DSP Tax Saver Fund: Healthy long-term track record
ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.
HOW HAS THE FUND PERFORMED?
With a 10-year return of 19.28%, the fund has outperformed both the benchmark index (16.82%) and the category average (17.4%).
The fund has comfortably beaten both the index and the peers over the past decade.
ANNUALISED PERFORMANCE (%)
The fund has outperformed over past 3- and 5-year periods.
YEARLY PERFORMANCE (%)
The fund has lagged behind peers in last two years.
Date of launch: 18 JAN 2007
Average AUM: Rs 4,674.73 CR
Benchmark: NIFTY 500 Total Return Index
*As on 5 FEB 2019
WHAT IT COSTS
Growth option: Rs 44
Dividend: Rs 15
Minimum investment: Rs 500
expense ratio (%): 2.26
Exit load: 1% for redemption within 365 days
*As on 5 FEB 2019
Tenure: 3 years and 6 months
WHERE DOES THE FUND INVEST?
The fund maintains a large-cap focus.
TOP 5 SECTORS IN PORTFOLIO (%)
The fund’s is heavily invested in financials.
TOP 5 STOCKS IN PORTFOLIO (%)
The fund is highly diversified, yet takes large exposures in its top bets.
HOW RISKY IS IT?
The fund’s risk-return profile is superior to many peers.
Wherever not specified, data as on 31 DEC 2018.
Source: VALUE RESEARCH
SHOULD YOU BUY?
This tax-saving fund retains a tilt towards large-caps, like many peers in its category. It has also maintained its large exposure to the financial sector—currently, 39% of its portfolio. While the portfolio size has not changed much in recent years, the fund currently takes larger positions in its top bets.
This allows the high-conviction bets to have a meaningful influence on the fund’s return. The portfolio turnover is on the higher side, which indicates that the fund manager seeks to capitalise on emerging trends. The fund has a solid long-term track record and has consistently beaten its category average, barring the past two years. The fund’s risk profile has changed, and now it exhibits higher volatility. Yet, it enjoys a healthier risk-return profile compared to many peers.