Aditya Birla Sun Life Tax Relief 96

By Vidhya S | January 22, 2019

If you’re looking for a great long-term investment, then you certainly can’t go wrong with the Aditya Birla Sun Life Tax Relief 96 fund. Here’s all you need to know!

Aditya Birla Sun Life Tax Relief 96

Aditya Birla Sun Life Tax Relief 96 was launched on March 29, 1996 and has a track record of more than 20 years. This fund is one of the best performing ELSS schemes in the category and has a credible track record. The fund has given 24.56% returns since its inception in March 1996.  It has delivered superior performance and has beaten peers across different phases of the market cycle

Fund Management Team & philosophy

The fund is managed by Ajay Garg, who has managed the fund since October 2006. The fund manager follows a combination of the top down and bottom up approach in the stock selection process.

Performance

This fund, in the three, five and ten year time frames, has ranked consistently in the top quartile in its category. It has also beaten the benchmark by a strong margin over the long term.

Aditya Birla Sun Life Tax Relief 96

Returns are on compounded annualised basis and as on December 31, 2018

Consistent Performance

The portfolio is well balanced and tends to do well across different market conditions, as is evident from the rolling returns of the fund over the previous years. The fund has beaten the benchmark 100% of the time over the last 5 years and 3 years. This consistent outperformance shows that the fund manager employs a stable strategy.

3 Year Returns calculated on a daily basis for the last 3 years 5 Year Returns calculated on a daily basis for the last 5 years
Number of times the fund outperformed the benchmark 100% 100%
Average Fund Returns 19.4 19.9
Average Benchmark Returns 11.9 12.6
Outperformance 7.5% 7.3%

SIP Performance

With a monthly SIP of Rs. 5,000 over the last 5 years, you would have accumulated a corpus of Rs. 4.2 lakhs with a cumulative investment of Rs 3 lakhs; a profit of Rs. 1.2 lakhs. SIP is one the best investment modes for tax-saving ELSS investments.

Not only does an SIP ensure that you remain disciplined in your tax planning investments and avoid last minute hassles, it also enables you to take advantage of market volatility through rupee cost averaging.

SIP Performance Investment Value Returns
10 Years 6 Lakhs 13.6 Lakhs 16%
5 Years 3 Lakhs 4.2 Lakhs 13%
3 Years 1.8 Lakhs 2.1 Lakhs 11%

Returns and value as on December 31, 2018

Portfolio And Sector Allocation

The fund is ideal for investors who are investing for the first time with the twin objective of tax saving and capital appreciation. Equity markets can be quite volatile in the short term and hence investors should ideally keep a minimum 3-5 year horizon. The lock-in period of 3 years ensures that investors do not get swayed by short-term volatility.

This scheme is a well-diversified, multi-cap fund with a tilt towards mid-cap stocks. The average market cap of the fund is Rs. 37,416 crores. The fund is overweight in healthcare, services & engineering and underweight in financials, technology and energy.

Aditya Birla Sun Life Tax Relief 96

The fund has an AUM of Rs 6,984 crores. Ajay Garg also manages ABSL Index Fund, ABSL MNC Fund, ABSL Dual Advantage Fund – Series 1. Investments in Aditya Birla Tax Relief 96 will be locked in for 3 years.

Looking for other investment avenues? Well, you’ve certainly come to the right place!

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Category: Asset management ELSS ExpertSpeak Investments Tax Tax Planning UCN
Vidhya S

About Vidhya S

Vidhya is a finance professional with more than 10 years of experience analysing Mutual Funds. She leads the Mutual Fund research activities at BankBazaar. Prior to joining Bank Bazaar, Vidhya worked with Sundaram Asset Management where she was a key stakeholder in building their investment product team from scratch. Vidhya holds a PGDBM in Finance from Institute for Financial Management and Research (IFMR).

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