Are you one of them who wants to save tax while filing income tax return? You can do so by investing in DSP BlackRock tax saver fund and can actually save up to Rs. 46350.
In fact, ELSS Mutual Funds is really a great choice for you to save tax under Section 80C of Income Tax Act.
Key benefits of DSP BlackRock Tax Saver Fund – Equity Linked Savings Schemes
You can invest up to Rs. 150,000 in ELSS and enjoy tax benefits up to Rs. 46,350. DSP BlackRock tax saver fund is one of them.
Dividends earned by you while investing in Equity Linked Savings Schemes are also tax-free. You don’t need to pay tax during the investment period.
You’ll get the exposure of equity related market that has been managed by well-diversified portfolio.
So, if you are seeking for your capital to grow for long-term and investment in equity, then DSP BlackRock tax saver fund is for you.
Features of DSP BlackRock Tax Saver Fund
It is an open-ended Equity Linked Savings Scheme (ELSS). Its main objective is to generate capital appreciation from a diversified portfolio of equity shares. More than 80 percent of its asset is allocated to equity and equity-related securities.
Rest is allocated to ARDs, GDRs, and foreign equity instruments. Furthermore, some of its assets also been invested in debt, securitized debt and money market securities as well.
The fund is followed benchmark index Nifty 500 and you invest either in Growth or Dividend (Payout) option.
To start with you can invest with a minimum of Rs. 500 and any amount thereafter in a Regular & Direct Plan. In the case of Systematic Investment Plan (SIP), you can invest Rs. 500 for 12 months minimum.
Since inception, it has returned over 15 percent as compared to its benchmark index Nifty 500 that has returned only just above 9 percent.
So, you can expect around 15 to 20 percent return on your investment for a period of three years.
Portfolio of DSP BlackRock Tax Saver Fund
The Fund has more than 69% exposure in Large-cap stocks, followed by 13.9% in Mid-cap stocks and 7% in Small-cap stocks. It has also exposure to Micro-cap stocks with just over 6%.
If you want to dig sector allocation, then the banking sector dominates with over 25% allocation followed by Finance with near about 10%. Almost 7% each has been invested in Petroleum products and Consumer Non-Durables sectors.
Around 6% has been allocated in Automotive and Non-Ferrous Metals and 4% has been invested in Constructions, Cement, and Ferrous Metals.
Its top 10 holdings are HDFC Bank(5.69%), ICICI Bank(4.34%), Yes Bank(4.14%), Tata Steel(3.84%), ITC(3.46%), HDFC(3.38%), Vedanta(3.36%), SBI(3.17%), HPCL(2.83%), and Federal Bank(2.72%).
So, you can invest as per your requirements to save tax along with that you will also get decent returns on your investment.
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Published on: Jan 19, 2018