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Reliance Tax Saver Fund

Do you want to grow your money and save tax too? Then, Reliance Tax Saver Fund can be a suitable option. An ELSS is an Equity Linked Savings Scheme is a type of mutual fund scheme where most of the investment is put in equities.

The minimum lock-in period of investment in an ELSS is 3 years. This means that, if you start a Systematic Investment Plan (SIP) in an ELSS, then each of your investments will be locked in for 3 years from the respective investment date. Thus, an Equity Linked Saving Scheme or ELSS is a tax saving mutual fund where you can save upto ₹1.5 lakh in a financial year under Section 80C.

Reliance Tax Saver ELSS Fund

The ELSS fund was launched in 1995 with the primary investment objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments.

There are three types of Reliance Tax Saver Mutual Funds offered.

Growth Option - A growth option is where no dividend is paid to any of the investors. The gains and proceeds are reinvested back to the scheme in order to increase the Net Asset Value (NAV) over time. The purpose of reinvestment results in capital appreciation.

Direct Plan - A direct open ended fund, they come with a lower expense ratio but a higher NAV. The lower expense ratio is designed to provide a greater degree of capital appreciation in the long-term, (The fund provides higher returns over long-term investments).

Dividend Option - A dividend option is where an investor is entitled to dividends if the fund declares the same in the near future, this is offered in both direct and regular plans. The dividend amount is based on the number of units the investor holds and may feature either a payout option or a reinvest option. In the case of dividend payout, the dividend is automatically transferred to the investor’s bank account, while in the case of the dividend reinvest, the dividend earned is automatically converted to units of equal value and added to existing number of units of the fund.

Benefits of Reliance Tax Saver Plan

  • Transparent and Safe Investment Scheme: The Reliance Tax Saver ELSS Fund is a solid financial scheme with complete transparency and safety. Investors need not worry about incurring any losses with respect to this scheme.

  • No Complicated Formalities: Since the entire process of investment can be done online from the AMC’s website, there are lesser formalities and paperwork, making it easy and hassle-free for any investor.

  • Minimal Risks for Investors to Face: The Reliance Tax Saver ELSS Fund carries minimum risk with respect to market-linked returns. Long term investment and good fund management takes care of market volatility and returns.

  • Save Money on Capital Gains Tax Payments: Yes, one of the primary reason for investing in Reliance Tax Saver ELSS Fund is to save taxes and maximize capital gains at the same time. You can save upto ₹1.5 lakh in a financial year under Section 80C by investing in a Reliance Tax Saver ELSS Fund.

  • SIPs for a Smooth and Efficient Investment: A Systematic Investment Plan or an SIP is when you invest a regular amount on a monthly basis in a particular mutual fund. With Reliance Tax Saver Fund, you can start with as little as ₹500 per month, week or quarter. SIPs reduce the financial burden on your head as you don’t have to pay a lump sum amount for investment.

  • No Maximum Investment Limit: Although the minimum amount of investment in a Reliance Tax Saver ELSS Fund is ₹500, there is no cap on the maximum amount of investment. An investor can invest any amount of money in this fund on order to as many NAV units as they want.

  • Quick Payouts or Dividends: With respect to payouts, they are exercised in the form dividends. The dividends are distributed at the end of every financial quarter.

  • Investment Benefits for all People: There are no restrictions on the investor, everyone can invest in the Reliance Tax Saver ELSS Fund. Even senior citizens can avail tax exemption from this scheme.

Investment Objective of Reliance Tax Saver Fund

The primary objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments. The capital is expected to be generated through investments made in various equity investments as well as equity-related schemes, which feature a high potential for long-term growth along with a relatively high level of risk.

Investment Strategy Overview of Reliance Tax Saver Fund

The investment strategy of Reliance Tax Saver ELSS Fund is:

  • Reliance Tax Saver ELSS Fund is a balance between large cap and mid cap investments for the scheme.
  • The fund primarily seeks investment in potential leaders such as young companies featuring high growth prospects in the short to medium term (2 to 3 years).
  • A major portion of the equity investments available in the Reliance Tax Saver Scheme would be made in mid-cap companies that are expected to witness high growth in the near feature.
  • A key portion of the equity exposure in case of the Reliance Tax Saver (ELSS) Fund would include shares of key Multinational Companies listed on Indian stock markets.
  • The fund has a balanced portfolio in case of the overall macro considerations including balanced exposure to key themes such as defensive, consumptive and domestic.

Features of Reliance Tax Saver (ELSS) Fund

Key Features

Type Open ended ELSS
RiskModerately High
PlansThe following plans are offered under this scheme:
    Growth Plan
  • Growth Option
  • Dividend Plan
  • Dividend Payout Option
  • Annual Dividend Payout Option
  • Direct Plan - Growth Plan
  • Growth Option
  • Direct Plan - Dividend Plan
  • Dividend Payout Option
  • Annual Dividend Payout Option
OptionsGrowth option, Dividend Payout Option, Annual Dividend Payout Option

