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Equity Linked Savings Scheme


An ELSS (Equity Linked Savings Scheme) is a mutual fund scheme that invests in equity & equity-related securities.Investors get the benefit of Income Tax saving while investing in ELSS, – PowerPoint PPT presentation

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Title: Equity Linked Savings Scheme

Can I really save tax and aim to earn more at the
same time?
Equity Linked Savings Scheme
Long term investment always give better returns.
What is Equity Linked Savings Scheme (ELSS)
  • ELSS, an acronym for Equity Linked Savings
    Scheme, which is a tax saving mutual fund scheme
  • By investing in ELSS, investors get the benefit
    of Income Tax saving
  • It is basically a diversified equity scheme,
    which has a 3-year lock-in period. These are
    linked to Stock Market and are subject to market
    fluctuations, hence the returns depend on stock
    selection, which are generally higher than
    traditional tax saving schemes.

Benefits of ELSS
  • Tax free Dividend
  • Tax free long term capital gains
  • Shorter lock-in period of 3 years
  • Full tax deduction of Rs. 1 lakh under section
  • Potential for higher returns
  • An investor has the option of investing in
    monthly equity linked savings schemes with a
    minimum investment of Rs 500.
  • Investors in ELSS have the advantage of investing
    through Systematic Investment Plan.
  • ELSS gives you the two-in-one advantage of saving
    tax and wealth-building.

Classification of ELSS
Classification Contd.. Growth Plan Under growth
plan, investors do not earn any dividend during
the time they hold the fund. At the time of exit
they get a lump sum amount depending on the-then
prevailing NAV of the scheme. Dividend Payout
Plan Under dividend 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 If
an investor chooses this scheme, the dividend
declared by this scheme is reinvested at the
prevailing NAV on the day of dividend
declaration. The investor is then liable to get
additional tax benefits on the reinvested
dividend amount.
How to invest in ELSS
  • To invest in ELSS, investors need to comply with
    Know Your Customer (KYC) regulations wherein they
    have to provide their PAN card no. in order to
    avoid financial fraud.
  • Once the KYC is verified, the investor has to
    approach their Asset Management company (AMC) to
    invest in ELSS. Here the investor has to fill the
    ELSS subscription form, which has to be duly
    signed by him, along with an attached copy of PAN
  • The Subscription form along with the investment
    amount cheque should be submitted at the AMC.
  • In case of Systematic Investment Plan(SIP) an
    additional form has to be submitted where the
    investor has to select a date on which the amount
    for SIP investment will be deducted from his
    account on the date of every month until further
    notice to the investor

Thank you
  • If you want to invest in Reliance Tax Saving
    (ELSS) Fund.
  • Call us on our Toll Free No.
    1800-300-11111 Tel No. 022 30301111
  • Click to connect with us on our social
  • https//plus.google.com/108818380526780189699/po
  • http//twitter.com/Reliance_MF
  • http//www.facebook.com/RelianceMutualFund
  • http//www.linkedin.com/company/2275601
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