Get Dual Benefit of
Wealth Creation & Tax Saving
With ELSS

Invest Rs.1.5 lakhs & Save Tax upto Rs. 46,800/-* u/s 80C Invest Now
(* For F.Y. 2020-21 & for Individual who comes under the highest tax bracket)

ELSS Advantages

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

Due to lock in period of 3 years, the fund manager has the opportunity to invest for long term as he does not have to worry about sudden redemption pressure.

Lower lock-in
period

Compared to other tax savings avenues under Section 80C of the Income Tax, ELSS has the shortest lock-in period of 3 years.

Rupee 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 Tax Saving FDs Post Office Time Deposits ELSS
Lock-In Period (Yrs.) 15 5 5 5 3
Rate of Interest (%) 7.10% 6.80% 5.40%* 6.70% Potential to deliver higher returns as it is linked to market
Rates Applicable From 1-April-2020 1-April-2020 With Effect From 08-Jan-21 1-April-2020 --
Rates Applicable Till 29-Jan-2021 29-Jan-2021 29-Jan-2021 --
Compounding Yearly Yearly Quarterly Quarterly --
Taxation of 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:
    • Actual cost of acquisition of such asset
    • 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.
CAPITAL INVESTED ()
Scheme Name 1-Apr-20 1-Apr-19 1-Apr-18 1-Apr-16 1-Apr-14 1-Apr-11 1-Apr-09 1-Apr-06 1-Apr-01
29-Jan-21 29-Jan-21 29-Jan-21 29-Jan-21 29-Jan-21 29-Jan-21 29-Jan-21 29-Jan-21 29-Jan-21
1.50 Lacs 3.00 Lacs 4.50 Lacs 7.50 Lacs 10.50 Lacs 15.00 Lacs 18.00 Lacs 22.50 Lacs 30.00 Lacs
RETURNS GENERATED FROM VARIOUS ELSS SCHEMES
Aditya Birla Sun Life Tax Relief 96 2,22,628 3,90,478 5,62,124 10,20,010 16,48,381 31,23,464 46,07,176 65,91,041 195,95,034
Axis Long Term Equity Fund 2,25,673 4,16,630 6,20,678 11,49,986 18,58,024 37,89,690
BNP Paribas Long Term Equity Fund 2,30,525 4,21,064 6,18,938 10,96,596 17,03,787 31,76,029 46,86,891 64,06,129
Canara Robeco Equity Tax Saver Fund 2,37,421 4,18,942 6,21,257 11,55,855 18,25,293 33,00,625 50,56,845 80,47,345 235,62,217
DSP Tax Saver Fund 2,48,324 4,31,947 6,29,470 11,30,040 18,18,308 34,06,967 50,93,736
Franklin India Taxshield 2,51,909 4,18,281 5,97,237 10,25,065 15,92,309 29,03,533 43,81,164 66,47,535 220,55,191
HDFC Taxsaver 2,38,026 3,91,379 5,53,637 9,57,125 14,54,676 25,31,311 37,59,434 55,46,699 224,27,723
HSBC Tax Saver Equity Fund 2,36,044 4,04,089 5,76,447 10,15,467 15,77,810 28,64,048 41,70,762
ICICI Prudential Long Term Equity Fund 2,47,463 4,20,480 6,08,299 10,69,438 16,62,577 30,63,805 47,20,873 69,82,748 280,90,925
IDFC Tax Advantage (ELSS) Fund 2,71,464 4,44,533 6,18,232 11,05,258 17,28,435 32,14,499 47,12,218
Invesco India Tax Plan 2,39,802 4,23,177 6,20,650 11,31,515 18,01,431 33,89,887 51,69,803
Kotak Tax Saver Fund 2,41,152 4,24,676 6,25,286 11,18,309 17,75,002 31,13,402 44,54,311 61,60,548
L&T Tax Advantage Fund 2,40,528 4,09,198 5,75,555 10,25,170 16,09,597 28,60,746 42,51,860 64,95,534
Mirae Asset Tax Saver Fund 2,59,867 4,55,080 6,72,856 12,83,505
Motilal Oswal Long Term Equity Fund 2,32,717 4,10,184 5,80,343 10,72,387
Nippon India Tax Saver (ELSS) Fund 2,33,897 3,79,990 5,19,126 8,59,684 13,17,899 24,71,891 37,48,133 55,93,994
Principal Tax Savings Fund 2,49,264 4,23,674 6,00,375 10,84,123 17,16,761 31,97,536 45,85,743 61,94,849 185,57,602
SBI Long Term Equity Fund 2,51,875 4,27,741 6,13,186 10,57,722 16,09,407 28,67,218 41,19,082 59,29,779 278,10,106
Sundaram Diversified Equity 2,40,260 4,03,899 5,70,130 9,94,211 15,44,987 26,95,256 38,28,171 56,39,513 209,53,590
Tata India Tax Savings Fund - Reg 2,39,093 4,12,269 5,96,919 10,78,273 17,36,993 32,30,329 47,97,753 68,96,791 216,23,796
Taurus Taxshield 2,30,468 4,00,211 5,80,250 10,70,141 16,49,612 28,28,236 40,65,873 62,28,583 171,88,960
UTI Long Term Equity Fund (Tax Saving) 2,49,604 4,36,504 6,33,070 11,13,984 17,06,349 29,59,044 41,59,081 57,85,068 149,65,534
S&P BSE Sensex 2,45,632 4,24,241 6,33,015 11,39,891 16,94,877 28,17,645 39,11,220 55,13,303 139,57,710
Maximum 2,71,464 4,55,080 6,72,856 12,83,505 18,58,024 37,89,690 51,69,803 80,47,345 280,90,925
Minimum 2,22,628 3,79,990 5,19,126 8,59,684 13,17,899 24,71,891 37,48,133 55,46,699 149,65,534
Average 2,41,728 4,16,565 5,99,730 10,73,357 16,66,882 30,49,376 44,40,469 63,43,077 215,30,062
PPF Calculated at actual rates 1,58,870 3,30,365 5,15,236 9,29,766 14,18,261 23,21,374 30,52,902 43,84,821 74,38,489

(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.

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