Equity –Linked Savings Schemes(ELSS)

ELSS, an acronym for Equity Linked Savings Scheme, which is

a Tax Saving Mutual Fund Scheme.

ELSS mutual funds in simple term are mutual fund schemes

maintaining a minimum of 65% of their investments in

equity.

Open-ended scheme.

Returns from an ELSS fund are market related and has a lock in

period of three years..

Investors get the Tax Benefit on the amount invested as per

the Income Tax Act’1961.

Lump sum, Systematic Investment Plan and Systematic

Transfer Plan options are also available.

Disclaimer : Mutual Funds and securities investments are subject to market risk and there can be no assurance or guarantee that the objectives of the Schemes will be achieved.

Past performance may or may not be sustained in the future. Refer to the respective SID and statement of Additional Information before Investment. PPF/NSC rate effective as

applicable for the year 2014-15. Deduction under section 80 C for FD has been started from 2006 only. Interest rate source: RBI & SBI

• Equity oriented funds are exempt from long term capital gain tax and any capital

appreciation in equity oriented funds after 1 year is tax free.

• Tax Free Dividend in the hands of the investor.

• Shorter lock in period of 3 years as compared to other traditional tax saving vehicle.

• Investors are eligible for claiming Deduction up to Rs. 1.50 Lakh from there Income under

section 80C of the Income Tax Act’1961.

• Potential for Higher Returns.

• Flexibility to invest small amounts through SIP and STP

• Two benefit of Saving Tax and Capital Appreciation.

Disclaimer : Mutual Funds and securities investments are subject to market risk and there can be no assurance or guarantee that the objectives of the Schemes will be achieved.

Past performance may or may not be sustained in the future. Refer to the respective SID and statement of Additional Information before Investment. PPF/NSC rate effective as

applicable for the year 2014-15. Deduction under section 80 C for FD has been started from 2006 only. Interest rate source: RBI & SBI

ELSS

Dividend

Payout Option

Reinvestment Option

Growth

Disclaimer : Mutual Funds and securities investments are subject to market risk and there can be no assurance or guarantee that the objectives of the Schemes will be achieved.

Past performance may or may not be sustained in the future. Refer to the respective SID and statement of Additional Information before Investment. PPF/NSC rate effective as

applicable for the year 2014-15. Deduction under section 80 C for FD has been started from 2006 only. Interest rate source: RBI & SBI

• Growth Plan: Investors don’t earn any dividend during the time they hold the

fund. At the time of exit they get a lump sum amount depending on the prevailing

Net Asset value (NAV) of the scheme at the end of the tenure of the scheme.

Dividend Payout Plan: The Income/Profit earned by the fund is distributed

among the investors. The dividend which the investor earns is not taxable.

Dividend Reinvestment Plan: The dividend declared by this scheme is

reinvested at the prevailing NAV on the day of dividend declaration. The investors

is then liable to get the additional tax benefits on the reinvested dividend amount.

Disclaimer : Mutual Funds and securities investments are subject to market risk and there can be no assurance or guarantee that the objectives of the Schemes will be achieved.

Past performance may or may not be sustained in the future. Refer to the respective SID and statement of Additional Information before Investment. PPF/NSC rate effective as

applicable for the year 2014-15. Deduction under section 80 C for FD has been started from 2006 only. Interest rate source: RBI & SBI

Note: There can also be downside in case of ELSS.

Instruments ELSS PPF BANK FD

Lock in period 3 years 15 years 5 years

Gains Tax Free Not Available Not Available

Dividends/Interest Tax Free Tax Free Taxable

Market Linked Returns Yes No No

SIP/ STP Facility Available Not Available Not Available

Risk Factor High No No

Return High Low Low

Disclaimer : Mutual Funds and securities investments are subject to market risk and there can be no assurance or guarantee that the objectives of the Schemes will be achieved.

Past performance may or may not be sustained in the future. Refer to the respective SID and statement of Additional Information before Investment. PPF/NSC rate effective as

applicable for the year 2014-15. Deduction under section 80 C for FD has been started from 2006 only. Interest rate source: RBI & SBI

Scheme Name ELSS Tax Saving FD PPF

Installment Amount (Every Year) 1,50,000 1,50,000 1,50,000

Number of Installments (in Year) 15 15 15

Total Amount Invested 22.50 Lakhs 22.50 Lakhs 22.50 Lakhs

Fund Value as on (March-2014)

Approx.1.17 Crs 47 Lakhs 47 Lakhs

CAGR (%) 18.96% 8.70% 8.70%

Amount (in Rs.)

Disclaimer : Mutual Funds and securities investments are subject to market risk and there can be no assurance or guarantee that the objectives of the Schemes will be achieved.

Past performance may or may not be sustained in the future. Refer to the respective SID and statement of Additional Information before Investment. PPF/NSC rate effective as

applicable for the year 2014-15. Deduction under section 80 C for FD has been started from 2006 only. Interest rate source: RBI & SBI

Particulars Without ELSS/80C

Tax Saving Investment

With ELSS/80C

Tax Saving Investment

Gross Total Income Rs.7,50,000 Rs.7,50,000

Invested under Section 80C Nil Rs.1,50,000

Net Total Income Rs. 7,50,000 Rs. 6,00,000

Tax on Net Total Income Rs.75,000 * Rs. 45,000 *

Tax Saved on Investment Nil Rs. 30,000

What’s the impact on Tax when you invest in ELSS and on the other side ignore investing in ELSS!

* Tax on Net Total Income is excluding cess @ 3%.

ELSSDisclaimer : Mutual Funds and securities investments are subject to market risk and there can be no assurance or guarantee that the objectives of the Schemes will be achieved.

Past performance may or may not be sustained in the future. Refer to the respective SID and statement of Additional Information before Investment. PPF/NSC rate effective as

applicable for the year 2014-15. Deduction under section 80 C for FD has been started from 2006 only. Interest rate source: RBI & SBI

To invest in ElSS, investors need to comply with Know Your Customer (KYC)regulations.

Once the KYC is verified, the investors has to approach their Asset ManagementCompany (AMC) to invest in ELSS. Here the investor has to fill the ELSS subscription,which has to be duly signed by him, along with the required documents.

The subscription form along with the investment amount cheque should be submittedat the AMC.

In case of SIP an additional form has to be submitted where the investor has to select adate on which the amount for SIP investment will be deducted form his account on thedate of every month until further notice to the investor.

Disclaimer : Mutual Funds and securities investments are subject to market risk and there can be no assurance or guarantee that the objectives of the Schemes will be achieved.

Past performance may or may not be sustained in the future. Refer to the respective SID and statement of Additional Information before Investment. PPF/NSC rate effective as

applicable for the year 2014-15. Deduction under section 80 C for FD has been started from 2006 only. Interest rate source: RBI & SBI

Purely from a tax management perspective, ELSS investment stands out as a

preferred destination.

Most efficient Tax Saving Scheme.

Provides Long-term Investing discipline.

Serves the purpose of both Investing Money and Saving Tax .

Disclaimer : Mutual Funds and securities investments are subject to market risk and there can be no assurance or guarantee that the objectives of the Schemes will be achieved.

Past performance may or may not be sustained in the future. Refer to the respective SID and statement of Additional Information before Investment. PPF/NSC rate effective as

applicable for the year 2014-15. Deduction under section 80 C for FD has been started from 2006 only. Interest rate source: RBI & SBI

Latin Manharlal Securities Pvt. Ltd.Viraj, 6th Floor, 124, S.V. Road, Above HDFC Bank , Khar (w), Mumbai- 400 052.

www.latinmanharlal.com Contact : 022- 40350101/ 40350187