Growth Plan Option

Minimum investment amountRs.500 and in multiples of Rs.500 thereafter
Minimum additional investmentRs.500 and in multiples of Rs.500 thereafter
Minimum installment for Systematic Investment Plan (SIP)
  • Rs.500 in the first month and in multiples of Rs.500 thereafter for at least 12 months
  • Rs.1,000 in the first month and in multiples of Rs.500 thereafter for at least 6 months
  • Rs.500 in the first quarter and in multiples of Rs.500 thereafter for at least 12 quarters
  • Rs.1,500 in the first quarter and in multiples of Rs.500 thereafter for at least 4 quarters
  • Rs.5,000 in the first year and in multiples of Rs.500 thereafter for at least 2 years
Minimum installment for Systematic Transfer Plan (STP)
    Switch-in transactions
  • Daily option - Minimum of Rs.500 and in multiples of Rs.500 thereafter
  • Weekly/fortnightly/monthly option - Minimum of Rs.1,000 and in multiples of Rs.500 thereafter
  • Quarterly option - Minimum of Rs.3,000 and in multiples of Rs.500 thereafter
  • Switch-out transactions
  • Daily option - Minimum of Rs.100 and in multiples of Rs.100 thereafter
  • Weekly/fortnightly/monthly option - Minimum of Rs.1,000 and in multiples of Rs.100 thereafter
  • Quarterly option - Minimum of Rs.3,000 and in multiples of Rs.100 thereafter
Minimum installment for Systematic Withdrawal Plan (SWP)Rs.500 and in multiples of Rs.100 thereafter

Top Holdings which comprise the Reliance Tax Saver (ELSS) Fund

Investment SectorTop Holdings
Banking/FinanceState Bank of India, ICICI Bank, Axis Bank, Bank of Baroda, HDFC Bank, Yes Bank, Canara Bank, Reliance Capital Limited, etc.
Automobiles/Auto AncillariesTVS Motor Company, Federal-Mogul Goetze (India), Sundaram Clayton, Wheels India, etc.
Consumer Non-durablesITC Limited, Jubilant Foodworks, etc.
Ferrous MetalsTata Steel, Indian Metals, and Ferro Alloys, etc.
Industrial Capital GoodsHoneywell Automation India, ABB India, Siemens, BEML, GE T & D India, etc.
Industrial ProductsVesuvius India, KSB Pumps, Bharat Forge, etc.
SoftwareInfosys Limited, HCL Technologies Limited, etc.
MiscellaneousRamco Cements, The Indian Hotels Company, UPL Limited, Aurobindo Pharma, Trent Limited, Jet Airways, HDFC, etc.

Reliance Tax Saver Plan - Returns

SchemeReturns (%)Rank
1 month-4.474
3 months-6.745
6 months-2.229
1 year-5.949
2 years0.175
3 years33.65
5 years49.61

Who can invest in Reliance Tax Saver ELSS Fund?

  1. Resident adults living in India, either singly or jointly (maximum of three).
  2. Parents or legal guardians (on behalf of minors).
  3. A Hindu Undivided Family (HUF) through its Karta.
  4. Societies registered under Societies Registration Act, 1860.
  5. Companies and corporate bodies.
  6. Public sector undertakings.
  7. Banks, financial institutions, and investment institutions.
  8. Partnership firms.
  9. Other mutual funds registered with SEBI.
  10. Foreign institutional investors (FIIs) registered with SEBI.
  11. Foreign portfolio investors.
  12. Non-resident Indians and persons of Indian origin.
  13. Charitable and religious trusts.
  14. Eligible institutions of army, navy, air force, and other paramilitary organisations.
  15. Industrial research and scientific organisations.
  16. Insurance companies and corporations registered with the IRDA
  17. Overseas financial organisations that have invested in India.
  18. Retirement and employee benefit funds such as provident fund, pension, gratuity, etc.
  19. Qualified Foreign Investors.

How can I invest in Reliance Tax Saver ELSS Fund?

An investor can invest in Reliance Tax Saver ELSS Fund via the AMC’s official website - reliancemutual.com and select the ELSS section in order to download the application form. The investor will have to provide basic details such as identity and address proof (KYC). Submission of KYC documents are mandatory for investment is Reliance Tax Saver ELSS Fund. Post submission, the investor has to complete the process of in-person verification. Post verification, you can start investing.

FAQs on Reliance Tax Saver Fund

Can I invest in Reliance Tax Saver Fund?

Yes, you can invest in Reliance Tax Saver ELSS Fund if you want to create long term capital along with tax benefits.

Is it profitable to invest in Reliance Tax Saver (ELSS)?

Yes, the Reliance Tax Saver ELSS Fund has performed very well in the past with a return rate of 16.42%. This is a suitable option for investing in an ELSS scheme.

Should I think about investing in a Reliance Tax Saver (ELSS) Fund?

Yes, all ELSS schemes come with an option of switching funds via Systematic Transfer Plan.

Should I worry if my reliance ELSS tax saving mutual fund is not showing any appreciation in the last 4 months?

It is advisable that all equity investments should be held for a long term. You should not judge a fund’s performance just over 4 months. There can be negative returns in the short run but they are countered by the long terms benefits of the scheme.

Will it be good to invest for 5 yrs in Reliance Mutual Funds?

Yes, if you have a high risk appetite and want to gain higher returns with lesser volatility, this is one of the best tax savings funds available.

I want to invest in SIP of Rs.5000/- per month in Reliance Tax Saver.Is it worthwhile to invest?

Yes, if you are looking for an investment horizon of 5+ years primarily in large to mid-cap sectors. An investment in a Reliance Tax Saver Fund is worth the risk.

How do I buy Reliance Tax Saver fund online?

An investor can invest in Reliance Tax Saver ELSS Fund via the AMC’s official website - reliancemutual.com and select the ELSS section in order to download the application form.

What is Reliance Tax Saver Fund Company's Contact Number?

You can contact Reliance Tax Saver Fund Company at 1800 300 11111.

What type of investor should invest in a smallcap scheme of Reliance Tax Saver Fund?

Investors looking for an investment horizon of 5+ years primarily in large to mid-cap sectors should definitely invest in Reliance Tax Saver ELSS Fund.

Which Reliance Tax Saver Fund scheme should I invest in?

There are three options within this fund - growth, direct and dividend option. You can select any one of the three depending on your need for dividend payout or not.

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