ELSS Could be Your Chance To Save Tax & Create Wealth - PowerPoint PPT Presentation

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ELSS Could be Your Chance To Save Tax & Create Wealth


The first month of 2021 is already over and the tax saving period will soon end. Are you considering ELSS funds to save tax? Checkout why choosing ELSS funds is not just easy but also a smart option with a dual benefit of tax saving & wealth creation. Get answers to questions like: What is ELSS and how can it help you save tax & create wealth simultaneously? Is 2021 the year for equity & ELSS investments? What gives ELSS funds an edge over other tax saving instruments? – PowerPoint PPT presentation

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Title: ELSS Could be Your Chance To Save Tax & Create Wealth

ELSS Could be Your Chance To Save Tax Create

Overview Indian Economy
Budget 2021-22 Full throttle Fiscal expansion
to GDP 2019-20 Actuals 2020-21 Revised Estimates 2021-22Budgeted
Fiscal Deficit 4.59 9.49 6.76
Capital Expenditure 1.65 2.25 2.49
Revenue Expenditure 11.65 15.46 13.14
  • The govt. has set itself a fiscal deficit target
    of 6.8 in FY22
  • Immediate concern was the vaccine and the health
    infrastructure. That has been addressed with
    Healthcare and Sanitation spend increasing by
    136 on a y-o-y basis
  • There have been some sector specific changes like
    increase in FDI limit in Insurance to 74 from
    49 scrappage policy for Autos, which augurs
    well for respective sectors  
  • On rural, there havent been any major changes in
    the allocations apart from minor enhancements in
    certain schemes
  • Government has set an ambitious divestment target
    of Rs 1,750 bn, which includes planned IPO of LIC
    and privatization of certain public sector
    financial institutions
  • Higher borrowings (even after adjusting for
    reclassification of borrowings of Food
    Corporation of India) by the government can crowd
    out the private sector demand for loans, until
    unless, foreign flows in debts come to their

Down, Down Downbut Glimmers Of Hope With Newest
Reading Showcasing Indian Economys Resilience
Source Bloomberg, as of September 30, 2020.
Note The numbers in red circle are from a
changed data series starting Jan 2015. While a
superior series, there is no comparable number
to equate the New with the Old. Most
economists deduct 0 to 1.5 from the New to
equate to the Old. Or you need to add 0 to
1.5 to equate the old to the New.
Economic Activity vs pre-COVID levels
Source CMIE, Bloomberg, QAMC Research
Economic activity in some sectors at 90 and in
some sectors above pre-COVID levels
Indians Still Consuming The Hungry Consumers!
Year (March end) 2-wheelers (Domestic sales Mn units) Passenger Vehicles (Domestic sales Mn units) Refrigerators (Production Mn units) Cement (mn tn) Home loans outstanding (Rs. bn)
2008 8,064,903 225 1.55 6.14 174
2009 8,439,786 392 1.55 6.72 187
2010 10,511,009 584 1.95 8.00 207
2011 13,302,335 812 2.50 8.72 216
2012 15,384,261 919 2.63 9.91 230
2013 15,753,563 868 2.67 11.12 248
2014 16,890,778 905 2.50 10.65 256
2015 18,433,027 970 2.60 11.95 270
2016 18,938,727 1,034 2.79 11.86 283
2017 19,929,958 1,170 3.05 13.05 280
2018 23,007,691 1,183 3.29 13.50 298
2019 24,460,688 1,162 3.38 15.64 337
2020 20,936,201 1,158 2.73 15.0 334
2021 YTD 11,442,365 1,152 1.41 4.0 149
CAGR (2008 to 2020) 10.0 17.8 5.8 9.3 6.7
2021 YTD data, Two-wheeler sales data as on
Nov20, Passenger Vehicle sales Data as on
November 2020 Refrigerator data as on October
2020, Cement sales data as on November' 20,
Housing loans data as on November 2020, Latest
cell phone connections data as on Oct '20
Source 2 wheeler passenger vehicle and Cement
CMIE database refrigerator production data
CMIE (IIP ) database, home loans outstanding
RBI Data on Sectoral deployment of bank credit
(September 2020). Annualized Returns.
If The World Slips Sideways, India Will Grow As
It Has Over The Past 39 Years
Real GDP growth rate across 10 governments has
been 6.3 p.a. over the last 39 years
Source RBI and www.parliamentofindia.nic.in as
of September 2020. Note The number in red
rectangle is from a changed data series starting
Jan 2015. While a superior series, there is no
comparable number to equate the New with the
Old. Most economists deduct 0 to 1.5 from the
New to equate to the Old therefore under
Modi, the GDP has been at 5.9 at best matching
the 5.6 under the BJP-led coalition government
of Vajpayee that resulted in a rout for the BJP
at the time of the next election in 2004! Please
note that data used for World GDP for 2017 is a
median Estimate since World Bank data is not yet
available and India GDP data is governments
second advance estimate released at the end of
Covid 19 No Resurgence After First Wave,
Vaccination Drive Starts
  April 30 2020 June 30 2020 Sep 30 2020 Dec 31 2020
Daily Tests 72,453 217,931 1,426,052 1,127,244
Daily new infections 1,901 18,522 80,472 21,822
Cumulative Cases 33,610 566,840 6,225,763 10,266,674
Of which -Recovered 24,162 334,822 5,187,825 9,860,280
Deaths- Cumulative 1,075 16,893 97,497 148,738
  • There are no signs of a second wave
  • Government has approved Oxford-AstraZeneca
    (manufactured by Serum Institute India) Bharat
    Biotechs (Local player) Vaccines for India
  • Vaccination started from Jan 16, 2021
  • Government plans to vaccinate 300 mln people by
    August 2021

