An ELSS scheme is like any other diversified equity fund with an exception of tax-benefit under Section 80C of the Income Tax Act. The funds invested have a lock in period of three years. Investments into the equitylinked savings schemes offer dual benefit to an investor. First, the investments are made for a longer period; therefore, the Fund Manager has an opportunity of taking a long term view on the investments. There is stability in terms of entry and exit of funds, owing to its tax saving feature. Therefore, these schemes help in the growth of investor’s wealth over the years. The Fund Manager while managing an ELSS portfolio faces lesser risk of reducing corpus due to uneventful redemptions which gives him opportunity to invest into companies where he believes there is potential for value to be unlocked in the medium to longer term. The Inventors may wish to invest more than the tax saving limit of Rs 1 lakh under section 80C anticipating better returns compared to other schemes of similar asset allocation. Second, the investor gets the benefit of tax exemption for the amount invested into the ELSS schemes since investments up to Rs 1, 00,000 are eligible for deduction from the gross total income under the Income tax Act, Section 80 C. For example, an individual who has earned an income of Rs 5 Lakhs invests Rs 1 Lakh in an ELSS fund, such as Birla Sun life Tax Relief 96. The taxable income in this case would come down by Rs 1 Lakh (5-1) which means that for a taxable income of Rs 1 Lakh, there is zero tax. If the individual does not invest in to the ELSS Fund, his taxable income in this case would be Rs 5 Lakhs and as per the tax slab for men as an instance would be Rs 3,40000 ie., Rs (5 Lakhs – 1,60000). Therefore tax payable would be upto (Rs 3, 00000@10%) + (Rs 40000@20%) which would amount to Rs 38000. For a taxable income of Rs 4 lakhs, there is a tax of Rs 24,000/-.Therefore, in this scenario, you save Rs 14,000/- in taxes by investing in an ELSS scheme. ICICI Prudential Taxplan – Growth The scheme seeks to generate long term capital appreciation from a portfolio that is Invested predominantly in equity and equity related securities Type of Scheme Open Ended Nature Equity Option Growth Inception Date Aug 19, 1999 Face Value (Rs/Unit) 10 Fund Size in Rs. Cr. 1179.34 as on Jun 30, 2010 SIP YES STP NO SWP NO Expense ratio(%) 2.01 Portfolio Turnover Ratio(%) 200 Increase/Decrease in Fund Size since May 31, 2010 (Rs. in crores) 19.87 Minimum Investment (Rs) 500 Purchase Redemptions Daily NAV Calculation Daily Entry Load Amount greater than 0 then and Amount greater than 0 then Entry Load is 0%. Exit Load Exit Load is 0%. L&T Tax Advantage Fund - Series I – Growth The investment objective of the Scheme is to seek to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities and also enabling investors to get income tax rebate as per the prevailing Tax Laws and subject to applicable conditions. Type of Scheme Close Ended Nature Equity Option Growth Inception Date Mar 27, 2009 Face Value (Rs/Unit) 10 Fund Size in Rs. Cr. 3.51 as on Jun 30, 2010 SIP NO STP NO SWP NO Expense ratio(%) 2.50 Portfolio Turnover Ratio(%) 16 Increase/Decrease in Fund Size since May 31, 2010 (Rs. in crores) 0.17 Minimum Investment (Rs) 500 Purchase Redemptions Daily NAV Calculation Daily Entry Load Amount greater than 0 then Entry Load is 0%. Exit Load Exit Load is 0%. Reliance Equity Linked Saving Fund Series I – Growth The primary objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments along with income tax benefit. Type of Scheme Close Ended Nature Equity Option Growth Inception Date Mar 31, 2008 Face Value (Rs/Unit) 10 Fund Size in Rs. Cr. 180.78 as on Jun 30, 2010 SIP NO STP NO SWP NO Expense ratio(%) 2.36 Portfolio Turnover Ratio(%) 66 Increase/Decrease in Fund Size since May 14.23 31, 2010 (Rs. in crores) Last Divdend Declared NA Minimum Investment (Rs) 500 Purchase Redemptions Daily NAV Calculation Daily Entry Load Entry Load is 0%. Exit Load Exit Load is 0% HDFC Taxsaver – Growth The fund plans to provide tax benefits along with capital appreciation Type of Scheme Open Ended Nature Equity Option Growth Inception Date Jun 13, 1996 Face Value (Rs/Unit) 10 Fund Size in Rs. Cr. 2587.65 as on Jun 30, 2010 SIP YES STP NO SWP NO Expense ratio(%) 1.89 Portfolio Turnover Ratio(%) 26.18 Last Divdend Declared 210 % as on Apr 4, 2000 Minimum Investment (Rs) 500 Purchase Redemptions Daily NAV Calculation Daily Entry Load Amount greater than 0 then Entry Load is 0%. Exit Load Exit Load is 0%. COMPARISION NAME OF THE FUND L&T Tax Advantage Fund - Series I Growth NAV RISK RETURN MARKET CAP (Cr.) 21.32 79.58 30,585.82 as Yes Bank on Jun 2010 ICICI Prudential Tax plan - Growth 135.31 26.99 Reliance Equity Linked Saving Fund - Series I - Growth HDFC Tax saver Growth 14.50 17.67 222.02 25.83 TOP HOLDING LARGEST SECTOR Petroleum, Gas and petrochemic al products 73,906.42 as Sterlite on Jun Industries 2010 (India) Ltd Banks Graphite 48,098.75 as India Ltd on Jun 2010 Pharmaceut icals & Biotechnolo gy 51,452.99 as Crompton on Jun Greaves Ltd 2010 Banks THANK YOU!!!!