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Aditya Birla Sun Life AMC Limited

Aditya Birla Sun Life AMC Limited

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    Why ELSS?

    Living in a consumer driven era, being spoilt for choices, we are always looking to cut the best deal & those '1 plus 1 free' offers while we shop. Wish this could apply to Tax Planning as well? Equity Linked Savings Schemes (ELSS) aims to give you a dual benefit of tax savings along with wealth building. The inherent compounding benefit, long term nature of the fund as well as the access to fund manager expertise helps you leverage the capital growth potential of equity along with the tax saving.

    Why Aditya Birla Sun Life Tax Relief '96?

    Last minute unplanned tax saving investments, can get you stuck with products which simply save tax and not increase your investment portfolio. The Aditya Birla Sun Life Tax Relief '96 can help you achieve your medium to long term goals through wealth building while saving taxes along the way.

    It invests majority (more than 80%) of its corpus in diversified equity and equity related instruments, which has the potential to outperform other investment modes over the long term, giving you an opportunity for capital growth and wealth building.

    Riskometer

    (An Open Ended Equity Linked Savings Scheme with a statutory lock in of 3 years and tax benefit.)

    Investors understand that their principal will be at Moderate High risk

    Where ELSS stand among other tax saving instruments?

    Investment Option ELSS PPF NSC FD
    Lock in period (in years) 3 Years 15 Years 5 Years 5 Years
    Return potential 11.7% p.a. 1 7.9% p.a. 2 7.9% p.a. 2 7% to 8% p.a. 3
    Possibility for Dividends Yes, with dividend option No No No
    Tax on returns Long term capital gains above INR 100,000 taxed 10% 4 Tax free after 15 years Taxable at applicable tax slab rate Taxable at applicable tax slab rate
    Investment strategy Active, market linked returns Passive, pre-determined returns Passive, pre-determined returns Passive, pre-determined returns

    1 ELSS Category Average, as on 15th November, 2019, source: Morningstar Direct.

    2 PPF and NSC, source: India Post.

    3Bank Fixed Deposit, source: Average FD rates of PSU Banks for non-senior citizens

    4Applicable surcharge & cess extra

    Note: Unlike PPF, NSC & FDs investments in Mutual Funds are subject to market risks.

    Benefits of investing in Aditya Birla Sun Life Tax Relief'96

    Tax advantage

    Annual tax saving up to INR 46,800* u/s 80C Income Tax Act, 1961

    Investment discipline

    3-year lock-in feature discourages you from making early redemptions & inculcates discipline in your investing

    Market linked returns

    You can benefit from long term capital growth potential of Equities

    Expertise

    You get access to the years of expertise of fund managers in stock selection and portfolio management

    Who should invest?

    Goal Planners

    Anyone planning for goals like retirement, child's education or any other long-term goal along with saving tax can consider investing in this fund.

    Tax Savers

    It is also suitable for young salaried individuals who are investing in equities for the first time with the twin objective of tax savings as well as capital appreciation. Read more…

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    * under section 80C of the Income-tax Act, 1961
    **this is considering income in the 30% tax bracket and 4% cess – for individuals with income in excess of INR 50 lacs and up to INR 1cr – the benefit owing to impact of surcharge would increase to INR 51,480 and for those with income in excess of INR 1cr – the benefit would increase to INR 53,820
    Please note that savings mentioned above are based on general provisions of the Income tax act, 1961 and investors are advised to consult their tax advisors to determine tax benefits applicable to them. Amount mentioned above may undergo a change if assumptions specified herein do not hold good.
    Further, Investment in ELSS schemes is subject to lock in period of 3 years from the date of allotment of units.
    Investors are advised to consult their tax advisor in view of individual nature of tax benefit. Investors are requested to note that tax laws may change from time to time and there can be no guarantee that the current tax position may continue in the future. Note: The comparison of ELSS Vs other traditional savings instruments has been given for the purpose of the general information only. Investment in ELSS carry higher risk, does not guarantee returns and any investment decision needs to be taken only after consulting the Tax Consultant or Financial Advisor. Aditya Birla Sun Life Mutual Fund / Aditya Birla Sun Life AMC Limited will not accept any liability/ responsibility/loss incurred on any investment decision taken on the basis of this information.
    Past performance may or may not be sustained in future. Please note that savings mentioned above are based on general provisions of the Income tax act, 1961 and investors are advised to consult their tax advisors to determine tax benefits applicable to them.

    Mutual fund investments are subject to market risks, read all scheme related documents carefully.