Equity Linked Savings Schemes (ELSS) are the ideal way to gain in the share market while reducing your tax burden. These are diversified schemes, floated by different mutual fund houses, which invest more than 80% of their funds in shares and have the added advantage of tax benefits. You also benefit from portfolio diversification and professional fund management.
Objectives & Features:
- Type of scheme: Diversified equity scheme
- Scheme objective: Capital appreciation
- Asset allocation: 80-100% in equity
- Lock in period: 3 years
- Return: In line with equity market returns
Advantages of ELSS:
- Tax benefits
- Investments to the extent of Rs.1 lakh are eligible for deduction under Section 80C
- Capital gains on redemptions are exempt from tax under Section 10 (38)
- Dividends are tax free under Section 10 (35)
- Advantage over other tax saving instruments
- Shorter lock-in period of three years
- Potential for higher returns
HIGHEST RATED ELSS FUNDS:
| Fund | NAV (@ Dec 26) |
Rating | Percentage Returns | ||
| 3 Months | 1 Year | 3 Years | |||
| Sundaram BNP Paribas Taxsaver-G | 23.57 | ***** | -27.11 | -45.64 | 6.10 |
| Magnum Taxgain-G | 30.08 | ***** | -35.68 | -54.38 | -1.26 |
| Canara Robeco Equity Tax Saver | 11.13 | **** | -28.21 | -48.42 | 0.77 |
| Sahara Tax Gain-G | 17.00 | **** | -27.24 | -45.82 | 0.62 |
| Franklin India Taxshield-G | 96.00 | **** | -29.18 | -47.50 | 0.36 |
| Principal Personal Tax Saver | 46.43 | **** | -44.41 | -59.99 | -1.10 |
| HDFC Taxsaver-G | 96.33 | **** | -34.46 | -52.72 | -5.18 |
| Birla Sun Life Tax Relief 96-G | 5.11 | *** | -40.05 | -62.77 | -4.01 |
| Birla Sun Life Tax Plan-G | 7.09 | *** | -35.29 | -54.24 | -4.30 |
| Principal Tax Savings | 42.12 | *** | -42.32 | -63.43 | -4.49 |
Nice writing. You are on my RSS reader now so I can read more from you down the road.
Allen Taylor
Hi Allen,
Thanks for visiting my site. Happy holidays to you & all my readers!
When you want to invest your hard earned money for a longer period of time and get a regular income, Fixed Deposit Scheme is ideal. It is SAFE, LIQUID and FETCHES HIGH RETURNS.
Loan / Overdraft facility is available against bank fixed deposits. Now many banks don’t charges for premature withdrawal.
Hi Sushil, Thanks for visiting my site. I am glad that you liked this post. You may also choose to subscribe to its RSS feeds…
Hello You did a great job with this blog. I loved Equity Linked Savings Scheme (ELSS) ready reckoner
Hi Brandon,
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This is a great subject with good data so well done on your success and interesting topic it should be discussed. Did you totally agree with the top half of this? I wonder about Birla Mutual Fund India. The rest was fine and informative. Ill check back soon for any added comments, thanks.
I found your blog via Google while searching for Equity Line and your post regarding Equity Linked Savings Scheme (ELSS) ready reckoner looks very interesting for me
Hi “Birla Mutual Fund India” & “Henry Meyers”,
Thanks for visiting my site. I am glad that you liked the content.
“Birla Mutual Fund India” - I do agree that Birla Mutual Fund may not be following the route as others, but what I wrote is generic about all the ELSS funds, and not about any particular fund. So one may deviate from the general rules, but by-and-large everyone under this category follow similar rules / trends.
Hi Equity Linked Savings Scheme (ELSS) ready reckoner was very well written. Good job.