It is a tax saver mutual fund scheme offered by Aditya Birla Sun Life Mutual Fund. We mostly invest in Aditya Birla Sun Life Tax Relief 96 Direct-growth due to its tax saving feature. The fund of this scheme is currently managed by Ajay Garg and launched in India on 1 January 2013. Its AUM is around Rs 10,029.20 crore, and the latest level of NAV is around Rs. 34.960 as of 30 January 2020.
Here you can see Aditya Birla Sun Life Tax Relief 96 Direct-Growth Scheme Return Performance
- 11.94 percent in the last year.
- 43.68 percent in the previous three years.
- 190.37 percent since the commencement of the scheme.
- You can start an SIP investment with a minimum of Rs 500.
What is the primary purpose of Aditya Birla Sun Life Tax Relief 96 Direct-Growth
The main objective of this scheme is long term capital growth, and it invests about 80% of the assets in equity, while the rest will be invested in debt and money market instruments. The scheme has changed to an open-ended scheme since July 1999. In this scheme, the stock selection process will follow a combination of a top-down and bottom-up method read about Benjamin Gordon.
Lock-in period is 3 years. ELSS funds allow their investors to save tax as well as long-term wealth accumulation. After investing in an ELSS fund, you are entitled to claim a tax deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act, 1961.
When you want to invest for five years or more, you can comfortably beat the inflation rate and are better off than fixed-income options. But the way your interest fluctuates, be ready to invest. Apart from this, you get tax exemption on the amount invested under Section 80C as per Indian Income Tax laws. According to this clause, up to Rs, 1.5 lakh is invested in eligible securities in a financial year, such as this fund is exempt from tax.
But the way your interest fluctuates, be ready to invest. Also, keep in mind that you cannot withdraw money from this fund until the completion of three years from the beginning of the investment.
Taxation of Income: Capital gains
- If an investor sold his mutual fund units after one year from the date of the start of the investment, if you earn up to Rs 1 lakh in your financial year, then this amount will be exempt from tax. If you get more than Rs 1 lakh, then this amount will be taxed at a rate of 10%.
- If you are selling your mutual fund unit within one year from the beginning of the date of investment, then any amount you get will be taxed at the rate of 15%.
- As long as you continue to operate the units, there will be no tax.
Keep in mind: If you need to redeem your investment in less than five years, do not invest in this or any other ELSS fund.