When it comes to opting for a tax saving investment option many investors prefer Equity Linked Saving Scheme (ELSS) mutual fund SIP over Public Provident Fund (PPF).
It comes with the dual benefit of tax deductions and wealth generation over time. Investing in ELSS can be used for a deduction of up to ₹1.5 lakh under section 80C of the Income-tax Act, 1961.
Among many ELSS mutual funds, one outstanding performer has been Mirae Asset Tax Saver Fund.
Mirae Asset Tax Saver Fund launched on 28th December, 2015 with the fund being operational around for seven years. The investment objective of the scheme is to generate long term capital appreciation from a diversified portfolio of predominantly equity and equity related instruments.
It is an open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit. The fund invests minimum 80% of its total assets in equity and equity related securities of companies across industry sectors and market cap segments. The fund can also invest 0-20% of its total assets in money market instruments, debt securities and G-Secs etc.
The fund currently holds assets under management (AUM) worth ₹12615 crore as on Jul 31, 2022. Its net asset value (NAV) has grown from ₹10 to ₹33.93 as on September 1, 2022.
| Invested period | 10,000 invested on | Annualised returns | ₹10,000 would have grown to… |
| 3-year | 30 August, 2019 | 21.69% | 18,020 |
| 5-year | 01 September, 2017 | 14.98% | 20,096 |
| Since inception | 28 December, 2015 | 18.38% | 30,797 |
(Source: AMFI data; Regular returns as on September 1, 2022)
The tax saver fund has given a 3 years return of about 21.69% and 5 years of over 14.98%, and since its inception, it has generated over 18.38% as of September 1, 2022.
Hence if an investor had started a monthly SIP of ₹10,000 since the fund was launched (six years and eight months ago in December 2015), then it would now have turned to ₹15.73 lakh.
The fund has an expense ratio of 0.56%. The total expense ratio or TER represents the annual fund operating expenses of a scheme, expressed as a percentage of the fund’s daily net assets.
The fund has 98.88% investment in domestic equities of which 55.68% is in large cap stocks, 10.99% is in mid cap stocks and 7.72% in small-cap stocks.
HDFC Bank, ICICI Bank, Reliance Industries, Infosys, Axis Bank, State Bank of India, Tata Consultancy Services, Bharti Airtel, Sun Pharma, Larsen and Toubro (L&T) are the top ten holdings of the fund.
Neelesh Surana is the fund manager of the scheme since its inception. According to the fund house, the risk profile of Mirae Asset Tax Saver Fund is ‘Moderately High’.
