an elss scheme is like any other diversified equity fund with an exception of tax-benefit under...

An ELSS scheme is like any other diversified equity fund with an exception of tax-benefit under Section 80C of the Income Tax Act. The funds invested have a lock in period of three years. Investments into the equity-linked savings schemes offer dual benefit to an investor.

First, the investments are made for a longer period; therefore, the Fund Manager has an opportunity of taking a long term view on the investments. There is stability in terms of entry and exit of funds, owing to its tax saving feature. Therefore, these schemes help in the growth of investor’s wealth over the years. The Fund Manager while managing an ELSS portfolio faces lesser risk of reducing corpus due to uneventful redemptions which gives him opportunity to invest into companies where he believes there is potential for value to be unlocked in the medium to longer term. The Inventors may wish to invest more than the tax saving limit of Rs 1 lakh under section 80C anticipating better returns compared to other schemes of similar asset allocation.

Second, the investor gets the benefit of tax exemption for the amount invested into the ELSS schemes since investments up to Rs 1, 00,000 are eligible for deduction from the gross total income under the Income tax Act, Section 80 C.

For example, an individual who has earned an income of Rs 5 Lakhs invests Rs 1 Lakh in an ELSS fund, such as Birla Sun life Tax Relief 96. The taxable income in this case would come down by Rs 1 Lakh (5-1) which means that for a taxable income of Rs 1 Lakh, there is zero tax. If the individual does not invest in to the ELSS Fund, his taxable income in this case would be Rs 5 Lakhs and as per the tax slab for men as an instance would be Rs 3,40000 ie., Rs (5 Lakhs – 1,60000). Therefore tax payable would be upto (Rs 3, 00000@10%) + (Rs 40000@20%) which would amount to Rs 38000. For a taxable income of Rs 4 lakhs, there is a tax of Rs 24,000/-.Therefore, in this scenario, you save Rs 14,000/- in taxes by investing in an ELSS scheme.

ICICI Prudential Taxplan – GrowthThe scheme seeks to generate long term capital appreciation from a portfolio that is

Invested predominantly in equity and equity related securities

Type of Scheme Open Ended

Nature Equity

Option Growth

Inception Date Aug 19, 1999

Face Value (Rs/Unit) 10

Fund Size in Rs. Cr. 1179.34 as on Jun 30, 2010

SIP YES

STP NO

SWP NO

Expense ratio(%) 2.01

Portfolio Turnover Ratio(%) 200

Increase/Decrease in Fund Size since May 31, 2010 (Rs. in crores) 19.87

Minimum Investment (Rs) 500

Purchase Redemptions Daily

NAV Calculation Daily

Entry Load Amount greater than 0 then and Amount greater than 0 then Entry Load is 0%.

Exit Load Exit Load is 0%.

L&T Tax Advantage Fund - Series I – Growth

The investment objective of the Scheme is to seek to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related

securities and also enabling investors to get income tax rebate as per the prevailing Tax Laws and subject to applicable conditions.

Type of Scheme Close Ended

Nature Equity

Option Growth

Inception Date Mar 27, 2009



SIP NO

STP NO

SWP NO







Entry Load Amount greater than 0 then Entry Load is 0%.


Reliance Equity Linked Saving Fund - Series I – Growth

The primary objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related

instruments along with income tax benefit.

Type of Scheme Close Ended

Nature Equity

Option Growth

Inception Date Mar 31, 2008



SIP NO

STP NO

SWP NO




Last Divdend Declared NA




Entry Load Entry Load is 0%.

Exit Load Exit Load is 0%

HDFC Taxsaver – GrowthThe fund plans to provide tax benefits along with capital

appreciation

Type of Scheme Open Ended

Nature Equity

Option Growth

Inception Date Jun 13, 1996



SIP YES

STP NO

SWP NO


Portfolio Turnover Ratio(%) 26.18

Last Divdend Declared 210 % as on Apr 4, 2000




Entry Load Amount greater than 0 then Entry Load is 0%.


COMPARISION

L&T Tax Advantage Fund - Series I - Growth

21.32 79.58 30,585.82 as on Jun - 2010

Yes BankPetroleum, Gas and petrochemical products

ICICI Prudential Tax plan - Growth

135.31 26.99 73,906.42 as on Jun - 2010

Sterlite Industries (India) Ltd

Banks

Reliance Equity Linked Saving Fund - Series I - Growth 14.50 17.67

48,098.75 as on Jun - 2010

Graphite India Ltd

Pharmaceuticals & Biotechnology

HDFC Tax saver - Growth 222.02 25.83

51,452.99 as on Jun - 2010

Crompton Greaves Ltd

Banks

NAME OF THE FUND

NAV RISK RETURN

MARKET CAP (Cr.)

TOP HOLDING

LARGEST SECTOR

THANK YOU!!!!

an elss scheme is like any other diversified equity fund with an exception of tax-benefit under...

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