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KNOW THESE 5 THINGS BEFORE

INVESTING TO SAVE TAX

VARIETY OF TAX SAVING INVESTMENT OPTIONS


There are a variety of tax saving investment options to choose from when it comes to meeting the deadline for submitting 'Proof of Investments'
under section 80C wherein one is eligible to claim upto Rs.1.50 lakh per annum as tax deduction. Over the years, most investors have relied on
only traditional investment options like PPF, NSC and Bank FDs to save taxes and not looked beyond. However, with interest rates on the
decline, it may be a good time to explore equity oriented investment options for their potential to offer higher inflation adjusted returns over the
long run1. One such option is Equity Linked Savings Scheme or ELSS offered by Mutual Funds.

1. TRADITIONAL TAX SAVING AVENUES VS ELSS

Avenues
Characteristics
Lock in period (in years)

ELSS

PPF
15^

NSC

Bank FD

Capital gains
& Dividends

Interest

Interest

Interest

Tax treatment of gains^^

Capital gains &


Dividends are
Tax-free

Interest is
Tax free

Interest is
Taxable

Interest is
Taxable

Type of returns

Market Linked**

Fixed

Fixed

Fixed

Nature of gains

2. HOW MUCH TAX DO YOU SAVE?


Under section 80C, 80CCC and 80 CCD (1) of Income Tax Act 1961, an Individual / HUF is entitled to an
aggregate amount of deduction from Gross Total Income upto Rs. 1.5 Lacs (from AY 2016-17) on specified
qualifying investments / contributions / deposits / payments.

Investments /
Contributions /
Deposits / Payments
of

Rs. 1,50,000

Tax savings
upto

Rs. 51,912*

3. BESIDES SAVING TAX, ELSS OFFERS MUCH MORE


LOWER LOCK-IN
PERIOD

ELSS currently has lowest lock-in period (3 years) among all tax saving
investment avenues under section 80C of Income Tax Act,1961

TAX-FREE GAINS

Gains (either dividends or long term capital gains) are tax free as per
current tax laws

OPERATIONAL
EASE

Investment can be made either in lumpsum or systematically (SIPs)

POWER
OF TWO

Tax Saving + Potential for Long Term Wealth Creation

^Partial withdrawals are allowed from 7th financial year and subject to conditions. However, full amount can only be withdrawn after 15 years.
Source: www.indiapost.gov.in for PPF and NSC and www.sbi.co.in for Bank FD.
^^ The information provided is for general information purpose only and the disclosures in respect of the tax implications are in accordance with prevailing tax laws and there can be no
assurance or guarantee that the tax implications prevailing at the time of investment in the scheme will endure indefinitely. Further, statements with regard to tax implications
mentioned herein are mere expressions of opinion and are not representations of the mutual fund to induce any investor to acquire units of the schemes of the mutual fund. In view of
the individual nature of the implications, each investor is advised to consult with his or her own tax advisors/authorised dealers with respect to the specific tax and other implications
arising out of his or her participation in the schemes.
**Returns are subject to market risks.
*Assuming maximum marginal tax rate of 34.61% (including 30% income tax, 12% surcharge, 2% education cess and 1% secondary and higher education cess)
1
The average 3 year rolling return for the S&P BSE Sensex was 11.9% while the corresponding average inflation rate for this period was 8.1%. Returns are compounded annualized. 3
year rolling returns (with 1 month shift) over a 11 year period from 30-Sep-2004 to 31-Dec-2015. Inflation taken for period between 30-Sep-2004 & 31-Dec-2015. Upto Dec 2011
CPI IW data is taken. From Jan 2012 CPI Combined data (new series) is taken. Past performance may or may not be sustained in future.

