Reliance Tax Saver Plan
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Updated date : 04 September 2019
The Reliance Tax Saver is an open ended equity fund that is worth investing in on the part of all those looking to incur savings on tax payment at the end of any financial quarter.
This ELSS Fund was launched in as early as 2005 and caters to the interests of both business persons and salaried professionals.
There are many takers for the Reliance Tax Saver Plan largely due to the fact that investors can benefit from growth in equity in addition to being able to save on tax payments in the year end.
There are very few risks that are associated with these income tax saver plan and we always encourage our customers to sign up for this mutual funds scheme so as to reap great returns.
What is Reliance Tax Saver ELSS Fund?
Reliance Tax Saver ELSS Fund is an open-ended equity linked mutual fund scheme. This fund scheme comes with a lock-in period of 3 years and works as a great tax saving investment option. The main objective of Reliance Tax Saver ELSS fund is to create long-term capital gain by making an investment in equities and equity-related securities. In order to fulfill the investment requirement of the investors, the scheme comes with the flexibility to choose from various fund options to invest in. Let’s take a look at the types of funds offered by Reliance Tax Saver ELSS Fund.
1. Direct Plan-
The direct fund is an open-ended fund, which aims to create long-term capital growth by investing predominantly in equities and equity-related securities. This fund is more preferable by the investors as it has a lower expense ratio regardless of the higher Net Asset Value (NAV). Thus, due to the lower expense ratio, the fund provides a higher return on long-term investments.
2. Dividend Option-
In dividend option, the investor is eligible to receive the dividends on the amount they have invested in the Reliance Tax Saver ELSS Fund if the fund declares it. The dividend amount is set on basis of the number of units held by the investors and may feature either reinvest option or payout option. In case, of payout option, the accumulated dividend is transferred automatically to the bank account of the investor’s. On the other hand, in reinvesting option the accumulated dividend is converted to units of same value and added to pre-existing fund units.
3. Growth Option-
In this option of investment, no dividend is paid to the investor and they continue to stay invested in the fund. In case, the fund performs well then the amount gained is invested back in the scheme. This increases the net asset value (NAV) of the scheme. The increase in NAV results in capital appreciation, which can be redeemed by the investors whenever they want.
Important Points To know about the Reliance Tax Saver Plan
A Transparent and Safe Investment Scheme
The Reliance Tax Saver Plan has been in existence for a good number of years and is therefore characterised by a great deal of safety and transparency. There are no hidden costs as far as this ELSS Scheme is concerned and investors never have to worry about incurring huge losses when signing up for such a scheme online.
Minimal Risks for Investors to Face
The Reliance Tax Saver Plan like all other open ended equities is prone to risks associated with market volatility. However, these risks are quite minimal and the long term growth in capital that can be experienced through such an investment makes the risks otherwise typical of such an investment, worth taking.
No Complicated Formalities to Undertake
The formalities that need to be fulfilled in order to start investing in this ELSS Fund are not complicated and the application process is carried out online. We do our best to make sure that the Reliance Tax Saver Plan applicants get their formalities carried out in a smooth and hassle free manner so as to be able to start reaping the terrific returns from their investment in this fund as quickly as possible.
Allows Investors to Save Money on Capital Gains Tax Payments
- One of the main factors to have contributed to the popularity of the Reliance Tax Saver plan among people of almost every age group and economic background is the fact that this tax saver plan makes it possible to incur savings on capital gains tax.
- The capital gains tax amounts to quite a bit of money and must be paid by those who profit from the sale of commercial or residential establishments.
- By investing in the Reliance Tax Saver plan one is completely exempted from paying at least 50% of the money that would otherwise have been spent as capital gains tax.
No Maximum Investment Limit to Abide By
There are no maximum limits that investors need to be mindful of when opting to invest in a mutual funds scheme like the Reliance Tax Saver Plan. Investors can spend as much as they would want to on this fund in order to be able to reap the maximum possible returns from it.
