Why Mirae Asset Tax Saver Fund Should be Your First Tax-Saving Choice?
For a taxpayer, the biggest problem is to keep his tax expense within budget, and for doing this he often ends up paying huge fees to a tax consultant. So, at the outset it really doesn’t matter if the tax consultant is able to save you some money, as his fees will mitigate the gap and the overall expenditure will remain the same.
The simplest solution to keep high taxes at bay is investing in Mirae Asset Tax Saver Fund. It is one of the best ELSS schemes available in India with one of the highest paying scales ever recorded for an ELSS fund.
Here’s a detailed account on Mirae Tax Saver brought to you by MySIPonline. Let’s read to know what this fund holds in its womb for you.
Know the Portfolio Construction
Mirae Asset Tax Saver Fund – Regular Plan (G) is a pure equity fund with over 98% of its assets stuffed in equity and related instruments, whereas the remainder is reserved for cash and cash equivalents. There are three kinds of stocks present in the portfolio – giant & large caps, midcaps, and small caps. Giant & large cap stocks have been kept in the highest ratio which tantamount to 75.10%. The second highest space is reserved for midcap stocks at 19.49%, whereas small cap stocks share the least occupancy with 5.41%.
This diverse setup of stocks tell-tales that Mirae Asset Tax Saver Fund follows a robust investment policy, and that it is capable of staying relatively stable in rough markets.
Besides internal allocation of stocks, sector allocation also plays a vital role in deciding the fate of the stock. Mirae Tax Saver Fund (Growth) has pinned its wealth on high-performing industries such as Financial & Banking (35.09%), Energy (10.74%), Technology (9.27%), FMCG (8.66%), and Automobile (6.26%). These industries have been producing great wealth lately and thus, are an excellent venture for future investments geared toward wealth building.
Mirae Asset Tax Saver Fund has chosen companies within the abovementioned industries that hold a low P/E ratio and provide good returns. The top holdings are with successful companies that have a reasonable stake in the portfolio, which includes HDFC Bank (8.81%), ICICI Bank (5.92%), Reliance Industries (4.63%), Axis Bank (3.94%), and Infosys (3.75%). These companies have a P/E ratio floating within the range of 20-30, and have excellent past performance record.
One of the most important parameters to judge a fund’s worth is its past performance. Mirae Asset Tax Saver Fund (G) has been ranked very high in comparison to its peers, and stands at undisputed in the league of best ELSS funds to invest in India. Let’s have a look at the past performance earned by the fund: -
Returns Since Inception : Since its inception in 2015, Mirae Tax Saver Fund has performed superbly in the market. With an average yield to date of 18.63% since inception, it remains one of the highest paying mutual funds in India.
Returns in the Last Three Years : The last three years’ performance has placed Mirae Tax Saver at the no. 1 spot among its peers. On an average, the fund earned 19.85% returns which is an excellent yield for a fund of any breed.
So, if you are planning to invest in mutual funds this year but don’t have any leads, then you should start with Mirae Asset Tax Saver Fund – Regular Plan (G). Besides lucrative returns, it also bestows a tax-saving of up to ₹46, 800. Buy an SIP plan online in this fund through MySIPonline for a flawless investing experience.