|Category:||Equity: Tax Planning|
|Assets:||R 997 crore (As on Mar 31, 2014)|
|Expense:||2.47% (As on Sep 30, 2013)|
The scheme seeks medium to long term growth of capital, with income tax rebate. The scheme invests in equities and there is an exposure to PSU Bonds and debentures and Money Market instruments.
Anand Radhakrishnan since Apr 2007
Anil Prabhudas since Feb 2011
The fund's strategy can be summed up succinctly by stating that this is a large-cap oriented fund with a bottom-up investment strategy. Thus, there's no particular affinity for either the growth or the value style of investing. It always stays fully-invested-in fact, the cash allocation has not risen above 10 per cent for more than a decade now. Its top five sectors account for around 64 per cent of the portfolio which is marginally lower than the category average of 69 per cent. Energy, Engineering and Financials have been part of the top five dominant sectors of the fund for the past five years. Says fund manager Anand Radhakrishnan, “Though our investment style has an inherent growth bias, we are not limited by external style classifications. A fair comment on our investment style would be to describe it as bottom-up, research based, and dynamic 'blend' of growth and value.”
Tax Shield's long term returns are attractive, with a trailing three-year return of 11.28 per cent and five year return of 7.96 per cent, which is higher than the category average. The most distinctive feature of the fund's performance history is its ability to do better than its peers when markets crash. It fell only 15.19 per cent as compared to the category average of 23.82 per cent in 2011 but in the next year it slightly lagged behind its peers in terms of performance when it generated returns of 29.38 per cent as compared to the category average of 31.25 per cent and clocked a one per cent higher return than the category average during the last year.
The fund provides safety with reasonable returns-which is exactly what most investors in tax-saving funds need.