Best Tax Saving/ ELSS Funds by Dividend Payout

In the recent few posts I wrote about the best ELSS funds to invest and then about how you can invest less and save more tax by opting for Dividend Payout option of Tax Saving Funds. In continuation with the same I have compiled the dividend payout history for last 5 financial years of some of the best ELSS available in the market. The first row has the name of the scheme along with its inception date.

Few Common Features:

  1. There is no fund with consistent record of dividend payout with an exception of HDFC Taxsaver which has paid dividend every Feb/March since 2005.
  2. Most of the funds did not payout any dividend in Financial Year 2008-09 as equity markets world over had crashed and all these funds were deep red. So you can never be sure of dividend payouts by a fund.
  3. The older the scheme is the better chances of it paying dividends. This is because it has accumulated profits from a longer time & so has a higher NAV. So fund manager has more flexibility while deciding on dividend payment. This also proves that one should prefer funds with a longer track record.
  4. It makes more sense to invest in Funds with higher NAV as they have flexibility to pay more dividends.
  5. Last but not the least you should never never decide to invest in a fund just because of its dividend payout.
Dividend history of HDFC Taxsaver – Dividend      March-1996
Financial Year Record Date Rate of Dividend Dividend /Unit NAV as of Dividend Date (Rs.) Dividend Yield Dividend payout on Rs 1 Lac invested (Rs.)
2008-09 06-Mar-09 50% 5 31.155 16% 16,049
2007-08 07-Mar-08 80% 8 68.03 12% 11,760
2006-07 08-Mar-07 75% 7.5 60.36 12% 12,425
2005-06 17-Mar-06 75% 7.5 67.08 11% 11,181
2004-05 17-Feb-05 50% 5 40.57 12% 12,324

HDFC Taxsaver fund is by far most consistent Dividend Payer in the last five years.

