which one of these should a moderate investor opt for NSC or ELSS ? Compare the two & justify with reasons.

1. PATNA
PGDBM 2.0
BATCH NO. – PAT01AA2417
GROUP - 2
ET FINPRO
ANCHOR MODULE - 4
Which one of these should a moderate
investor opt for NSC or ELSS?Compare the two
& justify with reasons.

2. PRESENTED BY
SURYANSH RAJ
(Enrollment ID-E14CC1052668
MUKESH KUMAR
(Enrollment ID-E14CC1052387
NEHA KUMARI
(Enrollment ID-E14CC1052781
NEHAL KUMAR
(Enrollment ID-E14CC1052815

3. • Moderate Investor
• Investor Behaviour
• NSC
• Reason To Invest In NSC
• Who Should Invest In NSC
• Who Should Invest In ELSS
• Best ELSS Funds
• Features Of ELSS
• Comparison
• Conclusion

4. Moderate Investor
• Moderate customer
• To achieve a low to moderate level of capital growth
on investments and moderate customer are willing to
accept low to moderate level of investment risk over
the medium to long term.
• The value of the investments can fluctuate and may
fall below the original investment amount. While
volatility is expected to be moderate, short-term
losses may be higher.

5. Behavior Of Moderate Investor
Investor behavior
• Customers engage in purchases that require
limited decision making
• They will go for the debt securities rather
than equities because their investment is in
danger in stagnant economy
• They will take less loans because interest
rate are higher
• They are not willing to take much risk
because economy is not in its good shape

6. NSC (NATIONAL SAVING CERTIFICATE)
• Popularly known as NSC, is an Indian Government Savings
Bond, primarily used for small savings and income tax saving
investments in India. It is part of the postal savings
system of Indian Postal Service (India Post).
• These can be purchased from any Post Office in India by an
adult (either in his/her own name or on behalf of a minor), a
minor, a trust, and two adults jointly. These are issued for five
and ten year maturity and can be pledged to banks as
collateral for availing loans. The holder gets the tax benefit
under Section 80C of Income Tax Act, 1961.

7. Reasons To Invest In NSC
• Save income tax up to Rs 1.5 lakh
• Guaranteed interest of 8.1% per
annum
• Maturity period of only 5 years
• Easily available at all post offices
• Interest is compounded and
reinvested by default

8. Who Should Invest In NSC
• Anyone who is looking for a safe investment avenue
to save taxes can opt for the NSC. The NSC offers
guaranteed interest and complete capital
protection. Since it is backed by the government and
can be bought from most post offices in India
• NSC is also more easily accessible than other tax-
saving investments. However, the NSC cannot earn
inflation-beating returns as compared to other tax-
saving investments like tax-saving mutual funds and
National Pension System.

9. ELSS (EQUITY LINKED SAVING SCHEMES)
 Equity-linked savings scheme popularly known as
ELSS are open-ended, diversified equity schemes
offered by mutual funds in India They offer tax
benefits under the new Section 80C of Income Tax
Act 1961.
 Equity-linked savings scheme popularly known as
ELSS are open-ended, diversified equity schemes
offered by mutual funds in India They offer tax
benefits under the new Section 80C of Income Tax
Act 1961.

10. Best ELSS Funds In 2017-18
The best ELSS funds of recent years are:
• Franklin India Tax-shield
• Reliance Tax-saver
• Axis Long term equity fund
• DSP Blackrock tax saver fund
• Birla Sun Life Tax Relief 96

11. Significant Features Of ELSS
ELSS is a diversified equity mutual fund which has a
majority of the corpus invested in equities. Since it
is an equity fund, returns from an ELSS fund reflect
returns from the equity markets.
This type of mutual fund has a lock in period of 3
years from the date of investment. This means if
you start a Systematic Investment Plan in an ELSS,
then each of your investments will be locked in for 3
years from the respective investment date.
Investors can exit ELSS by selling it after 3 years.

12. Comparison Between ELSS, NSC &
Others

13. NSC and ELSS
• ELSS • NSC
Features NSC ELSS
Minimum investment Rs 100 Rs 500
Maximum investment which can be claimed as tax
deduction
Rs 1 lakh Rs 1 lakh
Period 5 and 10 years 3 years
Risk factor Low risk High risk, depending on markets
Interest rate
8.5% per annum for 5 year term and 8.8% per annum for
10 year term
No fixed interest rate
Frequency of interest accumulation Interest is compounded half yearly NA – depends on market conditions
Fixed return guarantee? Yes No, returns are not fixed
Income Tax deduction applicable? Yes, under Section 80C of IT Act Yes, under Section 80C of IT Act
Tax liability Interest earned is taxable Amount received at end of maturity is not taxable

14. Conclusion:
After studying NSC and ELSS scheme we came to the
conclusion that for any moderate investor, he can take a little
bit of risk that’s why we would like to suggest him to go for
ELSS scheme as instead to NSC because both are giving tax
benefit but ELSS is giving us higher return than NSC in short
tenure.

15. THANK YOU