The minimum amount of money that a person is required to invest in the Reliance Tax Saver plan is around 500 INR. This will be debited from the bank account of the investor via electronic clearing system or ECS.
SIPs for a Smooth and Efficient Investment
- Those looking to benefit from ELSS Funds like the Reliance Tax Saver Plan can opt for an SIP or Systematic Investment Plan in order to give their investment some structure. I
- t is possible to make disciplined investments with the help of SIP.
- This is a scheme that makes it possible for investors to pay 500 INR or 1000 INR per month, week or in every financial quarter towards the Reliance Tax Saver Plan.
- By selecting this investment plan, investors shall be able to make timely payments.
- SIP’s can be started as well as stopped at any point of time.
- If an investor finds it difficult to continue with his investment in the Reliance Tax Saver Plan then he can stop his SIP immediately. There will be no penalties imposed on him for this.
Investment Benefits People of Every Age
The Reliance Tax Saver Plan is an open ended equity that benefits investors of all ages. Even senior citizens who invest in this ELSS Fund are likely to be exempted from taxation.
A Liquid Investment for One and All
The Reliance Tax Saver Plan is an ELSS Fund that is characterised by a liquid investment procedure. Buying and selling can be carried out by investors on a daily basis. Investors can expect to start getting their money within a period of ten days or so.
Quick Payouts or Dividends
- The payouts for the Reliance Tax Saver Plan are carried out in the form of dividends.
- Investors can expect to receive dividends from their investment in this scheme in every financial quarter.
- The dividends are debited to the bank accounts of the investors via ECS. These may also be given to investors vide electronic cheques.
Reliance Tax Saver Plan - Returns
Easy Sign up Procedures to Follow
The process of signing up for the Reliance Tax Saver Plan scheme can be carried out easily on the internet. Applications get processed almost instantly and those who are accepted to be investors in the Reliance Tax Saver Plan are provided with log in details using which they can access their ELSS Fund account at any time of the day.
Applicants are expected to be transparent about their financial history at the time of signing up for this mutual funds scheme. If errors are detected in this regard then the concerned application may just very well be terminated.
Lock in Period of 3 Years
There is a three year lock in period that investors can benefit from when they sign up for Reliance Tax Saver Plan. This is not an investment that is likely to run into several years and the returns from such an investment are quick and substantive in value.
Well Known Reasons to Use a Mutual Funds Calculator when investing in Reliance Tax Saver Plan
The Reliance Tax Saver Plan is one that comes with its very own funds calculator that may be used by prospective investors to determine exactly how much they will be likely to make when investing their money in such a scheme. There are several reasons why this calculator should always be used prior to signing up for being an investor in this ELSS Fund.
ELSS Fund Calculator is Free to Access
The mutual funds calculator for the Reliance Tax Saver Plan is easy to use and is also a tool that can be accessed for free. Interested persons may use this tool at any time of the day, be it morning or night to check how much they can possibly make by investing in the Reliance Tax Saver Plan.
ELSS Fund Calculator compatible with Several Devices
Apart from being easy to use the Reliance Mutual Funds Calculator is also one that is compatible with a wide range of mobile devices. This calculator can be used in a convenient manner in both IOS and android phones.
ELSS Fund Calculator should be accessed using High Speed Internet
It is necessary for people to use high speed internet when accessing the mutual fund calculator online for Reliance Tax Saver Plan. Otherwise the process of generating likely returns for a specific investment amount will slow down to a considerable extent.
Excellent Accuracy of Results Generated
The results that are generated by the mutual fund calculator are a hundred percent accurate. Those who use such a mutual fund calculator can be rest assured that the figures generated by this calculator are almost likely to be the same as the returns that they will make when investing a specific amount of money in the Reliance Tax Saver Plan.
Precautions to take when making Investments in Reliance Tax Saver Plan
- One of the most important precautions that should be taken when investing in the Reliance Tax Saver Plan is to provide accurate PAN details. This is required for reasons of security.
