GET DUAL BENEFITS OF

WEALTH CREATION AND `

ELSS
TAX SAVING WITH

` ` `
Invest `1.5 Lacs in ELSS
under section 80C &

Save Tax Upto

`46,800/-*
*For F.Y. 2020-21; for Individual who opts
for old tax regime & falls under the
highest tax bracket

HIGHER TAX STABILITY IN TERMS LOWER LOCK-IN COST

ADJUSTED RETURN
As returns are market linked, ELSS
has potential to deliver higher tax
adjusted returns than traditional
tax saving options.
OF EXIT OF FUNDS
Since there is a lock- in period of 3
years, the fund manager has the
opportunity to invest the funds for
long term as he does not have to
worry about sudden redemption
pressure.
PERIOD AVERAGING
In comparison to the various other Investment in ELSS through SIP
investment avenues under section route helps in averaging out the
80C of the Income tax act, ELSS has cost of purchase.
the shortest lock-in period of 3
years.

Post Office
Particulars PPF NSC Tax Saving FDs ELSS
Time Deposits

Lock-In Period (Yrs.) 15 5 5 5 3

Potential to deliver higher

Rate of Interest (%) 7.10% 6.80% 5.40%* 6.70%
returns as it is linked to market

Rates Applicable From 1-April-2020 1-April-2020 1-April-2020 --

With Effect From
Rates Applicable Till 08-Jan-21 --
29-Jan-2021 29-Jan-2021 29-Jan-2021

Compounding Yearly Yearly Quarterly Quarterly --

Taxable Taxable Taxable Capital Gains are$^#

Taxation of Returns Tax Free
as per slab as per slab as per slab Taxable @ 10%

* Rate offered by SBI Tax Saving Scheme FD
$ Finance Bill, 2018 proposes levy of income-tax at the rate of
10% (without indexation benefit) on long-term capital gains
exceeding `1 lakh from equity shares and equity mutual funds,
provided transfer of such shares/units is subject to STT.
# From FY 2020-21, Dividend in the hands of unit holder is
taxable as per applicable income slab rate. Such dividend
received will attract TDS at 10%. For Individual, TDS will be
applicable on entire dividend if it exceeds `5000 in a financial
year. For FY 2020-21, the TDS has been reduced to 7.5%.
^ In case of the long term capital asset acquired before 1ˢᵗ Feb
2018, cost of acquisition shall be deemed to be the higher of –
Actual cost of acquisition of such asset
Fair market value of such asset as on 31ˢᵗ Jan 2018

www.prudentcorporate.com www.fundzbazar.com
Consider an example, where investor A has chosen to invest `1.50 Lac every year in PPF since ELSS Vs. PPF 197.17
200
1ˢᵗ April 2001 till 1ˢᵗ April 2020 whereas investor B has chosen the ELSS route. Investor B has
180
also invested `1.50 Lac every year for the same period.
160
Let us see how investments made by both the investors A & B from 1ˢᵗ April 2001 to 1ˢᵗ April 140
2020 have fared in these years. The graph shows the wealth created by investor A and investor

(in ` Lacs)
120
B since 1ˢᵗ April 2001. Investor A, who chose PPF has been able to build a wealth of `74.38 Lacs,
100
which is 2.48 times the investment of `30 Lacs. On the other side, investor B who chose the
74.38
ELSS route has been able to build a whopping wealth of `197.17 Lacs, which is 6.57 times the 80
investment of `30 Lacs. 60

40 30
PPF interest Rates Over Time
20
PERIOD Rate of PERIOD Rate of
Interest Interest 0
Invested Amt. PPF ELSS
15.01.2000 to 28.02.2001 11.00% 01.10.2016 to 31.03.2017 8.00%
Time Invst. Invst. Per Invst. Till Rate of Current
01.03.2001 to 28.02.2002 9.50% 01.04.2017 to 30.06.2017 7.90% Horizon Made in Annum (`) Date Return Value
01.03.2002 to 28.02.2003 9.00% 01.07.2017 to 31.12.2017 7.80% Refer the
1ˢᵗ Apr 2001 PPF 1,50,000 `30 Lacs PPF interest `74.38 Lacs
01.03.2003 to 30.11.2011 8.00% 01.01.2018 to 30.09.2018 7.60% to rate table
01.12.2011 to 31.03.2012 8.60% 01.10.2018 to 30.06.2019 8.00% 29ᵗʰ Jan 2021 ELSS 1,50,000 `30 Lacs 15.77* `197.17 Lacs
01.04.2012 to 31.03.2013 8.80% 01.07.2019 to 31.03.2020 7.90%
* For calculation purpose, we have taken only those schemes which have completed
01.04.2013 to 31.03.2016 8.70% 01-04.2020 to 29.01.2021 7.10% atleast 20 years as on 29ᵗʰ Jan 2021. 15.77% is the average CAGR return delivered by
01.04.2016 to 30.09.2016 8.10% these 14 schemes since 1ˢᵗ April 2001.

