Save Tax up to Rs. 46,350 with HDFC Tax Saver Fund

Dealing with financial matters is not everyone’s cup of tea, only the professionals can do it. But when it comes to tax saving, every individual wants to plan the best to reduce the tax load from their income. With HDFC Tax Saver Fund, you can save tax up to Rs. 46,350 every year. As per Section 80C of Income Tax Act, 1961, it is provided that an individual can reduce the taxable income by up to Rs. 1.5 lakh to save tax in a financial year.

Introduction:

HDFC Tax Saver Fund (Growth) was launched on March 31, 1996, by HDFC Mutual Fund. It is a growth-oriented and open-ended scheme with features which help the investors in reducing their tax liability. The total asset under management of this fund amounts to Rs. 6,309 crore as on April 30, 2017. HDFC Tax Saver Growth NAV is recorded at Rs. 493.248 as on 8th June, 2017, which depicts the per unit market value of this fund.

Investment Objective:

It is an equity linked savings scheme which primarily aims towards capital appreciation while allowing the investors to save tax. The total assets of this scheme are diversified among various investments with a greater part in the equity shares and relatively small part in the debt securities.

Performance Analysis:

This fund is continuously providing the best possible results in the capital growth and reducing the tax burden of the investors. It has recorded an annual return of 99.07 per cent in the year 2009-10, while beating the ELSS category and benchmark, i.e., Nifty 500. The three- and five-years trailing returns are tracked at 11.71 per cent and 18.66 per cent respectively. 

Portfolio Analysis:

HDFC Tax Saver Fund has a diversified portfolio with investments in various sectors out of which a greater share is invested in the financial, energy, engineering, and automobile industries. This fund has equity exposure to around 95 per cent and the remaining portion is invested in the debt securities. The top holdings of this scheme are:

• ICICI Bank
• State Bank of India 
• GAIL
• Larsen & Toubro 
• Tata Motor DVR

The tax saving mutual fund investments are the best option to minimise the tax burden in a financial year. HDFC Tax Saver Fund is one of the most preferred ELSS schemes which has gained popularity and great possession in the market due to its performance.

Therefore, it can be concluded that HDFC Tax Saver Scheme has the potential to provide its investors with the tax benefits. This scheme is recommended by the financial advisors for the purpose of making 80C investments. There are portals like MySIPonline which provide online services to invest in the mutual funds, you can also avail the services by getting associated with them.