Aditya Birla Sunlife Tax Relief ’96 Fund is an open-ended scheme which is designed to cater the needs of a large number of investors. Further, it seeks to achieve long-term growth of capital through a portfolio with a target allocation comprising of 80 per cent in equity & the remaining 20 per cent in debt and money market securities. Launched on the 29th of March, 1996, this open-ended Equity Linked Savings Scheme(ELSS) is regarded as one of the best ELSS funds while also been ranked amongst the best performing mutual funds in India. Since July 1999, however, this fund was converted to an open-ended scheme. A combination of top-down & bottom-up approach is followed in the stock selection process. Further, this tax saving mutual fund has been ranked second in the ‘ELSS category’ by CRISIL, for the quarter ended December 2017, a rank which has remained unchanged from the previous quarter. If you’re looking to make a one-time investment in this fund, the minimum investment required is Rs. 500. Similarly, if you’re planning to opt for SIP Investment, the minimum SIP is Rs. 500 per month as well. This fund also holds the distinction of being a 4-star rated fund as per Morningstar.
When opting for an ELSS scheme, investors will be able to save taxes as the returns in this mutual fund investment are absolutely tax-free under Section 80C of the Income Tax Act 1961. However, it needs to be mentioned that this is applicable only if you stay invested for at least a period of three years. Needless to say, investors with a long-term horizon in mind can stand to create a substantial wealth if they invest in this tax saver mutual fund. Over the course of the past decade, this tax saving mutual fund has managed to outperform its peers as well. This fund is being managed by renowned stock-picker Ajay Garg who has been in charge of this fund for over a decade now. If you analyze this mutual fund investment over a ten year and a five-year period, it has always consistently been ranked amongst the top three funds in its category. This is because of the guidance and expertise displayed by Garg and his team. While selecting stocks, Mr. Garg and his fund management team adopt a multi-cap approach while making use of a combination of top-down & bottom-up strategy. Further, Mr. Garg is always on the lookout for quality organizations that have a strong professional management team in place while showcasing a great future potential growth which he believes can generate considerably high returns.
Mr. Garg’s research-intensive approach along with a sound investment strategy over nearly a decade helped this fund generate the desired results for its investors as the fund has managed to outperform the benchmark almost every time. Investors looking for tax-free dividends can choose to invest in the dividend option of the scheme as this fund also boasts of a splendid dividend pay-out record. Investors looking to invest in the dividend option of the scheme can take encouragement from the fact that this mutual fund investment has managed to pay dividends every year over the last decade, even during the bear market phases. With such a well-diversified portfolio and backed by a great fund management team, tax saving mutual fund has successfully managed to achieve and even surpass all its set targets. If you’re looking to invest in one of the top performing mutual funds in India which has consistently outperformed the ELSS category in terms of returns, then look no further than Aditya Birla Sunlife Tax Relief ’96 Fund.
Investors looking to create wealth, take care of lifestyle demands such as buying a car or a house along with other medium to long-term aspirations should definitely look to invest in this fund. If you are thinking of making an investment in one of the top performing mutual funds, connect with our financial advisors and we would help you get started on your investment journey with a variety of customized investment plans. Our experts are available at all times and will be more than glad to answer all your queries about the best mutual fund to invest in full earnest.