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

1. EQUITY LINKED SAVING SCHEMES IN
INDIA

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. OPERATION OF MUTUAL FUND
Investors
Fund
Managers
Returns
Securities

4. EQUITY LINKED SAVING SCHEMES
 A tax
saving instrument by mutual funds
 Benefits
Equity Linked Returns
 Tax Saving

 3 Year
Lock-in period

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. 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. 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. EQUITY LINKED SAVING SCHEME VS
RAJIV GANDHI EQUITY SAVING SCHEME
 Different
Objective
 Different
tax Deduction
 Risk

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’.