Returns Comparison between ELSS Schemes & PPF (Valuation Date : 29ᵗʰ January 2021)

The below table shows the value of `1.5 Lac invested in PPF, Sensex and various ELSS Schemes as on 1ˢᵗ April every year. Note: Amount assumed `1.5 Lac in PPF & ELSS.
CAPITAL INVESTED (`)
1-Apr-20 1-Apr-19 1-Apr-18 1-Apr-16 1-Apr-14 1-Apr-11 1-Apr-09 1-Apr-06 1-Apr-01

Scheme Name 29-Jan-21 29-Jan-21 29-Jan-21 29-Jan-21 29-Jan-21 29-Jan-21 29-Jan-21 29-Jan-21 29-Jan-21
1.50 Lacs 3.00 Lacs 4.50 Lacs 7.50 Lacs 10.50 Lacs 15.00 Lacs 18.00 Lacs 22.50 Lacs 30.00 Lacs
RETURNS GENERATED FROM VARIOUS ELSS SCHEMES
Aditya Birla Sun Life Tax Relief 96 2,22,628 3,90,478 5,62,124 10,20,010 16,48,381 31,23,464 46,07,176 65,91,041 195,95,034
Axis Long Term Equity Fund 2,25,673 4,16,630 6,20,678 11,49,986 18,58,024 37,89,690 – – –
BNP Paribas Long Term Equity Fund 2,30,525 4,21,064 6,18,938 10,96,596 17,03,787 31,76,029 46,86,891 64,06,129 –
Canara Robeco Equity Tax Saver Fund 2,37,421 4,18,942 6,21,257 11,55,855 18,25,293 33,00,625 50,56,845 80,47,345 235,62,217
DSP Tax Saver Fund 2,48,324 4,31,947 6,29,470 11,30,040 18,18,308 34,06,967 50,93,736 – –
Franklin India Taxshield 2,51,909 4,18,281 5,97,237 10,25,065 15,92,309 29,03,533 43,81,164 66,47,535 220,55,191
HDFC Taxsaver 2,38,026 3,91,379 5,53,637 9,57,125 14,54,676 25,31,311 37,59,434 55,46,699 224,27,723
HSBC Tax Saver Equity Fund 2,36,044 4,04,089 5,76,447 10,15,467 15,77,810 28,64,048 41,70,762 – –
ICICI Prudential Long Term Equity Fund 2,47,463 4,20,480 6,08,299 10,69,438 16,62,577 30,63,805 47,20,873 69,82,748 280,90,925
IDFC Tax Advantage (ELSS) Fund 2,71,464 4,44,533 6,18,232 11,05,258 17,28,435 32,14,499 47,12,218 – –
Invesco India Tax Plan 2,39,802 4,23,177 6,20,650 11,31,515 18,01,431 33,89,887 51,69,803 – –
Kotak Tax Saver Fund 2,41,152 4,24,676 6,25,286 11,18,309 17,75,002 31,13,402 44,54,311 61,60,548 –
L&T Tax Advantage Fund 2,40,528 4,09,198 5,75,555 10,25,170 16,09,597 28,60,746 42,51,860 64,95,534 –
Mirae Asset Tax Saver Fund 2,59,867 4,55,080 6,72,856 12,83,505 – – – – –
Motilal Oswal Long Term Equity Fund 2,32,717 4,10,184 5,80,343 10,72,387 – – – – –
Nippon India Tax Saver (ELSS) Fund 2,33,897 3,79,990 5,19,126 8,59,684 13,17,899 24,71,891 37,48,133 55,93,994 –
Principal Tax Savings Fund 2,49,264 4,23,674 6,00,375 10,84,123 17,16,761 31,97,536 45,85,743 61,94,849 185,57,602
SBI Long Term Equity Fund 2,51,875 4,27,741 6,13,186 10,57,722 16,09,407 28,67,218 41,19,082 59,29,779 278,10,106
Sundaram Diversified Equity 2,40,260 4,03,899 5,70,130 9,94,211 15,44,987 26,95,256 38,28,171 56,39,513 209,53,590
Tata India Tax Savings Fund - Reg 2,39,093 4,12,269 5,96,919 10,78,273 17,36,993 32,30,329 47,97,753 68,96,791 216,23,796
Taurus Taxshield 2,30,468 4,00,211 5,80,250 10,70,141 16,49,612 28,28,236 40,65,873 62,28,583 171,88,960
UTI Long Term Equity Fund (Tax Saving) 2,49,604 4,36,504 6,33,070 11,13,984 17,06,349 29,59,044 41,59,081 57,85,068 149,65,534
S&P BSE Sensex 2,45,632 4,24,241 6,33,015 11,39,891 16,94,877 28,17,645 39,11,220 55,13,303 139,57,710
Maximum 2,71,464 4,55,080 6,72,856 12,83,505 18,58,024 37,89,690 51,69,803 80,47,345 280,90,925
Minimum 2,22,628 3,79,990 5,19,126 8,59,684 13,17,899 24,71,891 37,48,133 55,46,699 149,65,534
Average 2,41,728 4,16,565 5,99,730 10,73,357 16,66,882 30,49,376 44,40,469 63,43,077 215,30,062
PPF Calculated at actual rates 1,58,870 3,30,365 5,15,236 9,29,766 14,18,261 23,21,374 30,52,902 43,84,821 74,38,489

(Past performance may or may not sustain in future)

Contact Details:
Disclaimer: The information contained in this report has been obtained from various sources. While utmost care has
been taken for the preparation of this report, we do not guarantee its validity or completeness. Neither any information
nor any opinions expressed constitute an offer, or an invitation to make an offer to buy or sell any fund. Investors should
take financial advice with respect to the suitability of investing their monies in any fund discussed in this report.

Mutual fund investment are subject to market risk. Please read Scheme Information Document and Statement of
Additional Information carefully before investing.

www.prudentcorporate.com www.fundzbazar.com