Reasons Why You Should Not yet Give up on Reliance Tax Saver Fund

Reliance Tax Saver Fund has been losing its ratings in recent years and the majority of the investors are concerned regarding the continuation of SIPs. A severe underperformance has been witnessed in the last 2-3 years for tax saving scheme of Reliance Mutual Fund. Although, redemption at the current level is not a clever choice and informed investors can handle the situation in a better way. Experts at MySIPonline have analysed the situation along with all the possible choices for the investors.

About the Scheme

Reliance Tax Saver Fund is an aggressive scheme in the ELSS category which aims to deliver higher capital appreciation to the investors in the long term. The fund allows tax deductions under section 80C and the investors can reduce the tax liability by up to Rs 46,800 every financial year by investing in Reliance Tax Saver Fund Growth. The fund manager Mr Ashwani Kumar uses aggressive investment strategy by allocating a higher proportion of the corpus in the mid and small-cap stocks. Among the ELSS category, it has the highest allocation in the mid and small-cap segment. In the last few years, the investment strategy hasn’t been much productive for the scheme and many investors have been moving out of the scheme following the downgrade in the ratings. Investors must consider the following factors before making any decision regarding investments.

1. Market Has Been UnfriendlyIn recent years, the mid and small-cap stocks have been unable to perform well and deliver the desired outputs. The market conditions have not been favouring the mid and small cap industries. This effect can be directly seen on the performance of Reliance Tax Saver Fund in which more than 40% of the corpus is invested in mid and small cap stocks. 
2. It has a Long Term OutlookReliance Tax Saver Fund aims for greater capital appreciation in the long tenure of more than 7 years and investments must be done for the long term. The short term volatility should not be considered while making investments in the fund. It has an aggressive portfolio and can be volatile in the short term. 
3. It has the Highest Return Generating AbilitiesDue to higher allocation in the mid and small-cap stocks, the fund has the ability to deliver the highest gains in the category if the market conditions are friendly for the small and mid-cap stocks.
4. Lower Expense RatioReliance Tax Saver Fund charges a lesser expense ratio than most of the schemes in the ELSS Category. 
5. Superior Track RecordReliance Tax Saver Fund has beaten peers as well as benchmark in the long term and has been chosen by a large number of investors. It has a gigantic AUM and has performed well under favourable market conditions. 

Advice for the Investors

Reliance Tax Saver Fund is suffering from prolonged negative market conditions and redemption at current levels must be avoided. Those investors who cannot take a higher risk can stop their SIPs and wait for the lock-in period to complete while for the adventurous investors, it can be an ideal tax saving scheme.

Reliance Tax Saver Fund is currently not performing well but has the ability to generate the highest returns in the category. To know more about the scheme or to clear any query regarding investments in mutual funds, connect with the financial experts at MySIPonline. 

HDFC SIP Calculator: A must Use Tool Before Investing in HDFC MF

Mutual funds have the ability to deliver the best capital gains in the long term compare to any other investment avenue. But it is a perplexing task to calculate the capital gains on the invested amount as the returns are not fixed and cannot be calculated using an ordinary calculator. To ease out the calculations involved in SIP and lump sum investments particularly for the schemes of HDFC Mutual Fund, the experts at MySIPonline have developed a user-friendly tool named HDFC SIP Calculator which can be a blessing for the potential investors as well as those who are already invested in HDFC Mutual Fund. Read to know how to use the HDFC SIP return calculator along with the advantages of this convenient tool.

How to Use HDFC SIP Calculator?
The calculator is easy to use and can be operated by any layman having little or no knowledge of finance and mutual funds. Follow these simple steps to simply the investments.

Step 1: Select the Scheme
The HDFC SIP Calculator has a list of all the schemes provided by HDFC Mutual Fund and the historical data of each scheme has been recorded. The investor needs to select the scheme in which he/she is planning to invest or already invested.

Step 2: Enter the Amount 
The next step is to enter the amount that you had invested in the selected scheme. For the SIP investment one needs to enter the monthly amount while for the lump sum calculation, the one-time amount needs to be entered.

Step 3: Select Start and End Date
The start date is the date from which the first investment was done in the selected scheme. For HDFC SIP calculator, the calculations will be done according to the NAV of that same day for every month whereas, for HDFC lumpsum calculator, the calculations will be done on the basis of change in the NAV between the start date and end date.

