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Is the returns of HDFC Tax Saver correct

I have been using your Advisorkhoj website. It has been made in a very simple & ease to understand/use. I congratulate you for this. For the sake of improvement only being you are working very hard, I wish to draw your attention on the above captioned scheme. I tried it on SIP calculator, it showed wonderful returns. However, I am not able to digest such a great return since inception of this fund, I checked the NAV from other sites also of this fund. It was found that NAV is correct since inception but number of units purchased at that NAV from April 1998 onwards, at some places there is discrepancy. Please check & let us know as to what is the correct position?

Aug 23, 2016 by Jinender Jain, Delhi  |   Mutual Fund

Thanks for the kind words about Advisorkhoj.

Please note that the calculation for HDFC Tax Saver Funds look perfect on our website. The SIP returns of the fund since inception, according to our website is 26.78%. Please check the link here and it is correct.

The since inception lump sum returns according to our website is 27.22% and according to Valueresearchonline.com is 27.23% https://www.valueresearchonline.com... Therefore, there is hardly any difference if you want to benchmark the fund returns of our website with that of our peers.

However, the point to be noted here is that in nineties and early 2000, many funds with growth option used to declare dividends. HDFC Tax Saver was one of them. The growth option of this fund declared 4 dividends as per following details –

Oct 05, 1998 – Rs. 2.00 / unit

Aug 06, 1999 – Rs. 3.60 / unit

Nov 29, 1999 – Rs. 5.00 / unit

Apr 03, 2000 – Rs. 21.00 / unit

Please note, in cases like this, different websites calculate SIP returns/ lumpsum returns in different way. We can tell you how we do it - For example let us take the example of SIP returns of growth schemes. We will assume the dividend declared to be reinvested instead of payout as the option is growth. Therefore, we will allocate additional units whenever dividends are declared in growth units and consider the NAV post declaration of dividends (which goes down to the extent of dividend declared). If you check the cash flow of HDFC TAX SAVER SIP fund since inception on our website, you will easily understand. While checking the same, please keep in mind the dates and per unit/ amount declared as dividend.

That’s is the reason you will find discrepancy in the NAV… Some website will adjust the dividends in NAV and treat the dividends declared as payout and some will adjust the NAV presuming dividends as reinvested while not allocating any additional units and adjusting the dividend amount in NAV. And there are others (like Advisorkhoj) who will consider dividends declared as reinvested and allocate additional units and take the NAV post adjustments of dividends.

We at Advisorkhoj, take feedbacks very seriously and really appreciate you for this.

Let us remain in touch and explore how best we can show case returns on advisorkhoj.

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