted by Dishika Baheti on August 18th, 2018

Aditya Birla Sun Life Mutual Fund, an AMC which has built a great reputation in the mutual fund market by providing numerous consistent performers over the years. The trust investors have in this fund house can be seen by its huge asset size of Rs 249269.92 crores (as on Jun 30, 2018). Today, we are going to discuss one such terrific scheme from this AMC which has shown unaltered performance since its inception, and the name of the scheme is Aditya Birla Sun Life Tax Relief 96 Fund (G).

Aditya Birla Sun Life Tax Relief 96 Fund Growth Plan: Basic Details

This scheme falls under the ELSS category and was launched on Mar 29, 1996, with the objective to provide long-term capital appreciation, by investing majorly in equity instruments. The fund also falls U/s 80C, according to which investments up to Rs 1.5 lakhs made in this scheme will be exempted from taxation. As on Aug 10, 2018, Aditya Birla Sun Life Tax Relief 96 Fund NAV is Rs 164.68, and the assets under management as recorded on Jul 31, 2018, are worth Rs 6,659 crores. It has an expense ratio of 2.27% (as of Jun 30, 2018), and a lock-in period of 3 years. The lock-in is a time period for which your investments will be locked and you can only redeem your investments after the completion of this period. Now, let’s have a look at the benefits of investing in this scheme.

Benefits of Investing in ABSL Tax Relief 96 Fund

There are a total of 4 major benefits of investing in Aditya Birla Sun Life Tax Relief 96 Fund (G), which are as follows:

Save Tax: This is the major benefit of this scheme which differentiates it from other equity-oriented schemes. We already discussed above that by investing in this fund, an individual can claim tax benefits on investments up to Rs 1.5 lakhs, but how exactly the tax saving works. Let’s understand it with the help of a quick example. Say, you have an annual income of Rs 5 lakhs and from this, you make an investment of Rs 50,000 in this fund. Now, at the time of tax filing, you will be liable to pay taxes on just Rs 4.5 lakhs, as the investment amount (Rs 50,000) will be exempted from your annual taxable income.

Consistent Returns: Aditya Birla Sun Life Tax Relief 96 Fund has provided returns of 17.73%, 12.35%, and 24.71% in past 1, 3, and 5 years, and the total annualized returns it has provided since its inception is 25.28%. These returns show the consistency it has shown over the years.

Optimal Portfolio: The portfolio of Aditya Birla SL Tax Relief 96 Fund basically contains equity instruments from large and mid-caps, and are majorly from healthcare, finance, automobile, services, and FMCG sector. This portfolio allocation is a perfect blend of growth and security and will help the investors in making good returns in the near future.

Low-Risk: The risk associated with this scheme is very low in comparison to the benchmark and category. It currently has a beta of 0.88, which show that the scheme is less volatile than the market, and the Sharpe of the scheme is 0.50, which is greater than both benchmark and category and show the high risk to return ratio associated with this scheme. The SD is also less than benchmark and category, which show that the effect of volatility on the scheme is comparatively less.

So with this, we have covered all the benefits associated with Aditya Birla Sun Life Tax Relief 96 Fund (G). This scheme has already helped thousands of investors in achieving their financial goals and holds the potential of showing even better performance in the future. So don’t wait for the next year and start your investments now to get the most out of this scheme.