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Sunday, January 10, 2010

Buy HDFC Tax Saver in ELSS Category

Its a season of investments in tax saving instruments for salaried class people. Either its national saving schemes like NSC/ KVP, tax saving via PPF or equity instruments like ULIP (unit linked insurance plan) / mutual fund ELSS, most of the investments to save taxes is usually done in the month of january and february by salaried class people. Looking at various schemes available in mutual fund ELSS category to save taxes, below is one of the scheme in ELSS category which has delivered good returns on investments. With consistent performance in past one can consider below scheme for investment in mutual fund ELSS category.

HDFC Tax Saver is a consistent performer since inception. Fund is managed well and outperformed the benchmark index - S & P CNX 500. The annualized returns of the fund since inception is almost double as compared to benchmark returns in terms of SIP investments. Two options for investments in HDFC Tax Saver fund is available - Dividend & Growth.

The asset allocation consists of 2 asset type -
i) Equity and equity related instruments with minimum of 80 % weightage.
ii) Debt securities, money market instruments (including cash/call money) with maximum of 20 %.

Team of 2 fund managers is looking after HDFC tax saver scheme, Mr. vinay kulkarni is managing the fund since last 4 years along with Mr. Anand Laddha.

Overall holdings of scheme as on 30th nov is listed below. Looking at top 10 stocks holding, scheme exposure in banking sector holds maximum with NAV weightage of 14.73 % followed by pharmaceuticals, IT and construction.

HDFC Tax Saver is enjoying either 4 star or 5 star value research rating from last 5 years.

Scheme last one year absolute returns is 104.6%. HDFC Tax Saver scheme ranking in ELSS category is 7th for last one year, 2nd for last 2 years and 4th for last 5 years.

We believe in future also HDFC Tax Saver will outperform its benchmark index and yield maximum returns. Looking at long term prospective, we recommend buy for HDFC Tax Saver in ELSS category.