Birla Sun Life Tax Relief 96 Fund – If Tax Saving is a priority..

By Ashish Kyal -

Why choose ELSS is the question which comes in the mind of an individual for now as there is an obstacle of a 3 year Lock-in period. But they are unaware of the basic returns they actually fetch 150,000 INR under section (u/s) 80C without taking the fund performance into consideration. If the fund also meets the expectation of the investor then that is a cherry on the cake.

Tax saving Mutual Fund:

ELSS funds have the lowest Lock-in-Period amongst all the categories of Section 80C which is 3 years and investors qualify for tax benefits under section 80C of Income Tax Act, 1961. This is the reason we have included this Tax relief fund.     

Birla Sun Life Tax Relief 96 – Growth Weekly Chart

Birla Sun LiIfe Tax Relief 96 Fund

Birla Sun Life Tax Relief 96 is an open ended Equity Linked Saving Scheme (ELSS) with 97.26% exposure to equity.

Portfolio Analysis: The fund aims to generate returns by investing in complete equity with maximum exposure to Banking/Finance and Automotive sector. The fund has diversified its holdings into 50 stocks with 24.83% concentration into top 5 stock holdings which is shown below:

Birla Sun life Tax relief_tables

Risk Profile: This fund is considered as “High Risk Fund” due to complete exposure to equity instruments, therefore it’s suitable for investors who are looking for Tax benefits. 

Taxation Perspective: Birla Sun Life Tax Relief 96 is ELSS fund is where investor is eligible for tax exemptions up to 150,000 INR under section (u/s) 80C of the Indian Income Tax Act, 1961 if they stay invested for three years or more. ELSS Funds are also eligible for Long Term Capital Gains which will be treated tax free as the holding will be more than one year. The Dividend earned from ELSS funds is also treated as tax free.

Investment Rationale: Birla Sun Life Tax Relief 96 fund is going through its corrective phase as of now in wave 2 post the completion of this we shall witness most impulsive rise in the form of wave 3. We will get the confirmation of the start of this violent leg once the previous pivot high of 23 levels is taken out. 

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