DSP ELSS Tax Saver Fund (Growth)

DSP Tax Saver Fund (Growth) is an open-ended equity-linked savings scheme. Being a savings scheme, it provides a tax benefit of up to Rs 1.5 lakhs. An equity-linked savings scheme provides long-term capital appreciation and growth along with tax savings under Direct Taxes. The fund maintains a diversified portfolio of strong companies at reasonable prices across different industries and sectors. Furthermore, the fund invests in a portfolio of stocks belonging to different sectors, market capitalization, and asset types. The scheme follows a bottom-up investment approach which is driven by value investing in growth and appreciation-focused business models. 

As of 3rd April 2022, DSP Tax Saver Fund (Growth) has invested 98.4% in equity and equity related securities. While the remainder of the asset allocation is towards debt and fixed income instruments. The fund has a mandatory lock-in period of 3 years. After maturity, you can either withdraw the funds or stay invested in the scheme. 

Investment Objective of DSP Tax Saver Fund (Growth)

DSP Tax Saver Fund (Growth) aims to generate medium to long-term capital appreciation. Owing to its investment objective, the fund invests in a diversified portfolio comprising equity and equity related securities of corporates. It invests in established as well as emerging companies across market caps to provide a combination of growth & stability. 

The prescribed allocation is 80% – 100% in Equity Securities and 0% – 20% in Debt and Money Market Securities including ADRs, GDRs and foreign securities. The fund also enables its investors to avail of a tax deduction from total income as per the Income Tax Act, 1961. 

Scheme Details of DSP Tax Saver Fund (Growth)

DSP Mutual Fund launched the DSP Tax Saver Fund (Growth) on 18th January 2007 under the tax saving category. With an existence of over 15 years, the fund continues to generate medium to long-term capital appreciation along with tax savings.

• NAV and Returns – The NAV of the fund as of 4th April 2022 is Rs 81.026. The risk-o-meter of the fund is very high risk. Hence, an investor must understand that their principal amount of investment will be at very high risk. DSP Tax Saver Fund (Growth) has delivered consistent returns of 14.80% since its launch. 
• Minimum Investment – For a SIP investment, the fund mandates a minimum SIP investment of Rs 500. To make a lump sum investment an investor must invest a minimum amount of Rs 500.
• Expense Ratio and Exit Load – The fund charges an expense ratio of 1.80% on the units of the mutual funds at the NAV. No exit load is charged by the scheme. 
• Fund Manager – The fund managers are Charanjit Singh and Rohit Singhania. Mr Singh holds a bachelor’s degree in electronics and communication as well as an MBA in finance and systems. Prior to joining DSP Mutual Fund, he worked with B&K Securities India in Capital Goods, Power & Infra, Axis Capital Ltd. in Capital Goods and Infra, BNP Paribas India Securities, Thomas Weisel Partners, HSBC, IDC Corp., and Frost & Sullivan in Capital Goods and Infra. Mr Singhania has been managing the scheme since July 2015. Earlier, he has worked with HDFC Securities Ltd. and IL&FS Investsmart Limited.
• Other Details – Being an ELSS fund, the fund has a mandatory 3 year lock-in period from the date on which investment is made. Hence, an investor cannot make any redemption before the maturity period of 3 years. The AUM of DSP Tax Saver Fund (Growth) is Rs 10,802.014 cr as on 4th April 2022. The fund benchmarks to IISL Nifty 500 TR INR.

Growth Review

Scripbox recommends DSP Tax Saver Fund (Growth) within the equity-linked tax saving mutual fund category. Equity-Linked Tax saving mutual funds provide wealth appreciation coupled with a tax benefit under the Income Tax Act 1961 against a lock-in period of 3 years.

The fund holds a good rank on the basis of average 1 year rolling return – 22.04% and average 3 years rolling return – 19.01%. Returns were calculated based on 1 year and 3 years rolling returns rolled monthly for the last 4 years. Trailing returns have a recency bias and point to point returns are specific to the period in consideration. Rolling returns, on the other hand, measures the fund’s absolute and relative performance across all timescales, without bias.

• The fund is in the top 5 based on the quarterly outperformance count in the category. Out of 16 quarters the fund has outperformed the category average 10 times.
• The fund is in the top 5 based on information ratio in the category. The information ratio is used to evaluate the skill of a portfolio manager at generating returns more than a given benchmark.

With an AUM value of 9397.02 Cr. The fund is in the top 10 in the category.

1. With an existence of over 15 years, the fund has a sufficient history for analysis of the fund. Moreover, over these years the track record of the fund has been good. 
2. Owing to its AUM or relative size of Rs 9,397 cr, the fund is considered a leader within the tax-saving mutual fund category.
3. Since its launch the fund has performed well and provided inflation-beating returns in agreement with its investment objective.

Fund Performance

Annualised Returns

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Asset Allocation

Asset Allocation as per Asset Type

Asset Allocation As per Sector

Frequently Asked Questions

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