The taxsaver schemes launched by the LIC Mutual Fund have beaten the Sensex by a wide range in an otherwise dull capital market scenario.
A recent study comparing the net asset values (NAV) of the mutual funds tax saver schemes with the movement of the Bombay Stock Exchange (BSE) Sensex for a 8-month period between April and November 1996 has revealed that the net asset values of the LIC schemes witnessed a steeper gradient compared to the rise in the Sensex. Correspondingly the slide in NAVs was flatter when the Sensex plummeted.
According to the study, Dhan Tax Saver 96- a close-ended equity-linked tax savings scheme, launched in December 1995, overtook the Sensex by 10.25 per cent in the eight-month period under consideration.
The funds mopped up through the equity-linked scheme was invested in April 96 when the Sensex stood at 3797.49 and the net asset value of the fund was Rs 9.43.
The Sensex plummeted to 2890.50 in November last yearregistering a drop of 23.88 per cent. The NAV for the scheme, according to the study, dropped to Rs 8.39, which on the contrary should have further plummeted to Rs 7.61 if the scheme had kept pace with the Sensex.
Another LIC mutual fund scheme, Dhan 80CCB (2)-launched in 1992- showed a flatter gradient compared to the fall in the Sensex. The funds mobilised from the scheme was opened up for investment in April 1992 when the Sensex ruled at 3887.92. During the 4-year period from April 1992 to November 1996 the Sensex dropped by 25.65 per cent. The study pointed out that the NAV of the scheme should have dropped to Rs 7.43 contrary to the decline to Rs 10.35. Thus the NAV had beaten the slide in Sensex by 39 per cent.
LICMF has launched a new tax-saving scheme Dhan Tax Saver 97 this year. The scheme offers twin benefit of tax-saving and growth.
The funds collected from the scheme will be invested in equities, cumulative convertible
preference shares, fully convertible debentures and bonds of companies.
