DSP Blackrock Tax Saver Fund
Just like Fidelity Tax Advantage Fund DSP Blackrock Tax Saver Fund was launched as DSP Merrill Lynch Tax Saver Fund in November 2006. It is an open-ended scheme with which you can invest throughout the year without any entry load after the recent abolition of entry load by SEBI. It is just like any other ELSS funds targets primarily the equity market. It is from DSP BlackRock Mutual Fund which was previously known as DSP Merrill Lynch Mutual Fund.
With DSP Blackrock Tax saver fund you can save tax under section 80CC as it is an ELSS fund and hence you will need to put in your investment for 3 years at least as the minimum lock-in period which is applicable in any ELSS Mutual Fund available in India. Thus you get more exposure to both the rising and falling market.
- Allocation: The asset allocation is 80% equity and 20% debt.
- Options Available: It comes with both growth and dividend payout or reinvestment option.
- Lock-in Period: Minimum 3 years.
- Entry and Exit Load: Nil
You can buy a minimum purchase worth Rs. 500 and in multiples of Re. 1 thereafter. If you want to buy it via SIP, the minimum option is Rs. 1000. You can only repurchase DSP Blackrock Tax Saver Fund only after the completion of the existing three-year lock-in period of your existing fund.
The latest NAV as of January 15, 2010, for DSP Blackrock Tax Saver Fund is as follows:
Growth: 15.596,
Dividend: 11.613
Since inception DSP BR Tax Saver fund has offered 84.22% returns and 14.67% for the last one year which goes to prove that this is an effective fund with good fun manager in the backseat.
If you are looking for an alternative option to invest other than the regular tax saving options offered by post offices and banks and don’t mind taking risks in terms of your investment then this Tax Saver Fund can come in handy
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Comments
What are the prospects at this time? should invest in this? Please let me know. I am planning to purchase through SIP.
Thanks,
Sanjay
@Sanjay, from April 2012 onwards these tax saver mutual funds dont qualify for the tax saving instrument purpose and hence if you are opting for the SIP then opt only till the March 2012 as after this such tax saver fund will be just like a regular mutual fund.
Sadly, the Fund fell more than the Benchmark during 2008 and thus it is better to watch the Fund’s performance for another year or so.
Till then there are better alternatives like Religare Tax plan, Birla Sunlife tax relief 96 and HDFC Tax Saver.