ICICI Prudential Mutual Fund

Equity mutual fund

ICICI Prudential Mutual Fund

Equity mutual fund

WHAT ARE EQUITY LINKED SAVINGS SCHEMES (ELSS)?

While tax planning may seem to be a difficult

process, Mutual Funds offer you a simple way to
get tax benefits, while aiming to make the most of
the potential of the equity markets.
An Equity Linked Savings Scheme (ELSS) is an
open-ended Equity Mutual Fund that doesn't just
help you save tax, but also gives you an
opportunity to grow your money. It qualifies for tax
exemptions under section (u/s) 80C of the Indian
Income Tax Act,1961 .

ICICI Prudential Mutual Fund

Equity mutual fund

ICICI Prudential Mutual Fund

Equity mutual fund

Along with the tax deductions, an ELSS offers you the following
benefits:
An opportunity to grow your money by investing in the equity market.
Long-term capital gains from these funds are tax free in your hands.
The lock-in period is only 3 years.
You can also opt for a Dividend Payout option, thereby realizing some
potential gain during the lock-in period.
You can invest through a Systematic Investment Plan and bring
discipline to your tax planning.

# However, it must be noted that any dividend payment will be from the
NAV of the Scheme and therefore the NAV of the scheme will fall to the
extent of dividend payment. Also dividend payment is subject to
availability of distributable surplus and approval from Trustees.

ICICI Prudential Mutual Fund

Equity mutual fund

Points to remember while choosing an

appropriate ELSS
You must always remember to do thorough research
when you invest in an ELSS fund. You must look at the
long term performance of the fund before putting your
money in it. Also remember to look at the fund details
like the fund managers investment approach, portfolio
of the fund, the expense ratio of the fund and how
volatile the fund has been in the past.

ICICI Prudential Mutual Fund

Equity mutual fund

ICICI Prudential Mutual Fund

Equity mutual fund

When you invest in certain schemes like ELSS, Public

Provident Fund, certain Bank Fixed Deposits etc. you can
claim up to Rs.1,50,000 as a deduction from your gross
total income in a financial year under Section 80C of
Income Tax Act, 1961. The Table below will help further
explain how this works
Particulars

Without Tax Saving Investments

u/s 80C

With Tax Saving

Investments u/s 80C

Gross Total Income

Rs.7,50,000

Rs.7,50,000

Exemption u/s 80C

Nil

Rs.1,50,000

Total Income

Rs.7,50,000

Rs.6,00,000

Tax on Total Income

Rs.75,000

Rs.45,000

Tax saved

Nil

Rs.30,000

ICICI Prudential Mutual Fund

Equity mutual fund

llustration of Tax exemption for an individual less than 60

years in receipt of salary income for the assessment year
2015-16 (FY 2014-2015). Along with the tax deductions, an
ELSS offers you the opportunity to grow your money by
investing in the equity market. Long-term capital gains from
these funds are tax free in your hands and the lock-in period is
only 3 years. Furthermore, you can also opt for a Dividend
Payout option, thereby realizing some potential gain during the
lock-in period, and also choose to invest through a Systematic
Investment Plan and bring discipline to your tax planning.

ICICI Prudential Mutual Fund

Equity mutual fund

For more information you can contact us on:

Email: enquiry@icicipruamc.com
Website: http://www.icicipruamc.com/

ICICI Prudential Mutual Fund

Equity mutual fund

Thank you