Fincash » DSP BlackRock Tax Saver Vs Birla Sun Life Tax Relief
Table of Contents
DSP BlackRock tax saver Fund and Aditya Birla Sun Life Tax Relief ’96 both form part of ELSS category. These schemes are also known as Tax Saving Mutual Fund. ELSS Mutual Funds are the ones that give investors the benefits of both Investing as well as a tax Deduction. People investing in these schemes can claim a tax deduction of up to INR 1,50,000 under Section 80C of income tax Act, 1961. Being a tax saver scheme, they have a lock-in period of three years. Their lock-in period is the shortest as compared to other tax saver schemes. Though DSP BlackRock Tax Saver Fund and Aditya Birla Sun Life Tax Relief ’96 belong to the same category yet; there are differences in their performance, AUM, current NAV. So, let us understand the differences between both the schemes through this article.
DSP BlackRock Tax Saver Fund is a part of DSP BlackRock Mutual Fund. This scheme is an open-ended tax savings scheme and was launched in the year since 2007. The investment objective of the scheme is to ensure Capital growth in the long-term from a Portfolio that predominantly consists of equity and equity-related instruments of various companies. Along with the capital growth, the scheme also ensures that investors can claim a tax deduction from total Income.
As on January 31, 2018, the Top 5 Stocks of DSP BlackRock Tax Saver Fund included HDFC Bank Limited, ICICI Bank Limited, Tata Steel Limited, State Bank of India, and Larsen & Toubro Limited.
The scheme invests in shares across Market capitalization with a preference towards Large Cap Stocks.
Aditya Birla Sun Life Tax Relief ’96 is managed by Aditya Birla Sun Life Mutual Fund. The scheme was incepted on March 28, 1996. The investment objective of the scheme is to help investors in the process of wealth creation along with saving Taxes. The highlights of the scheme are tax benefits under Section 80C and higher returns in line with Inflation. Birla Sun Life Tax Relief ’96 uses a combination of top-down and bottom-up approach in the process of selecting stocks. It uses the top-down approach to analyze various parameters related to the macroeconomic factors, infrastructure spending, key policy changes, and so on. Additionally, the bottom-up approach seeks to identify companies with high profitability.
As on January 31, 2018, some of the top constituents that form part of Birla Sun Life Tax Relief ’96’s portfolio include Sundaram-Clayton Limited, Honeywell India Automation Limited, and Gillette India Limited.
Though both the schemes belong to the same category, however, it is not compulsory that both the schemes have the same understanding. So, let us compare the schemes across various elements which are divided into four sections, namely, Basics section, Performance Section, Yearly Performance Section, and Other Details Section. These sections are discussed as follows.
The various comparable parameters that form part of Basics Section include Current NAV, AUM, expense ratio, Fincash Ratings, Category of the Scheme, and much more. To begin with the Scheme Category, it can be said that both the schemes belong to the same category that is Equity ELSS.
As perFincash Rating, it can be said that both DSP BlackRock Tax Saver Fund and Birla Sun Life Tax Relief ’96 Fund are rated as 4-Stars.
The summary of this section is tabulated as follows.
Parameters Basics NAV Net Assets (Cr) Launch Date Rating Category Sub Cat. Category Rank Risk Expense Ratio Sharpe Ratio Information Ratio Alpha Ratio Benchmark Exit Load DSP BlackRock Tax Saver Fund
Growth
Fund Details ₹136.931 ↑ 0.12 (0.08 %) ₹17,771 on 30 Sep 24 18 Jan 07 ☆☆☆☆ Equity ELSS 12 Moderately High 1.78 2.71 0.71 2.74 Not Available NIL Aditya Birla Sun Life Tax Relief '96
Growth
Fund Details ₹58.38 ↑ 0.11 (0.19 %) ₹17,102 on 30 Sep 24 6 Mar 08 ☆☆☆☆ Equity ELSS 4 Moderately High 1.69 2.51 -1.82 -0.41 Not Available NIL
The performance section compares the Compounded Annual Growth Rate or CAGR returns for both the schemes. These returns are compared at various time frames such as 1 Month Return, 6 Month Return, 3 Year Return, and Return since Inception. On a hindsight, it can be said that there is not much difference between the returns generated by both the schemes. At certain time intervals, the returns earned by DSP BlackRock Tax Saver Fund is higher while in others the returns of Birla Sun Life Tax Relief ’96 is higher. The Summary of this section is tabulated as follows.
Parameters Performance 1 Month 3 Month 6 Month 1 Year 3 Year 5 Year Since launch DSP BlackRock Tax Saver Fund
Growth
Fund Details -5.2% -2% 15% 46.5% 18.6% 21.8% 15.9% Aditya Birla Sun Life Tax Relief '96
Growth
Fund Details -6.5% -3.3% 10% 34.4% 11.3% 12.7% 11.2%
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The yearly performance scheme compares the Absolute Return generated by both the schemes in a particular year. In case of yearly performance, the returns of Aditya Birla Sun Life Tax Relief ’96 is higher than that of DSP BlackRock Mutual Fund. The table given below shows the summary comparison for both the schemes.
