To put it lucidly, the primary objective of the Reliance Tax Saver fund is to help people save up on income tax plus a little more. Launched in 2005, this scheme is suitable for both the self-employed and employed professionals. Being a mutual fund scheme, it is obvious that market would have an influence over its turnovers.
Categorized Under The ELSS
This makes the scheme eligible to provide both capital growth and save on taxes. There is no such specific lock-in period for which the money is ripened. This makes the whole idea of this tax saver plan quite flexible.
It Helps Make More Money
Reliance Tax Saver plans in such a way as to generate a long-term capital appreciation from an equity-based portfolio. From here, the investors benefit from growth in equity. Besides saving up on taxes, this scheme enhances the capital after a lock-in period, and this does not take years. One can invest in the scheme just by depositing as low as Rs. 500 or as big an amount they see fit.
Most of the funds have found its allocation in fields such as engineering, banking, and the automotive division, the concentration being about 50%. Obviously, the capital gains are higher. The financial sector is the top-most sector in the portfolio of the saver plan, followed by automobile and engineering in the top three.
Transparency Of The Scheme
There are no hidden costs to worry about in the Reliance Tax Saver. The investment procedure is easy, safe, and comprehensible over the usually complicated insurance plans. The main focus is on maximising the benefits of the investors.
The investment can be done by means of SIP investment plan, that way the payments are made easy.
Current Performance
For the June quarter 2017, Crisil, the analytics-based company in India ranked Reliance Tax Saver fund in the third position in the ELSS category. This has been consistent since the last quarter, thus giving an overall three-star, an above-average status. As far as performance is concerned, it has surpassed its benchmark since December 2007.
The scheme holds a return of 14.86% for a decade-long period. The category average is 11.79%, and the benchmark return is set at 8.95%, the fund plan has topped both by a significant margin.
Holds A Three-Star Rating
The product is among the best performing strategies of the ELSS category. It holds a better market possession with a three-star as a rating.
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Impressive NAV Performance
In full, NAV is the Net Asset Value and is crucial for discerning the potential of the scheme, how beneficial it will turn out to be. This helps to calculate how much the invested amount will be worth. With a high NAV of Rs. 50.751, it has paved the way to a wealthy future for many of its investors. The value is recorded as of September 22, 2016.
Based on an annualised performance reports, the values indicated clear outperformance of the Reliance Tax Saver plan. Reliance Tax Saver plan has all the advantages to offer making it desirable to a lot of many investors.
Signup Is Possible Online
But it is a prerequisite that the internet speed should be high enough. Otherwise, the probable returns value related to the capital may show some discrepancy. It is most important to be transparent while making the investment and filing the documents for the same. The investor must provide his/her PAN details, related income information, and the data should be accurate. It is best to try and avoid defaulting and so care must be taken.
There should be no discrepancy regarding income of the individual, because as much as transparency the fund scheme promises to give, it expects a similar gesture in return.
As mentioned before, the Reliance Tax Saver scheme is vulnerable to market risks and has been found to show a higher volatility in comparison to its peers. The risks are associated mainly with the condition of the market.
An overall view that can be made of the fund is that it is quite hard-lined for a tax saver plan. The stakes are raised at a higher bar given the current performance of the plan.
Hence, the investors who are okay with taking higher risks with the hope to get an inflated return on their invested capital are compatible with the Reliance Tax Saver fund. The alpha generated is greater than its peers given the fund’s lax approach to the investment.
One more thing to keep in mind would be that there is no guarantee that the investment objective can be achieved in full, once again pointing towards market volatility. The returns are likely to soar during a market on the rise than a market that falls flat-out.
This fund is not for the faint-hearted investors, to say the least. Its flexibility is what makes it investment-worthy.
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