Source John Hopkins University
Daily new infections have shown a sharp
deceleration, so far there are no signs of a
second wave
Risk to the Recovery
  • Emergence of a Second Wave of Covid Cases could
    derail economic recovery
  • Job Losses amongst salaried employees and Rising
    Inflation may impact consumer discretionary spend
  • Real stress in the Banking sector has yet to be
    revealed as recognition of bad loans has been
    deferred after a Supreme court order
  • With fiscal policy in the expansion mode,
    inflation is the real worry. The risk of higher
    interest rates has increased


Overview Indian Stock Markets
Spiking PER Overstates Valuation Given The Prior
Quarters Gap Down
Source Bloomberg. Data as on January 31st 2021.
Past Performance may or may not sustained in
Indian Corporates Have Showcased Strong
Flexibility on Costs
  Q1 FY21 Q2FY21 Q3FY21
Revenue 35 56 54
EBIDTA 48 64 66
PAT 55 70 68
Source Q Research, Citigroup Based on results
which have come by 31st January 2021
Percentage of companies positively surprising
sell side expectations in quarters most impacted
by pandemic
Estimates Have Adjusted for COVID Still
Data as of January 2021 Source Bloomberg

Quantum Tax Saving Fund
What to look for in an ELSS Scheme?
  • Stability of the Investment team Consistency in
  • Long term track record across Market Cycle
  • Prefer a fund with lower turnover ratio (lower
    churn) so as to reflect alignment of Fund
    Managers approach and your investment horizon
  • Portfolio should have good quality companies
    across Large Caps Mid Caps depending upon where
    value lies

Quantum Tax Saving Fund ELSS Scheme following
Value Strategy
  • Quantum Tax Saving Fund Invests in Quality Midcap
    Large Cap companies with a minimum stock
    liquidity filter creates a portfolio for long
    term capital appreciation. Portfolio is similar
    to QLTEVF
  • The fund has a three year lock-in which is one of
    the lowest amongst other tax saving instruments
  • A three year lock-in ensures an enforced
    discipline amongst the investor. Equity is an
    investment class only in the long term in the
    near term its speculative
  • Being an ELSS scheme it comes with an advantage
    of building wealth and saving taxes
  • Well suited for long term goals such as children
    education retirement planning

Our Investment Criteria Value
  • Evaluate
  • The Business of the company
  • The environment in which it operates
  • The management and their long-term goals
  • Can the financials support the long-term goals?
  • Analyze
  • The stock price of the company based on
    fundamentals relative to its peer group, its
    history, and the market
  • PER, PCF, P/BV, Div Yld, EV/EBITDA
  • Buy
  • Current price is generally 40 lower than our
    estimate of long-term value (in case of first
    time buy)
  • Sell
  • Current price is gt our estimate of long-term
  • Better Investment Alternatives
  • Changed view of management, Changed view of

