Page 18 - HDFC Bank TPP Flipbook

Key features of ELSS - Equity Linked Savings Schemes

Objective Long term Capital Appreciation and Tax Planning
Risk Very High
Investment Portfolio Equity and Equity Related instruments – Generally
Large and Midcap stocks

Who should invest? Investors with higher risk appetite, and relatively
higher return expectation
Investment Horizon Long term (lock-in period of 3 years)
Tax Deduction- Section 80C* Investments up to r 1.50 lakh exempt from tax
Tax Implications Long term Capital Gains Tax

*As per current income tax rates individual falling in highest tax bracket.
Average Returns of Recommended ELSS Schemes compared with other indices

Average Returns of Recommended ELSS Funds Nifty 50 ICRA Composite Bond Fund Index

70.00%
60.00%
50.00% 43.52%
40.00% 36.38%
30.00% 23.03%
20.00% 18.48% 19.73% 16.65%
10.57%
10.00% 4.78% 7.88%
0.00%
1 Year 3 Years 5 Years

Note: Returns are for the period ending 25th November, 2021. Return figures for all equity oriented schemes are
absolute for <=1 year and compounded annualised for >1 year. Moreover, past returns cannot be taken as an
indicator of future performance.
Thus, it is clear that in order to avail of the maximum benefits of long term investing with the lowest lock-in
period, one can consider investing in Equity Linked Saving Schemes. Also, looking at the CAGR returns for
the past 3 years, it is clear that the ELSS have outperformed the conventional tax saving options as well as the
broader equity market indices and debt market indices. We continue to remain positive on the Indian markets from
long term point of view. Investors can consider the recommended ELSS funds to do their tax as well as wealth
planning.

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