Double the Profits with Aditya Birla Sun Life Tax Relief 96 Fund (G)

ELSS funds are gaining huge popularity among investors and the major reason behind that is the dual benefits of tax saving and high returns that these schemes provide. Also, they have the lowest lock-in period among all the tax saving instruments that are included under section 80c. Today, we are going to discuss one of the best schemes from this category and will see that how you can save taxes by investing in it, and the name of the scheme is Aditya Birla Sun Life Tax Relief 96 Fund.

Scheme Details

This ELSS scheme was launched on Mar 29, 1996, with the objective to give investors high profits by investing majorly in equity instruments. As of now, it has 96.68% investment in equities and the remaining in debt and money market instruments. In equities, 40.89% investment is in large-caps, 50.52% in mid-caps. and 8.59% is in small-cap companies. This high distribution in mid-caps shows the partially aggressive style of investment which the fund manager follows. For seeing the stocks which this scheme has invested in, you can visit MySIPonline.

Aditya Birla Sun Life Tax Relief 96 Fund NAV as recorded on Aug 03, 2018, is Rs 164.9, and the asset size as on Jun 30, 2018, is worth Rs 6,187 crores. The returns given by the scheme in past 1, 3, and 5 years are 14.41%, 12.95%, and 24.49%, respectively (as on Aug 03, 2018), and with these returns, it has successfully outperformed both, benchmark as well as category. The minimum amount required to start an investment in this scheme is Rs 500, and you can start a SIP at MySIPonline for as low as Rs 500.

How Tax Saving Works?

As per SEBI, an investment up to Rs 1.5 lakh, made in Equity Linked Savings Schemes will be exempted from taxation. So, let's say your yearly income is Rs 5,50,000, and you make an investment of Rs 50,000 in Aditya Birla Sun Life Tax Relief 96 Fund Growth Plan. Now, if you hadn't made any investment, the total taxes would have been calculated on Rs 5,50,000, which would have been Rs 23,175 (including education cess). But, after you make an investment of Rs 50,000 in this scheme, the new taxable amount will be Rs 5,00,000 only, so the new tax return that you will have to make is of Rs 12,875. So, even before the scheme generates returns, you will be getting a direct profit of Rs 10,300, which is around 20% of your total invested amount.

Now, let's say you make an annual profit of 12% with this scheme, which equals Rs 6,000. So at the end of the year, the total profit that you will be making is of Rs 16,300, which is highly unlikely for a simple equity scheme to provide.

Now that you know that how the tax saving works in Aditya Birla Sun Life Tax Relief 96 Fund, don't wait till April, and start investing now to get the most from this scheme. If you have any query about it or want more tips on tax planning, then you can contact our experts at MySIPonline.