My investment in DSP Tax Saver started as a tool for saving taxes. After government announced new income tax regime, I knew that the tax benefits of Section 80C would soon go away. I was about to pause my investments in DSP Tax Saver but looking at its performance I did not. And, at least as of now, I am glad that I did not.
Is this a regular or a direct plan? I started off with a regular plan but after three SIP instalments, I learned about direct plan and switched to it. Only 1% on my investment in DSP Tax Saver is in regular plan and while rest 99% is in direct plan. So it is safe to say this is a direct plan.
Did I beat the Nifty 50 Index? Yes, but by a small margin. While Nifty 50 Index would have given 16% XIR, DSP Tax Saver has given me 18%.
How does my return compare to other ELSS mutual funds? I decided to compare my returns to the top ELSS fund as per CRISIL’s Mutual Fund Ranking dated 31-Mar-2023 i.e. Quant Tax Plan. Compared to Quant Tax Plan my investment in DSP Tax Saver has underperformed, and that too by a huge margin. Quant Tax Plan’s XIRR comes at 30% compared to DSP Tax Saver’s 18%.
So, will I move to Quant Tax Plan? No.
Am I going to continue investing in DSP Tax Saver? Yes, at least for another year.
Investment through the years
Returns
Profit
XIRR
