Union KBC Tax Saver Fund is managed by Ashish Ranawade. The scheme seeks to achieve long-term capital appreciation by investing substantially in a portfolio consisting of equity and equity related securities. If you are a new investor you can skip this one for a better performing large cap fund.
Union KBC Tax Saver Fund is a large-cap fund which means most of your money will be invested in stocks of large sized companies. About 76.39% of the fund’s money is allocated to stocks of large sized companies, 16.97% to stocks of mid-sized companies and 6.65% 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 companies tend to be stable compared to mid-cap and small cap companies.
- Saving on tax outgo
- Child's education
- Child's marriage
- Planning for retirement
- Home purchase
- Creating wealth
- Lifestyle needs
If you had invested Rs 1 lakh when the fund was launched in Dec 2011, your value of investments would be around Rs 1.33 lakhs. The performance has not been better or similar to other large cap mutual funds. The fund has been giving around 21.17% returns to those who have stayed invested since inception.
Assume you had invested Rs 10,000 every month in Union KBC Tax Saver Fund through SIP since inception today you would have around Rs 1.9 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 follow 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.
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.
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 Union KBC Tax Saver Fund is 2.93%. 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. Union KBC 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.