Parameters Yearly Performance 2023 2022 2021 2020 2019 DSP BlackRock Tax Saver Fund
Growth
Fund Details 30% 4.5% 35.1% 15% 14.8% Aditya Birla Sun Life Tax Relief '96
Growth
Fund Details 18.9% -1.4% 12.7% 15.2% 4.3%
This is the last section in case of comparison between two schemes. The parameters that form part of this section include Minimum SIP investment and Minimum lumpsum investment. With respect to the Minimum Lumpsum and SIP Investment, it can be said that the minimum SIP and lumpsum investment amount is the same in both the cases that is, INR 500. Moving on to the next parameter, that is, AUM, it can be said that the AUM of Birla is more than that of DSP BlackRock.
The various parameters of Other Details section are summarized in the table as follows.
DSP BlackRock Tax Saver Fund is managed solely by Mr. Rohit Singhania.
Birla Sun Life Tax Relief ’96 is solely managed by Mr. Ajay Garg.
Parameters Other Details Min SIP Investment Min Investment Fund Manager DSP BlackRock Tax Saver Fund
Growth
Fund Details ₹500 ₹500 Rohit Singhania - 9.22 Yr. Aditya Birla Sun Life Tax Relief '96
Growth
Fund Details ₹500 ₹500 Atul Penkar - 2.75 Yr.
DSP BlackRock Tax Saver Fund
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹9,666 31 Oct 21 ₹16,099 31 Oct 22 ₹16,365 31 Oct 23 ₹18,337 31 Oct 24 ₹26,861 Aditya Birla Sun Life Tax Relief '96
Growth
Fund Details Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹9,854 31 Oct 21 ₹13,173 31 Oct 22 ₹12,822 31 Oct 23 ₹13,525 31 Oct 24 ₹18,181
DSP BlackRock Tax Saver Fund
Growth
Fund Details Asset Allocation
Asset Class Value Cash 3.28% Equity 96.72% Equity Sector Allocation
Sector Value Financial Services 35.6% Consumer Cyclical 9.98% Basic Materials 9.24% Industrials 8.16% Technology 7.94% Health Care 7.43% Consumer Defensive 5.49% Energy 4.88% Utility 4.11% Communication Services 3.9% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 08 | HDFCBANK9% ₹1,541 Cr 8,899,468
↑ 980,097 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 16 | ICICIBANK7% ₹1,213 Cr 9,528,194
↑ 491,010 State Bank of India (Financial Services)
Equity, Since 30 Jun 20 | SBIN3% ₹616 Cr 7,824,291
↓ -552,125 Infosys Ltd (Technology)
Equity, Since 31 Mar 12 | INFY3% ₹603 Cr 3,215,957 Axis Bank Ltd (Financial Services)
Equity, Since 30 Nov 18 | 5322153% ₹581 Cr 4,716,056 Hindustan Unilever Ltd (Consumer Defensive)
Equity, Since 30 Nov 22 | HINDUNILVR2% ₹442 Cr 1,495,324
↑ 33,982 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Oct 22 | KOTAKBANK2% ₹423 Cr 2,279,605
↑ 240,409 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 30 Nov 21 | M&M2% ₹401 Cr 1,294,144 Samvardhana Motherson International Ltd (Consumer Cyclical)
Equity, Since 31 Dec 22 | MOTHERSON2% ₹396 Cr 18,718,335 NTPC Ltd (Utilities)
Equity, Since 31 Jan 19 | 5325552% ₹395 Cr 8,907,565 Aditya Birla Sun Life Tax Relief '96
Growth
Fund Details Asset Allocation
Asset Class Value Cash 1.07% Equity 98.93% Equity Sector Allocation
Sector Value Financial Services 26.38% Consumer Cyclical 18.88% Industrials 11.11% Health Care 8.83% Basic Materials 8.71% Energy 7.43% Technology 6.63% Consumer Defensive 4.89% Communication Services 3.15% Utility 1.47% Real Estate 1.46% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 09 | ICICIBANK7% ₹1,163 Cr 9,137,798 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Jul 08 | HDFCBANK5% ₹886 Cr 5,115,495 Infosys Ltd (Technology)
Equity, Since 30 Jun 08 | INFY5% ₹831 Cr 4,431,429
↓ -700,000 Reliance Industries Ltd (Energy)
Equity, Since 30 Nov 21 | RELIANCE5% ₹786 Cr 2,660,213 Larsen & Toubro Ltd (Industrials)
Equity, Since 30 Jun 08 | LT5% ₹770 Cr 2,095,752 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Dec 22 | BHARTIARTL3% ₹538 Cr 3,146,277 Fortis Healthcare Ltd (Healthcare)
Equity, Since 31 Jan 20 | 5328433% ₹514 Cr 8,360,144 TVS Holdings Ltd (Consumer Cyclical)
Equity, Since 31 Aug 23 | 5200563% ₹433 Cr 302,632 Axis Bank Ltd (Financial Services)
Equity, Since 30 Jun 08 | 5322152% ₹418 Cr 3,388,737 Honeywell Automation India Ltd (Industrials)
Equity, Since 30 Jun 08 | HONAUT2% ₹395 Cr 80,589
Thus, from the above pointers, it can be said that there is a lot of difference between both the schemes though they belong to the same category. Therefore, people should be very careful before investing in a scheme by understanding its modalities completely. In addition, they should also check whether the scheme is in-line with their objectives or not. Individuals can even seek advice from financial advisors. This will help them to attain their objectives on time in a hassle-free manner.
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