4. WHY FRANKLIN INDIA TAXSHIELD (FIT), OUR ELSS FUND?


Avail dual benefits
Tax Saving + Growth potential
(through equities)

3
4

Benefit from Blend Investment style


(combination of Growth and Value)

5. PERFORMANCE SPEAKS FOR ITSELF

Long term Performance + Dividend track record


of over 15 years

Movement of Rs. 10,000 invested in FIT, CNX 500 & CNX Nifty

500000

1. Rs. 10,000 invested in FIT since inception


would have returned Rs. 4.18 lakh (over 40
times) vis--vis Rs. 96,861 (less than
10 times) vis--vis its benchmark
(CNX 500/ Nifty 500) for the period ended
December 31, 2015.

450000
FIT: Rs. 418,216

400000

Rupees

350000
300000
250000
200000

2. Annualised return of 24.99% since


inception vs 14.53% by the benchmark.2

150000
B: CNX 500 - Rs. 96,861
100000

Past performance may or may not be sustained in future. The


graph shows the movement of Rs. 10,000 invested in FIT
Growth Plan , CNX 500 and CNX Nifty since inception of the
fund till Dec 31, 2015. B: Benchmark and AB: Additional
Benchmark. Inception Date: April 10, 1999. Please refer
www.franklintempletonindia.com for details on performance
of all schemes (including Direct Plans).

AB: CNX Nifty- Rs. 79,991

50000

FIT

B: CNX 500

Dec - 15

Feb - 15

Apr - 14

Jun - 13

Aug - 12

OCt - 11

Dec - 10

Feb - 10

Apr - 09

Jun - 08

Aug - 07

Oct - 06

Dec - 05

Feb - 05

Apr - 04

Aug - 02

Oct - 01

Dec - 00

Feb - 00

Apr - 99

Jun - 03

1
2

Market Cap agnostic portfolio with focus on


Bottom up stock selection

AB: CNX Nifty

FUND FACTS: SCHEME PERFORMANCE


Discrete Returns (%)
Scheme

NAV as on Dec 31, 2015

Dec 31, 2014 to


Dec 31, 2015
NAV*

Franklin India Taxshield (FIT)-Growth


B:CNX 500
AB:CNX NIFTY

418.2161

401.9406

Dec 31, 2013 to


Dec 31, 2014

Since inception
till Dec 31, 2015

Dec 31, 2012 to


Dec 31, 2013

Returns

NAV*

Returns

4.05%

256.1355

56.92%

NAV*
241.3250

Value of Investment of
Rs.10,000 since
inception

Inception Date

10.04.1999

Returns

NAV*

Returns

6.14%

10

24.99%

418,216

-0.72%

37.82%

3.61%

14.53%

96,861

-4.06%

31.39%

6.76%

13.23%

79,991

4.08%

10

22.12%

827,300

8.98%

9.83%

79,316

Performance of Top 3 and bottom 3 schemes managed by the fund managers of the scheme
Franklin India Bluechip Fund (FIBCF) - Growth
B:S&P BSE SENSEX
AB:CNX Nifty

344.8196
-

Franklin Infotech Fund (FIF) - Growth

113.8764

B: S&P BSE Information Technology #

AB:Nifty 50
Franklin India Prima Plus (FIPP) - Growth
B:Nifty 500
AB:Nifty 50
Franklin India Monthly Income Plan (FIMIP) - Growth
B: Crisil MIP Blended Fund Index
AB: Crisil 10 Year Gilt Index
Franklin India Life Stage Fund of Funds (FILSF) - The 50s Plus Floating
Rate Plan - Growth
Benchmark$
Additional Benchmark
FILSF - The 50s Plus Plan - Growth

435.8831
44.3674
29.4135
27.9002

338.0004

2.04%

-5.03%

246.3181

37.22%

236.6664

29.89%

-4.06%

31.39%

6.76%

9.80%

78,836

3.75%

94.0101

16.75%

61.3091

53.34%

10

19.72%

227,784

4.51%

16.54%

59.78%

N.A.

-4.06%

31.39%

6.76%

13.69%

92,891

4.38%

266.3419

56.79%

5.55%

10

19.42%

435,883

-0.72%

37.82%

3.61%

8.94%

61,796

-4.06%

31.39%

6.76%

8.84%

60,593

5.97%

10

10.25%

44,367

4.41%

N.A.

