Save TAX with March Maniacs!!

 By Rahul Pithadia – 

Save your Taxes before the end of this Financial Year with the Top ELSS Funds or so called the “Tax Maniacs” of March 2017. Have a look – 

 

Axis Long Term Equity Fund –Growth is an open ended Equity Linked Saving Scheme [ELSS] which has a lock in period for 3 years. This scheme is ranked 4 in ELSS category by CRISIL.

Taxation: This fund aims for “SHARE LESS SAVE MORE”. This fund helps the investors to get tax rebates under section 80 C of Income Tax Act.

Portfolio Analysis: The major holdings of this fund are into Banking and Automotive sectors. Below is the table shown of Top Holding & Sectorial allocation of this fund.

Top holdings 1 20170323

Risk: This fund has concentrated exposure to sectors and so the risk is high. Also we are seeing loss of momentum on upside which is a caution sign. Fresh investments should be done in form of SIP only with time horizon of three years or more.

Investment rationale:

Axis Long Term Equity ELSS scheme can move in sideways to negative action over near term. Faster move above peak high will indicate that next bull trend in this fund has started which will create wealth for investors. Currently wave y is ongoing during which one can adopt systematically buying on dips strategy.

 

Birla Sun Life Tax Relief 96 is an open ended Equity Linked Saving Scheme (ELSS) with 98.31% exposure to equity.

Portfolio Analysis: The fund aims to generate returns by investing in complete equity with maximum exposure to Banking/Finance and Automotive sector.

Top holdings 2 20170323

Risk Profile: This fund is considered as “Risk Fund” due to complete exposure to equity instruments, therefore it’s suitable for investors who are looking for Tax benefits. 

Taxation Perspective: Birla Sun Life Tax Relief 96 is ELSS fund is where investor is eligible for tax exemptions up to 150,000 INR under section (u/s) 80C of the Indian Income Tax Act, 1961 if they stay invested for three years or more. ELSS Funds are also eligible for Long Term Capital Gains which will be treated tax free as the holding will be more than one year. The Dividend earned from ELSS funds is also treated as tax free.

Investment Rationale: Birla Sun Life Tax Relief 96 fund has shown some outperformance despite of no clear trend in the Indian Equity Markets.  We can expect the same in this fund to continue for next few weeks and one leg is still pending on downside which should provide excellent buying opportunities for lump sum investors.

Invest NOW in Birla Sun Life Tax Relief 96 Fund online – Click here

 

Save your Taxes and Earn the best out of them! Write to us HERE for more details

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