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Aditya Birla Sun Life Tax Relief 96 Fund: Fund Review

Aditya Birla Sun Life Tax Relief 96 Fund is one of the oldest funds in the ELSS category and an industry veteran with a credible track record. The fund gave 24.49% return since its inception in March 1996. The fund has performed well in the long-run. The manager follows both top-down and bottom-up approach to identify quality stocks. Investors looking at saving taxes and a good investment opportunity to earn good returns can invest in this fund. The fund has a 3-year lock-in period.

Performance

Aditya Birla Sun Life Tax Relief 96 Fund is ranked 9th in its category by Upwardly. The fund has given outstanding returns since its inception. Its short-term performance took a hit with the market undergoing a correction. The fund has beaten its benchmark since inception.

Aditya Birla Sun Life Tax Relief 96 Fund has beaten its category average by 5-9 percentage points and its benchmark by 2-6 percentage points in the 3 and 5-year returns. The fund has performed better than most of its peers in the 5-year returns. The fund has been ranked as one of the top funds in ELSS category for a very long time. Now the fund ranks 9th in the category. The fund gave 24.49% annualized return since its launch in March 1996.

Fund1 Year Return (%)3 Year Return (%)5 Year Return (%)
Aditya Birla Sun Life Tax Relief 96-2.77%12.27%19.69%
IDBI Equity Advantage Fund-1.83%8.56%19.34%
Axis Long Term Equity3.21%11.01%20.42%
ICICI Prudential Long Term Equity Fund2.66%9.22%16.49%
Franklin India Taxshield Fund-2.79%8.46%16.78%

A SIP investment of Rs 5,000 a month in Aditya Birla Sun Life Tax Relief 96 Fund started 5 years ago is worth Rs 4.25 lakhs now. A profit of Rs 1.27 lakhs in just 5 years. Even if one chose to redeem their investment then they would be liable to pay tax only on Rs 27K as gains up to Rs 1 lakh are exempt from taxes.

Fund Information

Aditya Birla Sun Life Tax Relief 96 Fund is one of the oldest ELSS funds. It has been performing fine for the longest time and its performance improved only in 2014 and it has been performing exceptionally well ever since. The management team has been stable since 2006 under the leadership of the fund manager Mr. Ajay Garg.

The fund follows a combination of top-down and bottom-up approach for picking stocks. It follows a multi-cap strategy. The manager focuses on macroeconomic factors, economic changes, and trends, key policy changes, infrastructure spending for the top-down approach analysis. To identify companies he analyses companies based on high profitability and scalability supported by sustainable competitive advantage.

The fund has 49 stocks in its portfolio. The top five holding sectors constitute 70.32% of the portfolio. These include healthcare (20.28%), financial (18.26%), FMCG (10.98%), automobile (10.7%) and services (10.1%).

Recommendation

Aditya Birla Sun Life Tax Relief 96 Fund is ideal for medium to long-term goals. Investors looking for saving tax and earning good returns can invest in this fund. The fund accepts both lump sum and SIP investments. Invest in this fund for an investment horizon of at least 5 years to give the best results. Do not look at the returns for this fund in short-term. The short-term returns can be manipulative. Also, the fund has a 3-year lock-in period.

Fund NameAditya Birla Sun Life Tax Relief 96
Launch DateMarch 29, 1996
AUMRs 6,480 crore
Return (Returns greater than 1 year are annualized)Since Launch: 24.49%
1 Year: -2.77%
3 Year: 12.27%
5 Year: 19.69%
Expense Ratio1.92%
Fund Category RiskHigh
Investment PlanGrowth
Minimum Investment Horizon5+ years
Minimum InvestmentRs 5,000
Minimum Additional InvestmentRs 1,000
Exit LoadNo exit load. 3-year lock-in.
Fund ManagerAjay Garg

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