N.A.

-0.68%

N.A.

N.A.

7.70%

10

9.85%

29,414

9.15%

9.22%

27,530

109.7588

417.6007

41.9480

5.77%

6.79%

7.39%

27.5055
26.0729

6.94%
5.57%
N.A
7.01%

34.2746

22.39%

16.83%

14.14%

23.9664
22.2305

14.77%
13.21%
N.A
17.28%

252.3438

32.3434

22.2535
21.4038

1.12.1993

22.8.1998

N.A.

N.A

N.A

N.A

3.86%

10

8.86%

27,900

Benchmark$

5.87%

17.40%

4.91%

8.35%

26,380

Additional Benchmark

N.A

N.A

N.A

N.A

N.A

29.9.1994

28.9.2000

9.7.2004

1.12.2003

Past performance may or may not be sustained in future.


Fund Managers: FIBCF: Anand Radhakrishnan & Anand Vasudevan, FIT: Anand Radhakrishnan, FIPP: Anand Radhakrishnan & R. Janakiraman, FIF: Anand Radhakrishnan & Varun Sharma, FILSF: Equity-Anand
Radhakrishnan; Debt-Sachin Padwal-Desai, Pallab Roy, FIMIP: Equity-Anand Radhakrishnan; Debt-Sachin Padwal-Desai & Umesh Sharma. B: Benchmark. AB: Additional Benchmark. N.A.: Not Applicable. *NAV
(beginning of period). $Benchmark: The 50s Plus Plan - 20% S&P BSE Sensex+ 80% Crisil Composite Bond Fund Index; The 50s Plus Floating Rate Plan - 20% S&P BSE Sensex + 80% Crisil Liquid Fund Index. Discrete
12 months performance is absolute and since inception returns are compounded annualized. Load is not taken into consideration. Dividends assumed to be reinvested and Bonus is adjusted. The top three and bottom
three funds managed by the fund manager(s) have been derived on the basis of the since inception returns. On account of difference in the type/category, asset allocation or investment strategy, inception dates,
performances of these funds are not strictly comparable. Please refer to www.franklintempletonindia.com for details on performance of all schemes (including Direct Plans). # Index adjusted for the period September 16,
2005 to April 15, 2015 with the performance of S&P BSE IT Index.

For more information, please visit www.askwhatelss.com


Disclaimer: This note is dated December 2015. The information contained in this note is not a complete representation of every material fact
regarding any industry, security or the fund and is neither an offer for units nor an invitation to invest. This communication is meant for use by the
recipient and not for circulation/reproduction without prior approval. Regulatory/ taxation details mentioned in this note are provided on a best effort
basis and are as per the existing laws and subject to change from time to time. The recipient is advised to consult its advisor/ tax consultant prior to
arriving at any investment decision.
Scheme Classification and Objective: Franklin India Taxshield (FIT): An open-ended Equity Linked Savings Scheme with an objective to provide
medium to long term growth of capital along with income tax rebate. Load Structure: FIT Entry Load: Nil: Exit Load: Nil. All subscriptions in FIT are
subject to a lock in period of 3 years from the date of allotment and the unit holder cannot redeem, transfer, assign or pledge the during the period. The
Trustee, AMC, their directors or their employees shall not be liable for any of the tax consequences that may arise, in the event that the schemes are
wound up before the completion of the lock-in period. Investors are requested to review the prospectus carefully and obtain expert professional advice
with regard to specific legal, tax and financial implications of the investment/participation in the scheme.
The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market. The Mutual Fund is not
guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus.
The past performance of the mutual funds managed by the Franklin Templeton Group and its affiliates is not necessarily indicative of future
performance of the schemes.
2
Compounded annualised returns from the inception date of the fund, i.e., April 10, 1999 till December 31, 2015 for both the fund and the benchmark.

Product label for


Franklin India Taxshield (FIT)

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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