Mirae Asset Tax Saver Fund is among the most popular ELSS funds available in the market. This fund was launched on December 28, 2015, and has been managed by Neelesh Surana. This fund aims to invest in stocks and equity-related instruments across various market caps, investment themes and investment styles to generate long-term appreciation and wealth while providing tax savings under section 80C of the Income Tax Act of 1961.
Neelesh Surana has invested in dominant players in all major sectors, which provides great stability to the portfolio. This is reflected in its high beta of 0.95. The program performed well regularly as compared to benchmarks and peers in the ELSS category. In the last three years, the fund has returned 17.65%.
The main objective of Mirae Asset Tax Saver Fund is to generate a long-term appreciation of capital from a diversified portfolio. Like all other mutual fund plans that save taxes, this fund also does not guarantee any returns, irrespective of its past performance.
The benchmark for this fund is NIFTY 200. The minimum investment is 500 rupees monthly or quarterly and in multiples of 500 rupees / - thereafter.
One should consider the Mirae Asset Tax Saver Fund because of its allocations which are spread across large caps, mid-caps and small caps in a ratio of 74.32%, 17.56% and 7.33% respectively from its total Assets Under Management. Cash holdings constitute 0.79% of the total assets.
This holding composition provides diversification, growth opportunities as well as less volatility to the investment considering that almost all kinds of companies are part of the portfolio in a decreasing correlation with their expected volatility.
The monthly average expense ratio (including Statutory Levies) as on November 2019 is 2.19% for the regular plan and o.23% for the direct plan. Expense ratio is the commission charged by mutual fund houses from their investors as a fee for their services of the overall management of the fund allocation.
Before investing in a tax saving mutual fund, you have to analyze various risk ratios which offer a peek into the fund’s risk profile. These ratios are Volatility (Standard Deviation), Beta, Sharpe Ratio, Treynor's Ratio and Jenson’s Alpha.
The Net Asset Value (NAV) of Mirae Asset Tax Saver Fund in both growth option and Dividend option is also very lucrative considering the current pricing in the market.
The performance report of the Mirae Asset Tax Saver Fund shows that its returns have been above the scheme benchmarks and additional benchmarks.
The performance report of the Mirae Asset Tax Saver Fund is very impressive. The return on investment of the last one year is 8.84%, last 3 years is 13.86% and from inception, it is 16.41%. If you invested Rs 10,000 in Dec 2015, today your asset value would be Rs 17,703. In comparison, benchmark indices Nifty 200 and S&P BSE Sensex would have returned Rs 14,854 and Rs 15,616 respectively in the same period.
If we compare the last 3-year return on Mirae Asset Tax Saver Fund, scheme benchmark and additional benchmark, the Mirae Asset Tax Saver Fund has a higher return and it is 13.86% as compared to 10.08% of scheme benchmark and 12.92% of additional benchmarks. From its inception on 28th December 2015, the Mirae Asset Tax Saver Fund has given the highest return compared to scheme benchmarks and additional benchmarks. it is 16.41% as compared to 11.10% of scheme benchmark and 12.59% of additional benchmarks.
The SIP performance of Mirae Asset Tax Saver Fund is also very impressive making it a strong contender in the ELSS category.
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