NAV: Rs. 4,740 crore (As on 28/2/2019)

Exit Load: 0

P/E Ratio: 20.4

Expense Ratio: 1.93%

Turnover: 103%

The DSP Blackrock Tax Saver Fund is an open-ended, actively managed Equity Mutual Fund. The fund predominantly invests in large-cap company stock for its equity mix and in for its debt mix, it invests in high-quality debt. The fund is also an Equity Linked Saving Scheme (ELSS) under Section 80C of the Income Tax Act 1961. The DSP Blackrock Tax Saver Fund was launched on 1st January 2013 but the DSP Blackrock Mutual Fund House.

Suitable Investors

The DSP Blackrock Tax Saver Fund is suitable for investors seeking long-term capital appreciation through systematic investments in equity and equity related instruments. As this is an Equity Mutual Fund, it is exposed to market volatility, therefore, investors in this fund should have a high capacity for risk. The fund is an ELSS and carries a 3-year mandatory lock-in period, therefore, investors in this fund should be looking at investment cycles of at least 3 years.

Asset Allocation

The DSP Blackrock Tax Saver Fund is an Equity Mutual Fund and, therefore, allocates the majority of its assets towards equity and equity related instruments. The fund also makes nominal investments in debt and other money market instruments to provide the fund a level of stability during volatile market cycles as well as good liquidity. The asset allocation of the fund according to its mandate has been provided in the table below.

Asset Minimum Allocation Maximum Allocation Risk Profile
Equity and Equity Related Instruments 80% 100% High
Debt and other Money Market Instruments 0 20% Low to Medium

The current asset allocation of the fund has been provided in the chart below.

Portfolio

The DSP Blackrock Tax Saver Fund is a highly diversified Equity Mutual Fund that currently invests predominantly in large-cap company stock. The fund distributes its equity investment across 69 stocks in various sectors of the market. The top 10 stocks of this fund make up 41% of its assets. The fund heavily invests in the Finance, Construction, Energy, and Technology sectors. The present sectoral allocation of the fund against its benchmark has been provided in the chart below.

Performance

Since its launch in January 2007, the DSP Blackrock Tax Saver Fund has almost consistently outperformed its benchmark and category. The fund saw its best performance between March 2009 and March 2010. The fund provides good returns during bullish market cycles and mitigates losses well during bearish market cycles. The fund carries an Alpha of -0.54 which is higher than the category average Alpha of -1.13 and a Beta of 1.05 which is marginally higher than the category average Beta of 0.96, this demonstrates the fund’s ability to generate higher-than-expected returns while taking on slightly higher risk. The trailing returns of the fund against its benchmark and category has been provided in the chart below.

Investment Objective

The DSP Blackrock Tax Saver Fund seeks to provide its investors with long-term capital appreciation through systematic investments in equity and equity related instruments. The fund also carries the additional benefit of being an ELSS, this allows investors to reduce their taxable income by Rs. 1.5 lakhs through investments in this fund. There is no guarantee that the fund will achieve its objectives but will continuously strive to achieve them.

Investment Philosophy

The DSP Blackrock Tax Saver Fund invests in stocks of companies that demonstrate sustainable business practices, operations efficiencies, capital allocation efficiencies, and other managerial efficiencies. The fund follows a growth style of investment, focusing more on the potential of stock to perform in the future rather than its current market value. The fund employs a combination of bottom-top and top-bottom analysis while stock picking.

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