DSP Tax Saver Fund

DSP Tax Saver Fund is an Equity Linked Savings Scheme (ELSS) that was launched on January 18th, 2007. The fund invests in established and emerging companies of various market capitalisations to provide a balance of growth and stability.

The fund is managed by Rohit Singhania and Kaushal Maroo and aims to generate medium to long-term capital appreciation through a diversified portfolio consisting mostly of equity and equity-related securities of corporations. Additionally, the fund’s goal is to allow investors to take advantage of the tax deduction benefits provided by the Income Tax Act 1961.

Pros & Cons

How to Invest in DSP Tax Saver Fund

To invest in the DSP Tax Saver Fund with 5paisa, you can follow these steps:

● Log in to your 5paisa account.
● Go to the Mutual Funds section.
● Search for DSP Tax Saver Fund in the search box.
● If you want to start a Systematic Investment Plan (SIP), click on “Start SIP.”
● If you want to make a one-time lump-sum investment, click on “One-time” and then “Invest Now.”

What is the Expense Ratio of DSP Tax Saver Fund

As of 31 January 2023, the expense ratio of the DSP Tax Saver Fund is 0.8%. This percentage represents the cost of running the fund per unit and is calculated as a proportion of the fund’s assets. The expense ratio is charged by the Asset Management Company (AMC) for managing the investor’s holdings in the mutual fund.

Who Should Invest in DSP Tax Saver Fund

DSP Tax Saver Fund is suitable for investors who:

● Wish to avail tax benefits under Sec 80C of Income Tax Act 1961 by investing up to Rs.1.5 lakh annually.
● Are willing to invest in equity markets for a long-term horizon of at least 10 years.
● Recognise market falls as good opportunities to invest even more.
● Accept the inherent risk of equity investments and are willing to bear short-term volatility.
● Are not looking for the highest possible returns at all times but aim for a balance of growth and stability.

What are the Benefits of Investing in DSP Tax Saver Fund

Here are some benefits of investing in DSP Tax Saver Fund:

1. Tax Savings
DSP Tax Saver Fund is an Equity Linked Savings Scheme (ELSS), which allows you to avail a tax deduction on up to Rs 1.5 lakh annually under Sec 80C of the Income Tax Act 1961.

2. Good Returns
The fund has consistently outperformed its category average in terms of annualised returns over the past 1, 3, 5, and 10 years.

3. Diversification
The fund invests in established as well as emerging companies across market caps, providing a combination of growth and stability.

4. Long-Term Investment
DSP Tax Saver Fund has a lock-in period of 3 years, making it ideal for those who are looking for a long-term investment option.