Kotak Tax-Saver Fund is managed by Krishna Sanghvi and Pankaj Tibrewal. The fund’s performance has been miserable. If you have completed the lock-in period of three years you can consider exiting this fund and switch to a better performing fund.
Kotak Tax-Saver Fund is a large and mid cap fund which means most of your money will be invested in stocks of medium and large size companies. Large cap companies tend to be stable compared to mid cap and small cap companies. Fund has 61.95% exposure to large size companies and 19% exposure to mid size companies and 20% to those of small companies. Mid size stocks can give kicker returns as they turn into large stocks but this happens not so frequently.
- Saving on tax outgo
- Child's education
- Child's marriage
- Planning for retirement
- Home Purchase
- Creating wealth
- Short term needs
- Lifestyle needs
If you had invested Rs 1 lakh when the fund was launched in Nov 2005, your value of investments would be around Rs 1.89 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.06 lakhs. The performance has been not better or similar to other funds in this category. The fund has been giving 1.2% returns for those who have stayed invested for the past 5 years.
Assume you had invested Rs 10,000 every month in Kotak Tax Saver Fund through SIP for the past 5 years today you would have around Rs 5.32 lakhs.
No exit load applies for units withdrawn in this scheme but has a lock in of 1095 days. Expense ratio of Kotak Tax-Saver Fund is 2.78%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.
The returns in a mutual fund are absolutely tax free, provided you did not withdraw within 1 year. Kotak Tax-Saver Fund qualifies for sec 80C ELSS benefits, which means you can invest up to Rs 1 lakh a year in this fund and deduct the amount from your gross total income for computing income tax.