Type or nature of fund
Birla Sun Life Tax Plan is an open ended Equity Linked Savings Scheme (ELSS) with a lock-in of 3 years from the date of allotment.
Investment objective
The investment objective of Birla Sun Life Tax Plan scheme is to generate long term capital along with income tax relief for your investment.
Fund information
| Inception date | 16th February, 1999 |
| CRISIL rank | Birla Sun Life Tax Plan is ranked 3 under Equity Linked Savings Scheme. |
| Plans | Regular and Direct. |
| Options | Dividend Growth |
| Schemes |
|
| Entry load | NIL |
| Exit load | NIL |
| Minimum investment |
Fresh purchase: Minimum – Rs.500 and thereafter in multiples of Re.1 Additional purchase: Minimum – Rs.500 and thereafter in multiples of Re.1 |
| SIP | Monthly minimum: Rs.500 |
| Product label – Risk and target investors |
Risk : Moderately high risk Target Investors: This product is suitable for investors who are seeking long term capital growth and those who wish to invest in equities and equity related securities and who wish to avail tax benefit under Section 80C provided that they are eligible for it. |
| Benchmark | S&P BSE Sensex is the benchmark. S&P BSE Sensex is S&P Bombay Stock Exchange Sensitive Index. It is also called as BSE 30 or simply the Sensex. It is a free-float market weighted stock market index of 30 financially sound and well established companies listed. It is regarded as the pulse of the domestic stock markets in India. |
| SWP | No, investors do not have the option withdrawal plan. |
| STP |
Systematic Transfer Plan is available for Birla Sun Life Tax Plan. This allows the investor to invest in debt oriented schemes with stable returns and the investor can systematically transfer to an equity oriented scheme and take advantage of their wealth creating potential. Birla Sun Life Tax Plan allows Transfer IN facility. |
| Redemption | NIL |
| Taxation (on investment and on redemption) | Each investor is advised to consult his own tax advisors with respect to the specific amount of tax and other implications arising out of his participation in the scheme. |
Fund manager
Mr. Ajay Garg is a Senior Fund Manager for Birla Sun Life. He is 40 years old. He has a Bachelors in Electronic Engineering and has a MBA in Finance. Mr. Ajay has over 15 years of work experience in financial services. Before he joined Birla Sun Life Asset Management Company Ltd. he was working with Birla Sun Life Securities Ltd.
Investment philosophy or strategy
The Scheme adopts the bottom-up approach of investing. The Fund will search for individual stocks that are performing well. This approach takes into consideration that individual corporations also can do well even though its industry is not doing well. The investment emphasis is to identify companies with strong competitive position in good businesses, and having quality managements and those focusing on long term fundamentally driven values. The fixed income investment strategy emphasises investment in instruments that generate consistently superior yields at lower levels of risk.
Portfolio – Sector / Top 10 holdings
| Issuer | Sector | Percentage |
| Sundaram Clayton Ltd. | Automotive | 5.94 |
| Honeywell Automation India Ltd. | Telecommunication | 5.59 |
| Bayer CropScience Ltd. | Chemicals | 5.31 |
| ICRA Ltd. | Miscellaneous | 4.86 |
| Kotak Mahindra Bank Ltd. | Banking/ Finance | 4.22 |
| MRF Ltd. | Automotive | 3.59 |
| Zee Entertainment Enterprises Ltd. | Media and entertainment | 3.07 |
| Sterling Holiday Resorts India Ltd. | Services | 3.04 |
| Pfizer Ltd. | Pharmaceuticals | 3.01 |
| Bosch Ltd. | Automotive | 2.93 |
Risk measures
| Sharpe | As on 31st July, 2015 it is 1.53. |
| Alpha | NA. |
| Beta | As on 31st July, 2015 it is 0.95 |
| Standard Deviation | As on 31st July, 2015 it is 14.34%. |
Performance
| AUM for April- June 2015 | Rs.263.07 crores | ||||||||||||||||||||
| NAV (as on 30th June, 2015) |
Regular Plan- Growth: Rs.28.28 Dividend: Rs.78.58 Direct Plan- Growth: Rs.28.93 Dividend: Rs.95.22 |
||||||||||||||||||||
| Returns and Benchmark comparison |
|
||||||||||||||||||||
| Expenses |
|
Expert view of the fund + outlook
The Birla Sun Life Tax Plan pursues long term capital appreciation along with income tax relief for investment. It invests on mid cap and small cap companies. This scheme is suitable for saving on tax outgo, creating wealth and to meet requirements of lifestyle needs. This scheme is however not suitable to fund your child’s education or marriage. Don’t take this scheme if you are planning on using it for retirement or to buy a house. The investor needs to know that there is a lock-in period of 3 years on the fund. New investors can skip this fund. If you have already invested, keep a close eye on its performance. Those who invest in this fund are qualified for tax benefits under section 80C ELSS. This infers that you can invest up to Rs.1 lakh a year in this fund and the amount will be deducted from your gross total income while your income tax is being computed.
How to apply – online + distributors
You can buy the Birla Sun Life Tax Plan through both the online and offline platforms. For applying through the online platform, you just have to visit the Mutual Fund Birla Sun Life webpage. You can invest online or you can ask for an advisor. The webpage has an application form available, which you can fill and submit. To invest online, you need to fill in your username or your folio number and your password that has been provided to you. You also need to key in your PAN card details as and when required.
In order to apply offline, you will have to physically approach the Birla Sun Life branch and submit your KYC form. You will then have to fill up all the application forms and then submit the form at the respective counter. If needed, you can also ask the executives to give you further clarification on the fund.
