AMITY UNIVERSITY

Tax Saving Mutual Fund

Schemes
Financial Services

[ The following report gives us the description of three tax saving mutual funds

schemes]

Submitted to: Geetika Chawla

Amity University

Submitted by:
Divya Vishwanadh (A-01)
Sumedha Gupta (A-02)
Shipra Singh (A-06)
Deepshikha Sahu (A-08)
Vijeta Jain (A-31)
BBA + MBA (Dual)

Introduction
There are many schemes which give tax advantage on investments .e.g.:
1. Insurance
2. NSC/KVP
3. Bank fixed deposits of 5 years & above
4. RBI deposit schemes
5. PPF
6. Tax saving schemes of mutual funds
Most of the above schemes give an average return of 7-9 % over long time periods.
Lock-in time also varies from 3-7 years. As per historic data the best returns were given
by tax saving schemes of mutual funds with a lock-in of only 3 years which is the
minimum for a tax saving scheme. Therefore it is suggested that tax saving money
should be invested in Tax saving mutual funds for best returns along with tax benefit on
investment amount as well as on the return on investments i.e. dividends which is
completely tax free. Following tax saving schemes are doing very good performance:
1. HDFC tax saver
2. Prudential ICICI tax saver
3. Franklin India tax shield
4. Birla Equity fund
5. Tata tax saving fund
6. Reliance tax saver (ELSS) fund
7. SBI tax saving fund
A return of 15-20% p.a. should be achieved comfortably in a tax saving scheme of
mutual fund as the funds are invested for a min. period of 3 years i.e. the lock in period.
ELSS, popularly known as Tax Saving Mutual Fund, is a category of Mutual Fund where
a major portion is invested in Equity & Equity related instruments. An investment up to 1
lakh is exempted from income under section 80C, but there is a lock in of 3 years before
you can withdraw. However, there is no upper limit on investments and long term capital
appreciations are tax free. Dividends received are also tax free in the hands of the
investor.

Types of ELSS

1. Growth: Investor does not get any income during the tenure of the investment. He will
get a lump sum amount at the time of redemption or on maturity.
2. Dividend: Investor gets a dividend from the fund house. He has two options:

He can cash on the dividends.

He can opt for dividend re-investment option.

In most funds you have Growth as well as Dividend options which you can choose
depending upon your priorities.
The following report gives us the description of three tax saving mutual funds schemes

1. ICICI Pru Tax Plan (G)

Latest NAV

127.98 (30/08/11)

52-Week High

155.09 (10/11/10)

52-Week Low

122.45 (26/08/11)

Fund Category

Equity: Tax Planning

Type

Open End

Launch Date

August 1999

Risk Grade

Average

Return Grade

Above Average

Net Assets (Cr)

1,323.19 (30/06/11)

Benchmark

S&P CNX 500

Annual Returns
2010

2009

2008

2007

2006

24.11

112.00

-56.03

40.95

26.15

Rank In Category

9/37

1/32

16/29

22/26

17/23

Category Average

18.78

81.79

-55.56

59.25

30.18

Fund Return

Current Stats & Profile

Latest NAV

36.76 (30/08/11)

52-Week High

45.22 (09/11/10)

52-Week Low

35.44 (26/08/11)

Fund Category

Equity: Tax Planning

Type

Open End

Launch Date

December 1999

Risk Grade

Average

Return Grade

Below Average

Net Assets (Cr)

496.47 (30/06/11)

