Wednesday, December 9, 2015

Reliance Tax Saver Fund Review

 

Reliance Tax Saver Fund - Invest Online

 

Reliance Tax Saver (ELSS) Fund is one of the best performing funds in its category. It is managed by Ashwani Kumar. If you invest in this fund then it allows investor to get the income tax rebate, as accepted from time to time. It is a goof fund to keep for long term purpose.

Reliance Tax Saver FundWhere Reliance Tax Saver Fund invest the fund?

Reliance Tax Saver Fund (ELSS) is a mid cap fund that invests most of your money in stocks of medium sized companies. According to record, about 51.29% of the fund's money is assigned to stocks of mid size companies, 31.48% to stocks of small size companies and the remaining to those of big companies. Mid size stocks can offer you bigger returns but it does not happen very often.

Suitable for:

  • If you want to create wealth
  • IF you want to accomplish lifestyle requirements

Not Suitable for:

  • Your Child's Education
  • Your Child's Marriage
  • If you are planning for retirement
  • IF you are planning to purchase a new home

How much to invest?

In Reliance Tax Saver Fund, the minimum one time investment is Rs 500 and minimum SIP is Rs 100 per month. Don't make Reliance Tax Saver as your core portfolio as it is investments that are made for your basic aims and makes upto about 70% of your investment portfolio. In addition, never invest in multiple mutual fund schemes. Reliance Tax Saver Fund can be part of your Satellite Portfolio.

Reliance Tax Saver Fund performance in past:

The Reliance Tax Saver Fund was launched in the year 2005 in September. If you had invested Rs 1 Lakh when it was launched then your value of investments would be around Rs 2.32 Lakhs. IF you had invested RS 1 Lakh 5 years back then it would have become 1.5 Lakhs. This fund has been providing at around 8.5% every year for those who invested in last 5 years.

Charges applied:

In Reliance Tax Saver Fund, a onetime fee of RS 100 is taken on investments over RS 10000 made through distributors. If you are going to invest for the time mutual funds an additional Rs 50 will be taken for KYC expenses. It is deducted from your investment and it can also be avoided if you purchase it from the mutual fund online or offices.

When to exit?

 

There is a lock-in period of 3 years in this fund and you can't sell funds within 3 years of your purchase date. Withdraw when your aims are closer to success.

Tax Implications:

If you don't withdraw within 1 year then the returns in a mutual fund are absolutely tax free. The Reliance Tax Saver (ELSS) Fund is eligible for section 80C advantages. It means that you can invest up to Rs 1 Lakh a year in this fund!

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. IDFC Tax Advantage (ELSS) Fund

4. ICICI Prudential Long Term Equity Fund

5. Religare Tax Plan

6. Franklin India TaxShield

7. DSP BlackRock Tax Saver Fund

8. Birla Sun Life Tax Relief 96

9. Reliance Tax Saver (ELSS) Fund

10. HDFC TaxSaver

Invest Rs 1,50,000 and Save Tax under Section 80C. Get Good Returns by Investing in ELSS Mutual Funds Online

Invest in Tax Saver Mutual Funds Online

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