GET DUAL BENEFIT of

WEALTH CREATION & Tax Saving

WithELSS

Invest Rs.1.5 lakhs & Save Tax upto Rs. 46,800/-* u/s 80C

Start Investing Now

(* For F.Y. 2018-19 & for Individual who comes under the highest tax bracket)

ELSS ADVANTAGES

HIGHER TAX ADJUSTED RETURN
HIGHER TAX ADJUSTED RETURN

As returns are market linked, ELSS has potential to deliver higher tax adjusted returns than traditional tax saving options

STABILITY IN TERMS OF EXIT OF FUNDS
STABILITY IN TERMS OF EXIT OF FUNDS

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.

LOWER LOCK IN PERIOD
LOWER LOCK IN PERIOD

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.

COST AVERAGING
COST AVERAGING

Investment in ELSS through SIP route helps in
averaging out the cost of purchase.

ELSS V/S OTHER TAX SAVING PRODUCTS

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 --
Compounding Yearly Yearly Quarterly Quarterly --
Taxation on Returns Tax Free Taxable as per slab Taxable as per slab Taxable as per slab Capital Gains are
Taxable @ 10%$^#
  • * Rate offered by SBI Tax Saving Scheme FD
  • $ Finance Bill, 2018 proposes levy of income-tax at the rate of 10% (without indexation benefit) on long-term capital gains exceeding Rs. 1 lac from equity shares and equity mutual funds provided transfer of such units is subject to STT.
  • ^ In case of the long term capital asset acquired before 1st Feb 2018, cost of acquisition shall be deemed to be the higher of: a) Actual cost of acquisition of such asset
    b) Fair market value of such asset as on 31st Jan 2018
  • # Dividend in the hands of unitholder is tax free but AMC will deduct 10% Dividend Distribution Tax plus applicable surcharge
  • @ 3 yr & 5 yr average CAGR return of all ELSS schemes as on 31ˢᵗ May 2018 is 10.80% & 18.39% respectively.

Returns Comparison between ELSS Schemes & PPF

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
CAPITAL INVESTED
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
HDFC Taxsaver 1,03,758 2,41,155 3,69,724 7,46,180 12,13,104 21,51,410 29,02,681 72,25,169
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
Kotak Taxsaver 1,04,268 2,39,909 3,71,342 7,74,254 12,51,256 20,31,952 26,29,268 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
Taurus Taxshield 1,14,404 2,58,755 3,99,596 7,86,337 12,52,885 20,71,782 29,37,136 56,58,881
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
Maximum 1,21,559 2,75,071 4,41,203 8,98,110 16,13,266 26,14,434 35,18,416 82,92,953
Minimum 1,00,030 2,29,534 3,50,048 7,25,657 12,12,686 19,86,361 25,83,101 48,77,739
Average 1,10,884 2,51,585 3,89,498 8,08,623 13,58,294 23,01,979 30,64,690 69,33,800
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.