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Do you want to grow your money and save tax too? Then, Reliance Tax Saver Fund can be a suitable option. An ELSS is an Equity Linked Savings Scheme is a type of mutual fund scheme where most of the investment is put in equities.
The minimum lock-in period of investment in an ELSS is 3 years. This means that, if you start a Systematic Investment Plan (SIP) in an ELSS, then each of your investments will be locked in for 3 years from the respective investment date. Thus, an Equity Linked Saving Scheme or ELSS is a tax saving mutual fund where you can save upto ₹1.5 lakh in a financial year under Section 80C.
The ELSS fund was launched in 1995 with the primary investment objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments.
There are three types of Reliance Tax Saver Mutual Funds offered.
Growth Option - A growth option is where no dividend is paid to any of the investors. The gains and proceeds are reinvested back to the scheme in order to increase the Net Asset Value (NAV) over time. The purpose of reinvestment results in capital appreciation.
Direct Plan - A direct open ended fund, they come with a lower expense ratio but a higher NAV. The lower expense ratio is designed to provide a greater degree of capital appreciation in the long-term, (The fund provides higher returns over long-term investments).
Dividend Option - A dividend option is where an investor is entitled to dividends if the fund declares the same in the near future, this is offered in both direct and regular plans. The dividend amount is based on the number of units the investor holds and may feature either a payout option or a reinvest option. In the case of dividend payout, the dividend is automatically transferred to the investor’s bank account, while in the case of the dividend reinvest, the dividend earned is automatically converted to units of equal value and added to existing number of units of the fund.
Transparent and Safe Investment Scheme : The Reliance Tax Saver ELSS Fund is a solid financial scheme with complete transparency and safety. Investors need not worry about incurring any losses with respect to this scheme.
No Complicated Formalities : Since the entire process of investment can be done online from the AMC’s website, there are lesser formalities and paperwork, making it easy and hassle-free for any investor.
Minimal Risks for Investors to Face : The Reliance Tax Saver ELSS Fund carries minimum risk with respect to market-linked returns. Long term investment and good fund management takes care of market volatility and returns.
Save Money on Capital Gains Tax Payments : Yes, one of the primary reason for investing in Reliance Tax Saver ELSS Fund is to save taxes and maximize capital gains at the same time. You can save upto ₹1.5 lakh in a financial year under Section 80C by investing in a Reliance Tax Saver ELSS Fund.
SIPs for a Smooth and Efficient Investment : A Systematic Investment Plan or an SIP is when you invest a regular amount on a monthly basis in a particular mutual fund. With Reliance Tax Saver Fund, you can start with as little as ₹500 per month, week or quarter. SIPs reduce the financial burden on your head as you don’t have to pay a lump sum amount for investment.
No Maximum Investment Limit : Although the minimum amount of investment in a Reliance Tax Saver ELSS Fund is ₹500, there is no cap on the maximum amount of investment. An investor can invest any amount of money in this fund on order to as many NAV units as they want.
Quick Payouts or Dividends : With respect to payouts, they are exercised in the form dividends. The dividends are distributed at the end of every financial quarter.
Investment Benefits for all People : There are no restrictions on the investor, everyone can invest in the Reliance Tax Saver ELSS Fund. Even senior citizens can avail tax exemption from this scheme.
The primary objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments. The capital is expected to be generated through investments made in various equity investments as well as equity-related schemes, which feature a high potential for long-term growth along with a relatively high level of risk.
The investment strategy of Reliance Tax Saver ELSS Fund is:
|Type||Open ended ELSS|
The following plans are offered under this scheme:
|Options||Growth option, Dividend Payout Option, Annual Dividend Payout Option|
|Minimum investment amount||Rs.500 and in multiples of Rs.500 thereafter|
|Minimum additional investment||Rs.500 and in multiples of Rs.500 thereafter|
|Minimum installment for Systematic Investment Plan (SIP)||
|Minimum installment for Systematic Transfer Plan (STP)||
|Minimum installment for Systematic Withdrawal Plan (SWP)||Rs.500 and in multiples of Rs.100 thereafter|
|Investment Sector||Top Holdings|
|Banking/Finance||State Bank of India, ICICI Bank, Axis Bank, Bank of Baroda, HDFC Bank, Yes Bank, Canara Bank, Reliance Capital Limited, etc.|
|Automobiles/Auto Ancillaries||TVS Motor Company, Federal-Mogul Goetze (India), Sundaram Clayton, Wheels India, etc.|
|Consumer Non-durables||ITC Limited, Jubilant Foodworks, etc.|
|Ferrous Metals||Tata Steel, Indian Metals, and Ferro Alloys, etc.|
|Industrial Capital Goods||Honeywell Automation India, ABB India, Siemens, BEML, GE T & D India, etc.|
|Industrial Products||Vesuvius India, KSB Pumps, Bharat Forge, etc.|
|Software||Infosys Limited, HCL Technologies Limited, etc.|
|Miscellaneous||Ramco Cements, The Indian Hotels Company, UPL Limited, Aurobindo Pharma, Trent Limited, Jet Airways, HDFC, etc.|
An investor can invest in Reliance Tax Saver ELSS Fund via the AMC’s official website - reliancemutual.com and select the ELSS section in order to download the application form. The investor will have to provide basic details such as identity and address proof (KYC). Submission of KYC documents are mandatory for investment is Reliance Tax Saver ELSS Fund. Post submission, the investor has to complete the process of in-person verification. Post verification, you can start investing.
Can I invest in Reliance Tax Saver Fund?
Yes, you can invest in Reliance Tax Saver ELSS Fund if you want to create long term capital along with tax benefits.
Is it profitable to invest in Reliance Tax Saver (ELSS)?
Yes, the Reliance Tax Saver ELSS Fund has performed very well in the past with a return rate of 16.42%. This is a suitable option for investing in an ELSS scheme.
Should I think about investing in a Reliance Tax Saver (ELSS) Fund?
Yes, all ELSS schemes come with an option of switching funds via Systematic Transfer Plan.
Should I worry if my reliance ELSS tax saving mutual fund is not showing any appreciation in the last 4 months?
It is advisable that all equity investments should be held for a long term. You should not judge a fund’s performance just over 4 months. There can be negative returns in the short run but they are countered by the long terms benefits of the scheme.
Will it be good to invest for 5 yrs in Reliance Mutual Funds?
Yes, if you have a high risk appetite and want to gain higher returns with lesser volatility, this is one of the best tax savings funds available.
I want to invest in SIP of Rs.5000/- per month in Reliance Tax Saver.Is it worthwhile to invest?
Yes, if you are looking for an investment horizon of 5+ years primarily in large to mid-cap sectors. An investment in a Reliance Tax Saver Fund is worth the risk.
How do I buy Reliance Tax Saver fund online?
An investor can invest in Reliance Tax Saver ELSS Fund via the AMC’s official website - reliancemutual.com and select the ELSS section in order to download the application form.
What is Reliance Tax Saver Fund Company's Contact Number?
You can contact Reliance Tax Saver Fund Company at 1800 300 11111.
What type of investor should invest in a smallcap scheme of Reliance Tax Saver Fund?
Investors looking for an investment horizon of 5+ years primarily in large to mid-cap sectors should definitely invest in Reliance Tax Saver ELSS Fund.
Which Reliance Tax Saver Fund scheme should I invest in?
There are three options within this fund - growth, direct and dividend option. You can select any one of the three depending on your need for dividend payout or not.