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Equity Linked Saving Scheme ( ELSS )

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Mutual Funds
Operations of Mutual Funds
Equity Linked Saving Schemes ( ELSS )
Tax Advantage of ELSS
Comparison Between PPF, NSC and ELSS
Equity Linked Saving Scheme VS Rajiv Gandhi Equity Saving Scheme

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Equity Linked Saving Scheme ( ELSS )

  1. 1. EQUITY LINKED SAVING SCHEMES IN INDIA
  2. 2. MUTUAL FUNDS A type of professionally managed collective investment scheme that pools money from many investors to purchase securities  It is a trust that pools the savings of a number of investors who share a common financial goal
  3. 3. OPERATION OF MUTUAL FUND Investors Fund Managers Returns Securities
  4. 4. EQUITY LINKED SAVING SCHEMES  A tax saving instrument by mutual funds  Benefits Equity Linked Returns  Tax Saving   3 Year Lock-in period
  5. 5. TAX ADVANTAGE OF ELSS Particulars Without ELSS/ 80C Tax Saving Investment With ELSS/ 80C Tax Saving Investment Gross Total Income Rs.7,50,000 Rs.7,50,000 Exemption Under Section 80C Nil Rs.1,00,000 Total Income Rs.7,50,000 Rs.6,50,000 Tax on Total Income Rs.80,000 Rs.60,000 Tax Saved on Investment Nil Rs.20,000
  6. 6. ELSS RANKING 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Axis Long Term Equity Fund Birla Sun Life Tax Plan Birla Sun Life Tax Relief 96 BNP Paribas Tax Advantage Plan Canara Robeco Equity Tax Saver DSP Blackrock Tax Saver Fund Franklin Tax shield Fund HDFC Long Term Advantage Fund HDFC Tax Saver Fund HSBC Tax Saver Equity Fund
  7. 7. COMPARISON BETWEEN PPF, NSC AND ELSS Instrument Expected Returns Lock-In Period National Savings Certificate - NSC 8.16% 6 years Public Provident Fund - PPF 8.50% Up to 15 years Around 15%-20% 3 years Mutual Fund ELSS
  8. 8. EQUITY LINKED SAVING SCHEME VS RAJIV GANDHI EQUITY SAVING SCHEME  Different Objective  Different tax Deduction  Risk
  9. 9. CONCLUSION  Purely from a tax management perspective, ELSS investment stands out as a preferred destination.  For others who want liquidity as well as growth and the freedom to shift through funds, then there are other avenues available as well. But from a tax saving perspective, this is a ‘must-have’.

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