L&T Tax Saver Fund is being managed by Anant Deep Katare. This fund’s performance has been below the category average in most periods. Investing in this fund enables the investors to avail the income tax rebate, as permitted from time to time. If you have completed three years lock-in period you can consider exiting the fund now.
L&T Tax Saver Fund is a large cap fund which means most of your money is invested in giant and large size companies. It has about 81% allocation in large cap stocks 13% allocation to mid cap stocks and 3% allocation to small cap companies. Large cap companies tend to be stable compared to mid cap and small cap companies. Yet exposure to mid cap companies is not totally avoided due to prospects of kicker returns which unfortunately does not happen often.
- 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 1.47 lakhs. If you had invested Rs 1 lakh five years back it would have sadly become Rs 99795. The performance has been worse than that of other mutual funds in this category. The fund has been giving around -0.4% returns to those who have stayed invested for 5 years.
Assume you had invested Rs 10,000 every month in L&T Tax Saver Fund through SIP for the last 5 years today you would have around Rs 6.96 lakhs.
No exit load applies for units withdrawn from this scheme but there is lock-in of 1095 days. Expense ratio of L&T Tax Saver Fund is 2.80%. 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.
L&T Tax Advantage Fund- Series I 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.