After entering the above-mentioned details, you can simply click on the calculate button to get the idea of the invested amount, investment value at on date, and the overall capital appreciation along with the percentage gains.

Benefits of Using the HDFC SIP Calculator

• By using the calculator, one can ease out the investment planning for the SIP as well as lump sum investment. 
• This user-friendly tool can give a clearer perspective of the returns that can be gained in the future on account of the performance of the scheme in the past. 
• If an investor is dicey regarding investment in any of the schemes of HDFC Mutual Fund, this calculator can help them select the better scheme to achieve their financial objective. 
• Those who have already invested in the schemes of HDFC MF in the past can also use this calculator to check the details of their wealth gain. 
• HDFC SIP Calculator gives precise details of the investments without any error margin. 
• It can save a lot of time and effort for the layman investor. 

Investors must note that the HDFC SIP Calculator works on the basis of recorded data of the historic performance by schemes of HDFC Mutual Fund. It is not necessary that similar returns will be delivered in the future. For any queries or any assistance regarding investments in mutual funds, you can reach out to our experts anytime free of cost.

What Benefits Do I Get by Investing in Reliance Pharma Fund?

The pharma industry in India is at an all-time rise. The continuously depleting living standards have forced the major pharmaceutical companies to evolve new and improved medical facilities, including pills and other vaccination for emerging diseases. This has led to a demand of more funds from the market, as new research come at a price tag of billions of dollars.

Considering the present scenario, it may be the right time to invest in the pharma industry. Reliance Pharma Fund is one of the most convenient way to build connections with the pharma industry. It is a sector-driven fund that primarily invests in the top pharma companies, thus leveraging on this growing sector of the economy.

The Basic Investment Details
Starting a fresh investment in Reliance Pharma Fund (G) is quite easy, provided you are doing it through MySIPonline. This online portal provides a convenient and hassle-free platform to make best investments in mutual funds at no extra cost. Also, there are online tools such as the SIP Calculator and the Tax Planning Calculator that further improves your financial planning by making it more realistic.

You can start an investment in Reliance Pharma Fund – Regular Plan (G) through an SIP investment plan at just ₹500 a month. This amount can be even raised later depending upon your spending capacity. And, if anything goes wrong, you’d have the liberty to stop your investments immediately.

The NAV of Reliance Pharma Fund (Growth) as recorded on 29th May 2019 was ₹144.75. This is a decent price for a fund of this stature, and considering the market factors is expected to rise in the near future. Hence, it is advised that you may book an investment in this fund as soon as possible for taking the advantage of this low price.

The Fund Expenditure and Management
The fund management is a crucial task. It is important for an AMC to ensure that qualified and experienced personnel are in charge of the funds, and are capable of looking after it under any and all circumstances. There are a couple of parameters to judge the fund management, such as expense ratio and the portfolio construction. Let us see how these two factors are held up in Reliance Pharma Fund (G): -

• Expense Ratio
This ratio denotes the average expenditure incurred on the management of the fund. Normally, it would stay within the range of 2-2.5%, and in very rare case would it soar up to 3% and beyond. At Reliance Pharma Fund, this value stays at 2.21%, which is a commendable measure for any sector-oriented fund.

• Portfolio Construction
The portfolio construction is yet another attraction of Reliance Pharma Fund. Since a sector-oriented fund dwells more volatility than other funds, the fund managers have designed a unique investment policy to retain average risk levels. There is a good number of different stocks present in the portfolio, which includes giant & large cap stocks (65.47%), midcap stocks (25.98%), and small cap stocks (8.55%). The large caps provide stability, while the small and midcap stocks are there to energise the wealth creation process. These different stocks work in tandem, thus creating a powerhouse of wealth creation and stability.

The Past Performance

The first thing that probably many investors notice is the past performance of a fund. Reliance Pharma Fund (Growth) has given some really interesting outputs in the last few years. With an average yield of 19.52%, this fund stands at no. 1 spot in the category of sector-oriented mutual funds

Reliance Pharma Fund is an excellent option to capture the advantage of the growing pharma industry. Buy an SIP plan for this fund at MySIPonline and start building your future.