Our Macro-Assumptions The 4 Inputs To Our
Bottom-up Stock Selection Process
Our estimate Consensus Current readings Comments
GDP, long-term 5.5 to 6.0 (Old Series) 6.5 -7.5 New series remains confusing policy makers will grapple with GDP data
Inflation 4.0 to 4.5 4.5 to 5.0 4.6 Inflation above  RBI comfort level.  It should trend down 4.5-5.0  in the long term
10-year bond Long term 6.5 to 7.0 6.0-6.5 6.1 Inflation remain the key risk for further rate cuts
FX rates /-2 (INR /USD in a 75-80 band) /- 5 INR/USD73 lower oil prices are positive. Sudden withdrawal of portfolio flows remain key risk
Source Quantum AMC estimates, as of January 2021
Bottom-Up Stock Selection Process
Clients get best of bottom up ideas with a risk
control measurement for each sector
25 to 40 stocks
Portfolio of stocks with broad exposure to
various sectors. Reflecting three broad themes
domestic consumption, exports and infrastructure
201 stocks
Regular meeting to review ideas and approve value
stocks for the database
Analysts study stocks in their sector- in India
and globally
Number of stocks mentioned are as per current
average trading volume value criteria. The number
of Stock in trading volume criteria, and in
portfolio will be changed from time to time based
on Investment Strategy of the scheme.
Portfolio Construction
To research team
No effect on decision
  • Weights assigned to a stock
  • are a function of
  • Reliability of management
  • Quality of earnings
  • Stability of earnings
  • Upside Potential
  • Alternatives/Cash

Indifferent guided by Research
Investment Rules
Our portfolio turnover is typically 20,
suggesting a 5 year holding period. Please refer
Scheme Information Document of the Scheme for
complete Investment Strategy
Portfolio Positioning
  • Portfolio allocation towards cement, steel,
    power capital goods utilities will benefit
    from a capex driven recovery cycle as envisaged
    by the Budget
  • Monsoon has been good for second consecutive
    year. Some of the portfolio stocks are well
    positioned to benefit from strong agri rural
  • High quality stocks available at reasonable
    valuations were added to the portfolio in the
    correction in February March 2020
  • Portfolio stocks look comfortable after stress
    test - have strong balance-sheet or strong
    parentage to last the downturn
  • Existing cash holding will be used to add new
    names in case of correction