Dividend history of Canara Robeco Equity Taxsaver – Dividend March – 1993
Financial Year Record Date Rate of Dividend Dividend /Unit NAV as of Dividend Date (Rs.) Dividend Yield Dividend payout on Rs 1 Lac invested (Rs.)
2009-10 08-Jan-10 20% 2 22.22 9% 9,001
2007-08 28-Mar-08 30% 3 19.22 16% 15,609
2006-07 15-Mar-07 60% 6 20.54 29% 29,211
2005-06 16-Mar-06 40% 4 23.86 17% 16,764
2004-05 18-Mar-05 25% 2.5 16.74 15% 14,934
Dividend history of Franklin India Taxshield – Dividend Feb – 2001
Financial Year Record Date Rate of Dividend Dividend /Unit NAV as of Dividend Date (Rs.) Dividend Yield Dividend payout on Rs 1 Lac invested (Rs.)
2009-10 15-Jan-10 30% 3 33.05 9% 9,077
2007-08 17-Dec-08 30% 3 20.69 14% 14,500
2006-07 14-Nov-07 80% 8 46.89 17% 17,061
10-Jan-07 80% 8 39.43 20% 20,289
2005-06 15-Feb-06 35% 3.5 38.01 9% 9,208
2004-05 18-Mar-05 30% 3 27.25 11% 11,009
Dividend history of SBI Magnum Tax Gain Scheme 93 – Dividend March – 1993
Financial Year Record Date Rate of Dividend Dividend /Unit NAV as of Dividend Date (Rs.) Dividend Yield Dividend payout on Rs 1 Lac invested (Rs.)
2009-10 29-May-09 28% 2.8 36.69 8% 7,632
2007-08 15-Feb-08 110% 11 57.85 19% 19,015
2006-07 02-Mar-07 110% 11 54.09 20% 20,336
2005-06 10-Mar-06 150% 15 59.31 25% 25,291
10-Jun-05 102% 10.2 47.09 22% 21,661
Dividend history of Sundaram BNP Paribas Taxsaver – Dividend Nov-99
Financial Year Record Date Rate of Dividend Dividend /Unit NAV as of Dividend Date (Rs.) Dividend Yield Dividend payout on Rs 1 Lac invested (Rs.)
2009-10 18-Sep-09 10% 1 14.8066 7% 6,754
2007-08 28-Mar-08 15% 1.5 13.727 11% 10,927
28-Dec-07 30% 3 21.7769 14% 13,776
2006-07 23-Mar-07 20% 2 14.48 14% 13,812
08-Dec-06 25% 2.5 17.5945 14% 14,209
25-Aug-06 15% 1.5 15.97 9% 9,393
2005-06 03-Mar-06 30% 3 19.63 15% 15,283
30-Sep-05 30% 3 18.21 16% 16,474
Dividend history of Sahara Taxgain – Dividend Mar-97
Financial Year Record Date Rate of Dividend Dividend /Unit NAV as of Dividend Date (Rs.) Dividend Yield Dividend payout on Rs 1 Lac invested (Rs.)
2007-08 28-Mar-08 75% 7.5 22.12 34% 33,906
2005-06 24-Mar-06 25% 2.5 19.4 13% 12,887
2004-05 23-Mar-05 200% 20 63.2 32% 31,646
19-Jan-05 100% 10 70.61 14% 14,162
Dividend history of Taurus Taxshield – Dividend Mar-96
Financial Year Record Date Rate of Dividend Dividend /Unit NAV as of Dividend Date (Rs.) Dividend Yield Dividend payout on Rs 1 Lac invested (Rs.)
2009-10 11-Jan-10 15% 1.5 25.35 6% 5,917
30-Nov-09 10% 1 24.64 4% 4,058
2008-09 06-Mar-09 10% 1 13.16 8% 7,599
23-Jan-09 10% 1 14.46 7% 6,916
19-Dec-08 10% 1 16.68 6% 5,995
Dividend history of Fidelity Tax Advantage Fund – Dividend Jan-06
Financial Year Record Date Rate of Dividend Dividend /Unit NAV as of Dividend Date (Rs.) Dividend Yield Dividend payout on Rs 1 Lac invested (Rs.)
2007-08 13-Mar-08 15% 1.5 14.46 10%        10,373

Fidelity Tax Advantage Fund is a new fund so doesn’t have much flexibility in paying Dividends.

And now comes the Historical Blockbuster Dividend Payers

Dividend history of Birla Sun Life Tax Relief 96 – Dividend Mar-96
Financial Year Record Date Rate of Dividend Dividend /Unit NAV as of Dividend Date (Rs.) Dividend Yield Dividend payout on Rs 1 Lac invested (Rs.)
2009-10 31-Aug-09 40% 4 79.66 5% 5,021
2008-09 27-Jun-08 50% 5 74.61 7% 6,702
2007-08 25-Mar-08 200% 20 101.8 20% 19,646
2006-07 16-Mar-07 500% 50 134.27 37% 37,238
19-Jan-07 260% 26 176.54 15% 14,728
08-Dec-06 250% 25 193.94 13% 12,891
27-Apr-06 500% 50 224.51 22% 22,271

Infact if you had invested in Birla Sun Life Tax Relief 96 – Dividend in April 2006, you would have got almost 90% back as divided by the end of one year.

Dividend history of Principal Personal Taxsaver      Mar-96
Financial Year Record Date Rate of Dividend Dividend /Unit NAV as of Dividend Date (Rs.) Dividend Yield Dividend payout on Rs 1 Lac invested (Rs.)
2007-08 25-Mar-08 400% 40 124.66 32% 32,087
26-Feb-08 200% 20 172.57 12% 11,589
2006-07 31-Dec-07 110% 11 221.26 5% 4,972
30-Oct-07 110% 11 190.53 6% 5,773
2005-06 13-Mar-06 100% 10 118.96 8% 8,406
02-Nov-05 400% 40 124.43 32% 32,147

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