ELSSIdeal Investment AvenuesAgenda•About ELSS–Key Differentiation–Advantages•ELSS –Comparison•Why ELSS?•Why Equities?•Why India?•Fund Manager Advantages •Tax Planning•Past Performance•Current NFOs •Summary •About Us –ServicesAbout ELSS•An ELSS (Equity Linked Savings Scheme) is a mutual fund scheme that invests in equity & equity-related securities•ELSS are also eligible investments under section 80Cof Income Tax Act 1961, where the investments up to Rs.1 Lac* is eligible for deduction from your total income. Thus you can easily save up to Rs.33,660/-in taxes by investing in ELSS. •ELSS have a lock-in period of three years. This allows the investors to benefit from the long term growth potential of equities. * For Financial Year 2006-07 ELSS –Key DifferentiationELSS is the only investment product that offers ….Twin Advantages•Equity Returns •Tax BenefitsELSS –A ComparisonInstrumentExpected ReturnsLock-In PeriodNational Savings Certificate -NSC8.16%6 yearsPublic Provident Fund -PPF8.50%Up to 15 years Mutual Fund ELSSAround 15%-20%3 yearsInvestment1 LacEnd Value of Investment in Rs. Lac after -YearsAvenueReturns368101520NSC8.16%1.271.601.872.193.244.80PPF8.50%1.281.631.922.263.405.11ELSS15.00%1.522.313.064.058.1416.37Mutual Fund ELSS returns are the assumed returns dependent on the markets and are not guaranteed or assuredWhy ELSS?•ELSS offer the following advantages over traditional tax saving investments–Potential for higher returns–No limits on maximum investment amount –Lower Lock-in periodAdvantagesof being a Mutual Fund scheme–Tax benefits as an Equity scheme …•Tax free dividends •No Long-term Capital Gains–Choice of AMCs & Schemes and also Options (growth /dividend /reinvestment)–Convenience /Flexibility of investing (Lump sum /SIP /Switch /STP)Why Equities?01,0002,0003,0004,0005,0006,0007,0008,0009,00010,0001990-911991-921992-931993-941994-951995-961996-971997-981998-991999-002000-012001-022002-032003-042004-052005-06SensexCompany DepositsBank DepositsInflationGold01,0002,0003,0004,0005,0006,0007,0008,0009,00010,0001990-DepositsInflationGoldEquities in the long term are not risky !!!Equities (represented by Sensex) has outperformed all other asset classes … In past 27 years, BSE Sensex has delivered approx. 20%returns yearly India –Why Invest in Equities•9%GDPgrowthmakesIndiaamongthefastestgrowingeconomiesintheworld.Indiapresentsafundamentalsledgrowthstoryexpectedtokeepthepacehighforatleastafewdecades..•Indiancompaniestodayareverycompetitive–havegrowingcost-effectiveness,aconfidentmanagement,globaloutlook&plans,etc.TheProfitgrowthratesareveryencouraging&areexpectedtoonlycontinue•Asprofitsgrow(between15%-20%)themarketwouldalsogrowatsucharateoverlongtermsincethepricesalwaystrailtheprofits.•Themarketvaluationsarenowfairandstocksarenotovervalued.Foralong-terminvestor,theopportunitytocreatewealthovertimeisgreat.ELSS –Advantages to Fund ManagerTax Planning with ELSSTaxable IncomeTax before PlanningELSS Optimal Amt.New Taxable IncomeTax After PlanningSavings150,0005,10050,000100,00005,100300,00040,800100,000200,00015,30025,500500,000102,000100,000400,00071,40030,600900,000224,400100,000800,000193,80030,6001,200,000347,820100,0001,100,000314,16033,660You can save taxes up to Rs.33,660/-by investing the optimal amount in ELSS schemes till 31stMarch for the current F.Y. Past PerformanceMutual fund Investments are subjected to market risks. Please read the offer document carefully before investing. Past performance may or may not be repeated in future.ELSS Name1 Year2 Years3 YearsPrincipal Personal Tax Saver83.0557.6950.79Principal Tax Saving Fund81.6460.4157.40Sundaram Taxsaver72.2152.5555.35DWS Tax Saving Fund70.52N.AN.AEscorts Tax Plan 69.8554.2350.61Kotak Tax Saver Fund67.8448.20N.ACanara Robeco equity TaxSaver66.8247.9352.07Sahara Taxgain 97 Fund64.9142.9047.03SBI Magnum Tax Gain Scheme 199361.8650.6767.57Fidelity Tax Advantage Fund59.25N.AN.AFranklin India Index Tax Fund56.2046.0844.03Tata Tax Saving Fund55.8337.4342.24Franklin Taxshield Fund55.6641.1145.47UTI Equity Tax Saving Plan (ETSP)51.1734.44N.ATata Tax Advantage Fund -149.37N.AN.ABirla Sun Life Tax Relief 9647.2243.0941.91Reliance Tax Saver Fund45.7337.89N.AAverage Return under ELSS62.3046.7650.41BSE Sensex48.5247.2246.85S&P CNX Nifty57.3746.8544.44(As on 14-DECEMBER-2007)ELSS: NFOsName of SchemeNFO DatesThemeSBI Tax Advantage Fund Series IDec 03, 2007 -Mar 03, 2008A 10 year closed ended Equity Linked Savings Scheme80-100% Equity and equity related instruments0-20% Debt and money market instrumentsReliance Equity Linked Saving Fund -Series IDec 18, 2007 -Mar 17, 2008A 10 year closed ended Equity Linked Savings Scheme80-100% Equity and equity related instruments0-20% Debt and money market instrumentsJM Tax Gain FundDec 24, 2007 -Mar 25, 2008An open ended Equity Linked Savings Scheme80-100% Equity and equity related instruments0-20% Debt and money market instrumentsSummary•India is among the most attractive investment options. Don’t miss the bus !!!•Treat long-term wealth creation as a primary objective. Treat tax savings as additional /bonus. •Invest before 31stMarch !!!!About Us•1/2 Lines for Partner Profile …•1/2 Lines for Partner Profile …•We are a part of NJ Fundz Network, India’s leading advisors & distributors of mutual funds. NJ is a premium network of Financial Advisors. •As a client of ours, you would have access to one of the best online investment accounts that are updated on a daily basis and would give you consolidated valuations & other reports for All Mutual Funds –All Schemes About Us -ServicesServicesInvestment AdvisoryPlan for Financial PlanningWealth CreationChild EducationInvestment AdvisoryRegular IncomeChild MarriagePortfolio ManagementCapital ProtectionRetirement Financial Product DistributionAny Mix of AboveComprehensive PlanningHappy InvestingE-mail : Drashti.Investments@rediffmail.com