BSL Tax Relief’96 Fund

Birla SunLife Tax relief 96 has had a successful run for over 2 decades now, helping investors create substantial wealth, specially for the ones who remained loyal with it through its journey. BSL Tax Relief’96 Fund is recommended by Prajna Capital in ELSS category of funds for the investors for the upcoming tax season.

The fund has a superior long term track record of over 20 years, wherein it has outperformed its benchmark (S&P BSE 200) by ~14% CAGR. Also it is one of the oldest tax saving scheme in the industry. Due to its consistency in building a quality portfolio, the fund has been able to generate higher risk-adjusted returns for its investors.

Some key highlights of the Birla Sun Life Tax relief 96 fund:

vBSL Tax relief 96 is an open ended tax saving scheme. The fund adopts a multi-cap strategy with 55-60% large cap exposure and rest in quality midcaps & small caps

v Fund follows a bottom-up approach to investing. Decision of stock selection involves in-depth research not made simply basis meeting the top level management. This is unique approach as our fund management team also meets the company’s bottom rung of the of management (staff, middle level managers, company vendors and all other stake holders) – 360 degree review

v Fund performs a ground level research on companies it adds to the portfolio – review of competition, market share, perception of company’s product, solutions provided by the company, 360 degree channel tech, what percent of revenues is the company spending on R&D etc.

v Fund focuses on stocks which witness gradual upturn in the economy

v Fund focuses on investing in companies which are debt free, has strong promoters with professional management, financially sound and managements which are empowered to take decisions

v Fund refrains from taking any cash calls even during market stress times. Over last 3 years fund had not more than 1% exposure to cash. The same was maintained to meet only redemptions needs. Thus fund takes the best advantage of staying invested in equities due to 3 year lock-in period

v Invests in compelling business no matter what size and sector

v Absolute return: Though fund focus remains to outperform its benchmark, through bottom up stock picking approach funds strives to deliver superlative absolute returns

Scheme/Benchmark Returns(%)
3Yr 5Yr 10Yr 20Yr
BSL Tax Relief’96 22.39 19.44 10.90 27.37
S&P BSE 200 8.01 12.73 8.01 13.40

Data as on 30th November, 2016. Source: MFI Explorer

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