Religare Tax Plan is managed by Vetri Subramaniam and Vinay Paharia. The scheme aims to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities. This is a good fund to hold on to for the long term goals combined with tax savings.
Religare Tax Plan is a multi cap fund which means most of your money will be invested in stocks of large, medium and small sized companies. About 52.82% of the fund’s money is allocated to stocks of large-sized companies, 35.6% to stocks of mid sized companies and close to 11.58% to those of small companies. Mid-sized stocks can give kicker returns as they turn into large stocks but this happens not so frequently. Large cap stocks tend to be stable as compared to mid and small cap stocks.
- Saving on tax outgo
- Creating wealth
- Lifestyle needs
- Child's education
- Child's marriage
- Planning for retirement
- Home Purchase
If you had invested Rs 1 lakh when the fund was launched in Nov 2006, your value of investments would be around Rs 1.95 lakhs. If you had invested Rs 1 lakh for 5 years, your value of investments would be around Rs 1.5 lakhs. The performance has been better than the average of all mutual funds in this category. The fund has been giving around 8.44% returns to those who have stayed invested for 5 years.
Assume you had invested Rs 10,000 every month in Religare Tax Plan through SIP for the past 5 years today you would have around Rs 8.42 lakhs.
Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 9% then the leading companies tend to do well. When the companies do well their stock prices follows their performance. So if you expect the economy to grow at 8% then you can expect top performing mutual funds to give you returns in excess of 14%.
Mutual fund schemes that have exposure to mid-sized companies tend to show results when their bet on few companies comes true. We advise you to avoid too much of star gazing and future prediction. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.
Minimum one time investment is Rs 500 and minimum SIP is Rs 500 per month. Do not make Religare Tax Plan as part of your core portfolio. Core portfolio is investment that is made for your basic goals and makes up about 70% of your investment portfolio. Do not make the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio.
Now! There is no good time to invest rather than now. Do not try to time the market and especially if it is an SIP. Do not follow news channel and other experts to know the right time to invest. In the long run it does not matter. Mutual fund is unlike a stock where you are looking at the right price. This job will be done by the mutual fund scheme manager. If you have planned your investments and decided on the amount you want to invest do not think further, just go ahead.
There is a lock-in period of 3 years on this fund, which means that you cannot sell this fund within 3 years of your purchase date. Withdraw when your goals are closer to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.
Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.
A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.
No exit load applies for units withdrawn from this scheme. Expense ratio of Religare Tax Plan is 2.91%. 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 do not withdraw within 1 year. Religare Tax Plan 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.