- The SIP payments should be carried out in a timely fashion and investors should avoid defaulting on these as much as possible. Defaulting can affect the returns an investor could otherwise expect through consistent SIP payments.
Thus the Reliance Tax Saver Plan is quite a sound ELSS Fund scheme that is worth investing in on the part of those looking to make huge profit from equity while saving on the payment of tax as well.
How to invest in Reliance Tax Saver ELSS Fund?
One of the important requirements for investing in Reliance Tax Saver ELSS fund is KYC submission. Submission of KYC details is mandatory for investment in ELSS fund. The investor will have to provide important details like address proof and identity proof. The individual will also have to complete the process of in-person verification. One can make the investment in Reliance Tax Saver ELSS Fund either directly or can take help of the mutual fund advisor/distributor in order to do so. One can obtain the investor application form from distributor or AMC or can download the form from the website of Reliance Mutual Fund.
One can invest a minimum amount of Rs.500 in Reliance Tax Saver ELSS fund. However, there is no maximum limit on investment. Moreover, the investor is eligible for availing tax benefits up to maximum limit of Rs.1.5 lakhs. The investor can choose to make the investment as the lump-sum amount or can choose to invest through a systematic investment plan, where a fixed amount will be deducted per month from the investor’s account for a specific period of time.
Frequently Asked Questions Reliance Tax Saver ELSS Fund:
1. Is it wise to invest in Reliance Tax Saver ELSS Fund?
Ans- Yes, Reliance Tax Saver ELSS fund is a lucrative option of investment, if an individual wants to invest in equity-linked savings scheme. The scheme has performed extremely well over the last few years and has a rate a return of 16.42% over this period. With the highest SIP returns on basis of 10 years, Reliance Tax Saver ELSS scheme is one of the best schemes to invest in.
2. Can I invest in Reliance Tax Saver Fund?
Ans- Yes, you can invest in Reliance Tax Saver ELSS fund if you have a time horizon of 5-10 years and want to create long-term capital gain. As one of the top performing funds, the scheme majorly focuses on mid-cap funds. But over the past few years, the fund has changed its focus towards large cap funds.
Currently, Reliance Tax Saver ELSS fund invests 59.8% of its capital in large-cap fund whereas the rest 29.5% fund is invested in the mid-cap fund. However, it maintains a balance between mid-cap and large-cap funds.
3. Is this a wise decision to invest in SIP for amount Rs. 5000/- (per month) in Reliance Tax Saver Growth fund for long-term?
Ans- From the past few years, Reliance Tax Saver is known for performing tremendously well in the market. As one of the best tax saving investment options, you can consider investing in this fund if you have a high-risk appetite and want to gain higher returns with lesser volatility. Reliance tax saver is a good option of investment for a long-term period as it focuses mainly on mid-cap funds and large-cap funds equally. If you want to accumulate wealth in a long-term, then it is also advisable to start investing in SIP immediately instead of investing a lump-sum.
4. Which ELSS will be good for the long-term- Axis Long Term, Reliance Tax Saver, or the Tata India Tax Savings?
Ans-If we talk about ELSS funds for long-term investment then TATA Tax Saving Mutual Fund has been consistently performing well in the market but the margin is not very huge. Moreover, the scheme size of TATA Tax Saving fund is smaller than the other two funds. However, Reliance Tax Saver beats TATA Tax Saving by a minimum margin in terms of volatility but in terms of return and growth, it is suggested to invest in TATA Tax Saving mutual fund.
5. Which is a better tax saver mutual fund, HDFC Tax saver or Reliance Tax Saver?
Ans- Reliance Tax Saver Mutual Fund is better than HDFC Tax Saver. As the performance of Reliance tax saver has been consistently good in the past three years. In terms of risk and volatility also Reliance Tax Saver fund has outperformed the HDFC tax saver fund.
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