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A study on ELSS(Equity Linked Saving
scheme) by
Satish Reddy.k09mbma25
History of mutual funds in India.
Structure of a mutual fund company.
Broad classification of mutual funds.o equity fundso money market fundso hybrid fundso debt/income fundso gilt funds
Introduction
To analyze how ELSS works for the objective of the investor .
Comparison of ELSS with other tax saving options.
To study the benefits of investing in ELSS.
Objectives
Section 80 c of The income tax act 1961 provides financial instruments with tax breaks
o limit of non taxable investment of Rs. 1 lack.
o limit on contribution to pension funds Rs.10k.
o Deduction for tuition fee for the education of children a limit of Rs.1 lack
Introduction to section 80c
Section 10(35) : Exemption from long term gains from mutual funds.
Section 10(38): income from transfer of long term capital assets.
Section 80D: Tax relief to medical insurance premium.
Section 54 EC: Exemption on long term cap gains on any asset , if gains are invested with in six months in bonds of REC, NHA.
Other sections
Features of ELSSo twin benefito Instrumento Deductionso Period Modes of investmento Lump sumo SIP
About ELSS
Rupee cost averaging
Small contribution
Discipline
Hassle free investing
No entry load
Benefits of ELSS (SIP)
A comparison
Risk factor
NAV is not transparent.
A high Minimum lock in period.
Prospective DTC.(2012)
Limitations of ELSS
Return Analysis
Style Box Analysis
NAV Graph Analysis
Analysis of ELSS of different companies
Return Analysis
Style boxfor kotak,LIC,SBI,Fidielity,HDFC
Style box for DSP blackrock,ICICI,Principal
Style box for
NAV graph
DSP Block Rock FIDELITY tax saver
NAV graph..
Principal tax saver Sundaram BNP
NAV graph..
NAV graph..
An investor should consider
Assessing the risk profile.
Comparing returns over 3 yr period.
Comparing on other parameters.
Evaluating the fund house.
Selecting the dividend option.
Conclusions and findings
Thank you