Benchmark

BSE 100

Relative Performance (Fund Vs Category Average

Trailing Returns
As of 30 Aug 2011
Year-to-Date

Fund Return

Category Return

Sensex

S&P CNX Nifty

-14.85

-15.59

-19.96

-19.80

1-Week

0.46

0.57

-0.50

-0.59

1-Month

-6.63

-7.72

-9.79

-10.26

3-Month

-4.62

-6.25

-9.96

-10.11

1-Year

-6.80

-9.51

-8.96

-9.16

2-Year

6.16

6.38

1.54

1.96

3-Year

5.65

7.14

4.07

4.11

5-Year

6.33

8.38

6.96

7.48

Return less than 1-year are absolute and over 1 year are annualised

Annual Returns
2010

2009

2008

2007

2006

Fund Return

17.57

72.88

-54.67

50.92

18.56

Rank In Category

21/37

24/32

13/29

19/26

22/23

Category Average

18.78

81.79

-55.56

59.25

30.18

Sensex

17.43

81.03

-52.45

47.15

46.70

S&P CNX Nifty

17.95

75.76

-51.79

54.77

39.83

Quarterly Returns

Q1

Q2

Q3

Q4

2011

-6.86

-1.42

--

--

2010

2.10

1.15

13.61

0.21

2009

0.52

38.50

18.40

4.88

2008

-26.89

-12.84

-7.74

-22.90

2007

-9.05

14.16

17.71

23.48

2006

14.13

-16.33

13.19

9.68

2005

0.56

8.75

22.03

9.95

2004

1.13

-8.27

14.30

22.12

2003

-4.56

14.63

28.39

31.78

2002

13.72

-1.48

-4.42

10.61

2001

-11.28

-2.19

-19.91

24.16

2000

--

-4.90

-7.56

2.88

Fund Details

VR Category

Equity: Tax Planning

Type

Open End

Load

Entry Load

Nil

Exit Load

Nil

Basics
Min Investment (Rs)

500

Subsequent Investment (Rs)

500

Min Withdrawal (Rs)

--

Min Balance (Rs)

500

Pricing Method

Forward

Purchase Cut-off Time (hrs)

15

Redemption Cut-off Time (hrs)

15

Redemption Time (days)

10

Lock-in

1095 days

Cheque Writing

--

NAV Chart

3) LIC Nomura MF Tax Plan-G

Current Stats & Profile
Latest NAV

26.0668 (30/08/11)

52-Week High

33.0172 (09/11/10)

52-Week Low

24.8573 (26/08/11)

Fund Category

Equity: Tax Planning

Type

Open End

Launch Date

March 1997

Risk Grade

Above Average

Return Grade

Low

Net Assets (Cr)

38.68 (30/06/11)

Benchmark

Sensex

Trailing Returns
As of 30 Aug 2011
Year-to-Date

Fund Return

Category Return

Sensex

S&P CNX Nifty

-18.35

-15.59

-19.96

-19.80

1-Week

0.82

0.57

-0.50

-0.59

1-Month

-8.78

-7.72

-9.79

-10.26

3-Month

-8.26

-6.25

-9.96

-10.11

1-Year

-9.91

-9.51

-8.96

-9.16

2-Year

0.30

6.38

1.54

1.96

3-Year

2.65

7.14

4.07

4.11

5-Year

2.61

8.38

6.96

7.48

Return less than 1-year are absolute and over 1 year are annualised

Annual Returns
2010

2009

2008

2007

2006

Fund Return

15.73

62.17

-56.87

48.76

28.25

Rank In Category

25/37

31/32

18/29

20/26

15/23

Category Average

18.78

81.79

-55.56

59.25

30.18

Sensex

17.43

81.03

-52.45

47.15

46.70

S&P CNX Nifty

17.95

75.76

-51.79

54.77

39.83

Quarterly Returns
Q1

Q2

Q3

Q4

2011

-5.54

-2.96

--

--

2010

-0.77

2.53

12.81

0.83

2009

-1.91

44.49

15.35

-0.80

2008

-32.30

-17.10

-1.79

-21.75

2007

-8.47

11.13

12.49

30.01

2006

21.48

-14.04

10.63

11.02

2005

-1.25

5.06

17.33

1.74

2004

0.16

-11.68

9.68

14.63

2003

-7.79

22.88

33.02

29.50

2002

7.96

2.31

-11.37

15.69

2001

-44.71

-4.14

-2.09

3.35

2000

1.40

-20.23

-7.15

2.59

1999

19.71

4.32

32.89

9.02

1998

7.16

-15.00

4.56

-1.09

1997

--

--

-2.19

-1.73

Fund Details

VR Category

Equity: Tax Planning

Type

Open End

Load

Entry Load

Nil

Exit Load

Nil

Basics

Systematic Investment Plan

Min Investment (Rs)

500

Subsequent Investment (Rs)

100

Min Withdrawal (Rs)

Min Balance

Pricing Method

SIP

Yes

Initial Investment (Rs)

--

Additional Investment (Rs)

100

No of Cheques

--

--

Forward
Note

Purchase Cut-off Time (hrs)

15

Redemption Cut-off Time (hrs)

15

Redemption Time (days)

Lock-in

1095 days

Exit load of 2.25% if units are

redeemed before 1 year.

Cheque Writing

--

Tax Section Applicable

Section 88 (2) (XIII B)

Section 54EA

Section 54EB

Section 54EC

Section 54ED

Section 10(33)

Section 112(1)

Section 94(7)

NAV Chart