As returns are market linked, ELSS has potential to deliver higher tax adjusted returns than traditional tax saving options
Since there is a lock in period of 3 years, the fund manager has the opportunity to invest the funds for long term as he does not have to worry about sudden redemption pressure.
In comparison to the various other investment avenues under section 80C of the Income tax act, ELSS has the shortest lock in period of 3 years.
Investment in ELSS through
SIP route helps in
averaging out the cost of purchase.
|Particulars||PPF||NSC (5 Yr Lock-in)||Tax Saving FDs||Post Office Time Deposits||ELSS|
|Lock-In Period (Yrs.)||15||5||5||5||3|
|Rate of Interest (%)||7.60%||7.60%||6.75% *||7.40%||Potential to deliver higher returns as it is linked to market|
|Rates Applicable From||1st April 2018||1st April 2018||With effect from
28th May 2018
|1st April 2018||--|
|Rates Applicable Till||30th June 2018||30th June 2018||30th June 2018||--|
|Taxation on Returns||Tax Free||Taxable as per slab||Taxable as per slab||Taxable as per slab||Capital Gains are
Taxable @ 10%$^#
The below table shows the value of Rs. 1 Lac invested in PPF, Sensex and various ELSS Schemes as on 31ˢᵗ May of every year. (Valuation Date : 31ˢᵗ May 2018)
Note: Amount assumed Rs. 1 Lac in PPF & ELSS. However, deduction u/s 80C has been increased from Rs. 1 Lac to Rs. 1.5 Lacs w.e.f 22ⁿᵈ August 2014.
|Scheme Name||1 Year||2 Years||3 Years||5 Years||7 Years||10 Years||12 Years||15 Years|
|Rs. 1 Lac||Rs. 2 Lacs||Rs. 3 Lacs||Rs. 5 Lacs||Rs. 7 Lacs||Rs. 10 Lacs||Rs. 12 Lacs||Rs. 15 Lacs|
|RETURNS GENERATED FROM VARIOUS ELSS SCHEMES (In Rs. Lacs)|
|Aditya Birla Sun Life Tax Relief 96||1,18,277||2,61,322||4,07,301||8,89,575||15,11,321||24,97,125||33,25,022||68,23,675|
|Axis Long Term Equity Fund||1,21,559||2,63,380||4,05,452||8,98,110||16,13,266||NA||NA||NA|
|BNP Paribas Long Term Equity Fund||1,07,920||2,34,320||3,57,608||7,55,957||12,90,322||22,19,650||28,01,342||NA|
|Canara Robeco Equity Tax Saver Fund||1,11,169||2,61,218||4,04,490||8,18,209||13,48,456||24,22,814||35,18,416||78,25,407|
|DSP BlackRock Tax Saver Fund||1,07,139||2,44,573||3,87,531||8,20,411||13,95,155||24,21,469||NA||NA|
|Franklin India Taxshield||1,11,149||2,41,285||3,73,354||7,97,212||13,47,223||24,23,631||33,60,982||75,18,672|
|HSBC Tax Saver Equity Fund||1,06,819||2,45,103||3,85,276||7,85,299||13,30,805||22,96,588||NA||NA|
|ICICI Prudential Long Term Equity Fund (Tax Saving) - Reg||1,09,508||2,42,171||3,74,049||7,75,808||13,03,603||23,61,195||31,64,974||77,42,504|
|IDFC Tax Advantage (ELSS) Fund||1,17,609||2,70,993||4,15,232||8,86,024||15,15,466||NA||NA||NA|
|Invesco India Tax Plan||1,16,310||2,56,143||3,96,603||8,46,642||14,40,001||26,14,434||NA||NA|
|L&T Tax Advantage Fund||1,12,782||2,60,615||4,09,585||8,43,044||13,83,182||24,46,713||34,25,021||NA|
|Mirae Asset Tax Saver Fund||1,13,267||2,69,833||NA||NA||NA||NA||NA||NA|
|Motilal Oswal Long Term Equity Fund||1,14,935||2,75,071||4,41,203||NA||NA||NA||NA||NA|
|Principal Tax Savings Fund||1,13,298||2,64,912||4,14,950||8,60,463||14,73,504||23,92,957||30,36,787||62,89,588|
|Reliance Tax Saver (ELSS) Fund||1,00,030||2,29,534||3,50,048||7,64,717||13,21,727||24,22,605||32,89,678||NA|
|SBI Magnum Tax Gain Scheme 93||1,05,232||2,31,461||3,52,977||7,25,657||12,15,010||20,35,152||27,48,053||82,92,953|
|Sundaram Diversified Equity||1,07,863||2,47,207||3,88,694||7,96,259||13,08,105||21,61,390||29,69,942||71,62,558|
|Tata India Tax Savings Fund||1,12,288||2,52,785||3,98,986||8,54,788||14,38,805||24,78,390||32,77,946||68,54,654|
|UTI Long Term Equity Fund (Tax Saving)||1,09,875||2,43,119||3,75,464||7,47,514||12,12,686||19,86,361||25,83,101||48,77,739|
|S&P BSE Sensex||1,13,410||2,45,862||3,72,791||6,97,401||11,06,090||17,71,240||23,53,781||47,32,426|
|PPF Calculated @ Actual Rates||1,07,829||2,24,307||3,50,839||6,37,886||9,76,743||15,94,563||20,93,314||30,01,347|
(Past performance may or may not sustain in future)
Disclaimer: The information contained in this report has been obtained from various sources. While
utmost care has been taken for the preparation of this report, we do not guarantee its validity or
completeness. Neither any information nor any opinions expressed constitute an offer, or an invitation to
make an offer to buy or sell any fund. Investors should take financial advice with respect to the suitability
of investing their monies in any fund discussed in this report.
Mutual fund investment are subject to market risk. Please read Scheme Information Document and Statement of Additional Information carefully before investing.