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