MBA degree project

1. A COMPARATIVE
STUDY ON EQUITY-
LINKED SAVINGS
SCHEMES
Presented by:
Group 3

2. CONTENTS
1. Introduction
2. What is the meaning of ELSS, how long it has been there, what are the Investment patterns in
ELSS by common investors, etc?
3. What kind of ELSS schemes have been launched by Indian AMCs - product features,
investment volume, etc?
4. Comparison between various such schemes - in terms of volume of investments, returns,
investment patterns, and other related domains.

3. INTRODUCTION
ELSS is a scheme offered by mutual funds, which invests a majority of its
corpus in equity and equity-related instruments.
ELSS fluctuate depending on the equity market and there are no fixed returns.
ELSS schemes are open-ended but It has a lock-in period of 3 years
unlike other kinds of mutual funds.
NAV or the price of the fund is declared every business day.
This scheme is eligible for tax deductions under the provisions of Section
80C of the Income Tax Act, of 1961.

4. WHAT IS
THE
MEANING OF
ELSS?
 ELSS or Equity Linked Savings Schemes are Mutual fund investment
schemes that help you save income tax.
 The Income Tax Act, under section 80c, allows taxpayers to invest up
to INR 1.5 lakh in specific securities and claim it as a deduction from
their taxable income.

5. HOW LONG IT HAS BEEN
THERE?
 There were 40 ELSS funds, but only 27 schemes completed 10 years of
existence.
 Regular and growth options of the schemes were considered for the
analysis.
 We further analyzed the performance of the scheme by looking at the
rolling returns for a 10-year horizon.

6. WHAT ARE THE INVESTMENT
PATTERNS IN ELSS BY COMMON
INVESTORS?
A. Invest directly from the AMC website.
B. Through an online mutual fund investment platform.
C. By using your Demat Account.
D. Through registrars like Karvy and CAMSE.
E. Through your Agent.

7. WHAT KIND OF ELSS SCHEMES HAVE
BEEN LAUNCHED BY INDIAN AMCs?
GROWTH OPTION
DIVIDEND OPTION
DIVIDEND
REINVESTMENT
OPTION

8. Features of Equity Linked Savings
Scheme
Tax Benefit
DIVIDEND AND GROWTH
OPTION
SYSTEMATIC INVESTMENT
PLAN
TENURE 3 years
Returns
Depends on market conditions; there is no
assured returns.
Safety/ Risk High risk funds
Tax exemption
As per Section 80C of the Income Tax Act,
investment in ELSS up to Rs. 1, 50,000 will
be exempted from tax.
Tax on interest/ returns Capital gains and dividends are tax free.
Maximum investment No maximum limit on investment
Minimum investment Rs. 500
 OTERS FEATURES

9. • INVESTMENT VOLUME

10. Investment Returns Lock-in Period Tax on Returns
5-Year Bank Fixed
Deposit
4% to 6% 5 years Yes
Public Provident Fund
(PPF)
7% to 8% 15 years No
National Savings
Certificate
7% to 8% 5 years Yes
National Pension System
(NPS)
8% to 10% Till Retirement Partially Taxable
ELSS Funds 15% to 18% 3 years Partially Taxable
 Comparison of ELSS With Other Tax-
Saving Instruments

11. ● Team Members:
Kushal Rakshit
Bipasha Khatu
Shraya Roy
Swarnadeep Saha
Rahul Ganguly
Dipjyoti Debnath
Paromita Sinha
Sanya Jaiswal
Arkadip De