Equity linked savings scheme (ELSS) - PowerPoint PPT Presentation

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Equity linked savings scheme (ELSS)

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Equity linked savings scheme, ELSS, aim at harnessing the benefits of investing in equity in wealth creation while also providing tax benefits u/s 80C of the Indian Income Tax Act, 1961. By investing in ELSS, you can aim to save tax and create wealth over a long term investment horizon. – PowerPoint PPT presentation

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Title: Equity linked savings scheme (ELSS)


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ICICI Prudential Mutual Fund
Equity mutual fund
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ICICI Prudential Mutual Fund
Equity mutual fund
WHAT ARE EQUITY LINKED SAVINGS SCHEMES
(ELSS)? While tax planning may seem to be a
difficult process, Mutual Funds offer you a
simple way to get tax benefits, while aiming to
make the most of the potential of the equity
markets. An Equity Linked Savings Scheme (ELSS)
is an open-ended Equity Mutual Fund that doesn't
just help you save tax, but also gives you an
opportunity to grow your money. It qualifies for
tax exemptions under section (u/s) 80C of the
Indian Income Tax Act,1961 .
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ICICI Prudential Mutual Fund
Equity mutual fund
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ICICI Prudential Mutual Fund
Equity mutual fund
  • Along with the tax deductions, an ELSS offers you
    the following benefits
  • An opportunity to grow your money by investing in
    the equity market.
  • Long-term capital gains from these funds are tax
    free in your hands.
  • The lock-in period is only 3 years.
  • You can also opt for a Dividend Payout option,
    thereby realizing some potential gain during the
    lock-in period.
  • You can invest through a Systematic Investment
    Plan and bring discipline to your tax planning.
  • However, it must be noted that any dividend
    payment will be from the NAV of the Scheme and
    therefore the NAV of the scheme will fall to the
    extent of dividend payment. Also dividend payment
    is subject to availability of distributable
    surplus and approval from Trustees.

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ICICI Prudential Mutual Fund
Equity mutual fund
Points to remember while choosing an appropriate
ELSS You must always remember to do thorough
research when you invest in an ELSS fund. You
must look at the long term performance of the
fund before putting your money in it. Also
remember to look at the fund details like the
fund managers investment approach, portfolio of
the fund, the expense ratio of the fund and how
volatile the fund has been in the past.
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ICICI Prudential Mutual Fund
Equity mutual fund
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ICICI Prudential Mutual Fund
Equity mutual fund
When you invest in certain schemes like ELSS,
Public Provident Fund, certain Bank Fixed
Deposits etc. you can claim up to Rs.1,50,000 as
a deduction from your gross total income in a
financial year under Section 80C of Income Tax
Act, 1961. The Table below will help further
explain how this works
Particulars Without Tax Saving Investments u/s 80C With Tax Saving Investments u/s 80C
Gross Total Income Rs.7,50,000 Rs.7,50,000
Exemption u/s 80C Nil Rs.1,50,000
Total Income Rs.7,50,000 Rs.6,00,000
Tax on Total Income Rs.75,000 Rs.45,000
Tax saved Nil Rs.30,000
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ICICI Prudential Mutual Fund
Equity mutual fund
llustration of Tax exemption for an individual
less than 60 years in receipt of salary income
for the assessment year 2015-16 (FY 2014-2015).
Along with the tax deductions, an ELSS offers you
the opportunity to grow your money by investing
in the equity market. Long-term capital gains
from these funds are tax free in your hands and
the lock-in period is only 3 years. Furthermore,
you can also opt for a Dividend Payout option,
thereby realizing some potential gain during the
lock-in period, and also choose to invest through
a Systematic Investment Plan and bring discipline
to your tax planning.
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ICICI Prudential Mutual Fund
Equity mutual fund
For more information you can contact us on
Email enquiry_at_icicipruamc.com Website
http//www.icicipruamc.com/
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ICICI Prudential Mutual Fund
Equity mutual fund
Thank you
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