Transcript What is in a store for a smart tax payer

What is in a store for a smart
tax payer ?
Think Smart…………
Act with smartness………
Enjoy the fruits of smart action…..
Invest in
Tax Saving Schemes
(Equity Linked Saving Schemes - ELSS)
of Mutual Fund
Why ELSS?
Product /
Lock –
Returns
Instrument in-Period ( p.a.)
Features
Min
Investment
ELSS
18.00 %
(returns
on 5
years
investm
ent)
1)
2)
Rs. 500/- P.M
(Systematic
Investment
Plan)
Or Rs. 5000/-
3
3)
Dividend Tax Free
Capital Gains Tax
Free
Investment up to 1
Lac (Tax
exemption)
PPF
15
8%
Limited up to Rs.70000/- Rs. 500/-
NSC
6
8%
Interest Taxable
Rs 100/-
Bank
Deposit
5
9%
Interest Taxable
Rs. 100/-
ULIP(UTI)
5
12%
Capital gain Taxable
Rs.10000/-
Performance of Top Tax Saving Schemes.
Sr. No.
Schemes Name
5 Years
(30/11/10)
Since Launch
(30/11/10)
1
Franklin India Taxshiels
17.22%
26.66%-April99
2
Hdfc Tax Saver
18.71%
24.63%-June96
3
Icici Pru Tax Plan
21.23%
18.58%-AUG99
4
Reliance Tax Saver
18.17%
17.96%-Sep2005
5
Sundaram BNP Paribas Tax
Saver
20.20%
28.1%-Dec99
Magic of SIP
If Investor would have started to invest Rs.1000 (Rs. One Thousand Per Month Only) for Five
years or since inception. The amount, investor would got, is unimaginable with additional
benefits of tax savings.
Inception
Date
Sr.
No.
Scheme Name
1
Franklin India Taxshiels
2
Amount of
Investment
(Rs.)
Market value
As on 30/11/2010
(Rs.)
For
60mth
Since
Inception
For
60mth
Since
Inception
Apr-99
60,000
140,000
95,615
756,716
Hdfc Tax Saver
Jun-96
60,000
176,000
101,164
3043,620
3
Icici Pru Tax Plan
Aug-99
60,000
136,000
85,550
418,412
4
Reliance Tax Saver
Sep-05
60,000
63,000
93,990
100,517
5
Sundaram BNP Paribas Tax Saver
Nov-99
60,000
132,000
94,027
695,390
Why invest in Tax Saving Schemes
• Opportunity to benefit from the long term India Growth Story
• 3 Years lock-in- provides mutual fund :* enough flexibility to take decision with long term horizon
* freedom from short term liquidity concerns
* potential to invest in fundamentally strog stocks which are
likely to create long term value.
* ability to create a stable portfolio with lower turnover could
result in lower impact / transaction cost.
Positive outlook for Equity
•
•
•
•
•
•
•
India growth story intact at 8-9 % GDP
Sensex company growth above 15 %
Favourable Demography
Domestic Consumption story
Less Dependant on Exports
Less Vulnerable to global economy
Strong outsourcing story – IT / Pharma
Have you considered Inflation ?
• As inflation rises, every rupee will buy a smaller
percentage of the same product.
• To protect the capital, investor should earn
higher rate of returns than the rate of inflation
• With rise in Inflation, purchasing power will be
reduced to that extent
Why Tax Saving Schemes ?
Tax
Saving
Schemes
Equity
Schemes
CAGR (Compounded annual growth return) for 3 years past performance
may or may not be sustained in future
Why invest in equity funds ?
* Better inflation adjusted returns from equity
compared to alternative investment options.
* Historical evidence in favour of equity
* No long term capital gain on equity (above one
year)
* Indian growth story drive the market