Principal Tax Savings - Regular Plan - Growth
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- Save up to Rs 46,800 in taxes every year.
- Highest returns compared to other 80C investments.
- Lowest lock-in of 3 years
|Tax Saving FD||PPF||ELSS|
|Average Annualised Returns i||6%||8%||12%|
|Tax rates i||30%||Not taxable||10%*|
|Returns after tax i||4.2%||8.00%||10.80%|
|Current rate of Inflation i||4%||4%||4%|
|Real Rate of Return i||0.2%||4.00%||6.80%|
|Lock-in Period i||5 years||15 years||3 years|
- Fund Summary
- More about Fund
- Related funds
- Why Cleartax
|Risk||Moderately High risk|
|Fund Type||ELSS (Tax Savings)|
More about this fund
|HDFC Bank Ltd||7.74%|
|ICICI Bank Ltd||6.86%|
|Reliance Industries Ltd||5.75%|
|Larsen & Toubro Ltd||4.4%|
|Kotak Mahindra Bank Ltd||3.54%|
|State Bank of India||3.47%|
|Housing Development Finance Corp Ltd||3.47%|
|Tata Consultancy Services Ltd||3.11%|
|Max Financial Services Ltd||3.09%|
About Principal Tax Savings Fund
Being an open-ended Equity Linked Savings Scheme (ELSS), it aims to create a high quality portfolio which is growth-oriented by investing primarily in equity shares of companies across sectors and market capitalisation. The fund manager attempts to provide opportunities of capital appreciation in the long run. However, the scheme does not guarantee assured returns.
Pros & Cons of Principal Tax Savings Fund
Principal Tax Savings Fund offers 3 benefits:
- Save upto ?46,800 in taxes under section 80C of Income Tax Act, 1961 (by investing in ELSS funds)
- Shortest lock-in period allows the fund manager to take better decision and look through the interim volatility.
- Being a star-rated fund, it has consistently beaten its category and the benchmark by wide margins in 3 year, 5 year and 10 year time horizons.
Fund Information and Statistics of Principal Tax Savings Fund
i) Inception / Launch date
Principal Tax Savings Fund was launched on 31 March 1996 by Principal Mutual Fund.
ii) Risk level
Being a multi-cap fund, Principal Tax Savings Fund is a moderately high risk bet and suitable for investors who have a long-term investment horizon of more than 5 years.
Redemption of Units can be made only after the expiry of the lock-in period of three years from the date of allotment of units which the holder has proposed to redeem. It will be done by a repurchase/buyback by the fund house. Under normal circumstances, your fund house will dispatch the redemption proceeds within 10 business days from date of receipt of request.
iv) Fund Manager
Mr. P V K Mohan, who is an alumnus of IIM Bangalore, has been managing the Principal Tax Savings Fund since September 2010.
v) Entry / Exit load
The fund house does not charge any entry load and exit load for investing in Principal Tax Savings Fund. However, the investor would be able to redeem the units of the scheme only upon completion of the lock-in period of 3 years from the date of allotment.
Tax benefits of investing in Principal Tax Savings Fund
Principal Tax Savings Fund has a lock-in period of three years which is the lowest amongst all other tax saving alternatives available in India. It helps you to claim a tax deduction of up to Rs. 1.5 lakhs under Section 80C from your Gross Total Income and enables saving taxes up to Rs. 46,800.
About Principal Mutual Fund
In 2000, Principal Mutual Fund began its mutual fund operations in India. Its investment philosophy is based on the pillars of clarity and integrity. The fund house strives to provide diversified investment options which focus on investment needs of the investors across all stages of life.
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All investments come with risk. Risk is the volatility or fluctuation in the price (and returns) of the investment. Usually,
- High Risk = High possible returns
- Low Risk = Stable, relatively lower returns