HDFC Taxsaver Fund: Not a consistent outperformer

ET Wealth collaborates with Value Research to analyse top mutual funds. We examine the key fundamentals of the fund, its portfolio and performance to help you make an informed investment decision.

HOW HAS THE FUND PERFORMED?
With a 10-year return of 13.97%, the fund has outperformed both the benchamrk index (12.45%) and the category average return (13.35%).


Growth of Rs 10,000 vis-a-vis category and benchmark

BASIC FACTS
Date of launch: 31 Mar 1996
Category: Equity
Type: ELSS
Average AUM: Rs 7,268.46 crore
Benchmark: Nifty 500 Total Return Index

WHAT IT COSTS
NAVs (As on 19 Sep 2018)
Growth option: Rs 519
Dividend option: Rs 60
Minimum investment: Rs 500
Minimum SIP amount: Rs 500
Expense ratio (%): 2.11
Exit load: None

FUND MANAGER
Vinay R. Kulkarni
Tenure: 11 Years and 9 Months
Education: Btech, PGDM

WHERE DOES THE FUND INVEST?

HOW RISKY IS IT?

Wherever not specified, Data as on 31 Aug 2018. Source: Value Research

Should You Buy?
This tax-saving fund has a decent long-term track record, but its performance has been inconsistent over the past few years. It takes a sharper large-cap tilt compared to peers in its category. While the portfolio is diversified, it is skewed towards the top-end with large positions in high-conviction bets and much smaller positions in the bulk of its portfolio.

The fund manager is also comfortable taking large active positions relative to the index. Currently, the fund has large overweight position in energy stocks. Its risk-reward profile is below average and exhibits higher volatility in returns. Other funds with consistent track record are better options till this fund shows outperformance on a sustained basis.