Performance Across the Market Cycles (Mar 2006
Jan 2021 Quantum Tax Saving Fund Direct Plan
Growth Option)
Past performance may or may not be sustained in
future. This graph should be reviewed in
conjunction with detailed performance of the
scheme provided on slide number 25 Source
There have been years when equity markets had a
brilliant run, years when only bonds were
dependable, and years when gold shined the
brightest, and these periods did not typically
Ignore Asset Allocation at your own Peril
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Sensex 49 Sensex 49 Gold 26 Sensex 83 Gold 23 Gold 32 Sensex 28 Sensex 11 Sensex 32 Bonds 9 Bonds 13 Sensex 30 Gold 8 Gold 16 Gold 28
Gold 20 Gold 16 Bonds 9 Gold 24 Sensex 19 Bonds 7 Gold 12 Bonds 4 Bonds 14 Sensex -4 Gold 11 Gold 5 Sensex 7 Sensex 14 Bonds 17
Bonds 4 Bonds 7 Sensex -52 Bonds 4 Bonds 5 Sensex -24 Bonds 9 Gold -5 Gold -8 Gold -7 Sensex 3 Bonds 5 Bonds 6 Bonds 11 Sensex 12
Past performance may or may not sustained in
future The chart ranks the best to worst
performing indexes per calendar year from top to
bottom Data as of December 2020 Past performance
may or may not be sustained in future. Based on
SP BSE Sensex Domestic Gold prices and CRISIL
Composite Bond Fund Index Source Bloomberg
Imagine someone holding an all equity portfolio
in 2008, or holding none in the equity rally that
2021- A Simple Asset Allocation Strategy to Deal
with Market Cycles
Keep 6-24 months of expenses in Liquid Fund, Bank
Fixed Deposit so that It can be withdrawn
Please note that the above is the suggested fund
allocation only and is not to be considered as
investment advice / recommendation, please seek
independent professional advice and arrive at an
informed investment decision before making any
Performance of Quantum Tax Saving Fund Direct
Plan Growth Option The Scheme is Managed by Mr.
Sorbh Gupta since October 1, 2016.
Period   Current Value of 10,000 Invested at the beginning of a given period Current Value of 10,000 Invested at the beginning of a given period Current Value of 10,000 Invested at the beginning of a given period
Period   Benchmark Additional Benchmark Benchmark Additional Benchmark
Period   Scheme Returns () SP BSE 200 TRI () SP BSE Sensex TRI () Scheme (Rs) SP BSE 200 TRI (Rs) SP BSE Sensex TRI (Rs)
1 year 16.54 16.51 15.09 11,650 11,646 11,505
3 years 3.61 7.75 10.08 11,121 12,506 13,336
5 years 10.64 14.11 14.65 16,587 19,360 19,826
7 years 13.00 14.73 13.81 23,532 26,168 24,736
10 years 10.89 11.35 11.24 28,121 29,301 29,035
Since Inception (23rd Dec 2008) 16.12 15.83 15.36 61,090 59,300 56,444
Past performance may or may not be sustained in
the future. Data as 31st January 2021 Load is not
taken into consideration in scheme returns
calculation. Returns are net of Total Expenses
and calculated on the basis of Compounded
Annualized Growth Rate (CAGR) with effect from
February 01, 2020 benchmark has been changed from
SP Sensex TRI to SP BSE 200 TRI Mr. Sorbh Gupta
manages 2 schemes of Quantum Mutual Fund. For
performance of other Schemes Managed by Mr. Sorbh
Gupta please see slide number 26.
Other Schemes managed by Mr. Sorbh Gupta
Quantum Long Term Equity Value Fund Mr. Sorbh
Gupta is co -managing the scheme effective from
December 1, 2020. Mr. Nilesh Shetty is
co-managing the scheme effective from March 28,
Period 1 year 1 year 3 years 3 years 5 years 5 years
  Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns () Scheme Returns () Benchmark Returns ()
Quantum Long Term Equity Value FundDirect Plan (Gr) 16.20 16.51 3.64 7.75 10.50 14.11
Past performance may or may not be sustained in
the future. Load is not taken into consideration
in Scheme Return Calculation. Data as of 31st
January, 2021 BSE 200 TRI. Returns are net of
total expenses and are calculated on the basis of
Compounded Annualized Growth Rate (CAGR).
Different Plans shall have different expense
structure. Mr. Sorbh Gupta Mr. Nilesh Shetty
manages 2 schemes of Quantum Mutual Fund.
Product Label
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Disclaimer Terms of Use
The data in this presentation are meant for
general reading purpose only and are not meant to
serve as a professional guide/investment advice
for the readers. This presentation has been
prepared on the basis of publicly available
information, internally developed data and other
sources believed to be reliable. Whilst no action
has been suggested or offered based upon the
information provided herein, due care has been
taken to endeavor that the facts are accurate and
reasonable as on date. Quantum AMC shall make
modifications and alterations to the performance
and related data from time to time as may be
required as per SEBI Mutual Fund Regulations.
Readers are advised to seek independent
professional advice and arrive at an informed
investment decision before making any investment.
None of the Sponsors, the Investment Manager, the
Trustee, their respective Directors, Employees,
Affiliates or Representatives shall be liable for
any direct, indirect, special, incidental,
consequential, punitive or exemplary damages,
including lost profits arising in any way from
the data/information/opinions contained in this
presentation. The Quantum AMC shall make
modifications and alterations to the performance
and related data from time to time as may be
required. Please visit www.QuantumMF.com to
read scheme specific risk factors. Investors in
the Scheme are not being offered a guaranteed or
assured rate of return and there can be no
assurance that the schemes objective will be
achieved and the NAV of the scheme may go up and
down depending upon the factors and forces
affecting securities market. Investment in mutual
fund units involves investment risk such as
trading volumes, settlement risk, liquidity risk,
default risk including possible loss of capital.
Past performance of the sponsor / AMC / Mutual
Fund does not indicate the future performance of
the Scheme. Statutory Details Quantum Mutual
Fund (the Fund) has been constituted as a Trust
under the Indian Trusts Act, 1882. Sponsor
Quantum Advisors Private Limited. (liability of
Sponsor limited to Rs. 1,00,000/-). Trustee
Quantum Trustee Company Private Limited.
Investment Manager Quantum Asset Management
Company Private Limited. The Sponsor, Trustee and
Investment Manager are incorporated under the
Companies Act, 1956. 5th February 2021 Mutual
fund investments are subject to market risks,
read all scheme related documents carefully.
Thank You
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SMILE was born out of our desire to support
credible NGOs and create a steady stream of money
flow for them
Since 2018, Quantum MF investors have supported 7
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SMILE enables Quantum MF investors to contribute
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Funds Q Dynamic Bond Q Multi Asset Q Gold
Savings Q Liquid
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