With just a few days left for the financial year to close and to make investments, it makes sense to be invested with a tax saving scheme. Among the tax saving schemes, DSP BlackRock Tax Saver has performed well in almost all cycles of markets.
A five-star rated tax saving scheme, it primarily chooses to have high allocation to large-sized companies. In times when there is lack of clarity on visibility of earnings, high allocation to large-sized companies is a profitable shift. For conservative investors, this strategy is favourable since large-sized companies have established business models, dominant market share, reasonably good cashflow from operations and attractive return ratios.
In the past three-year and five-year period, the scheme has given 24.2 per cent and 20.6 per cent returns, respectively, while its benchmark Nifty 500 has given 15.7 per cent and 13.4 per cent, respectively, in the same period. In the past six months, the scheme's fund manager Rohit Singhania has invested in carefully picked fundamentally strong companies across sectors which have not only demonstrated encouraging financial performance in the past but also have strong revenue visibility once demand in their respective segments improves in the coming quarters. Some of these companies are Amara Raja Batteries, Hindustan Unilever, Tata Consultancy Services, and ICICI Bank.
DSP BlackRock Mutual Fund becomes DSP Mutual Fund
