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Franklin India Taxshield Direct-Growth Franklin India Taxshield Direct-Growth Franklin India Taxshield Direct-Growth Franklin India Taxshield Direct-Growth - Get latest updates on NAV, Dividends, Returns, Performance, Risks & Portfolio. Invest now! Paisabazaar INR 1000 1 rating rating rating rating rating Franklin India Taxshield Direct-Growth 3 5

Equity ELSS

PLAN: GROWTH TYPE : OPEN-ENDED OPTION: Growth

1 Yr return

11.2%

3 Yrs CAGR returns

7.51%

5 Yrs CAGR returns

7.35%

NAV as on 27 Dec

₹ 617.36 by 6.56 ( 0.03%)

Expense ratio

1.06

Lock-in period

19.29%

Fund Size (Cr)

₹ 4069.61


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Performance Graph*
Returns Calculator
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If ₹1000 invested for 1

Estimated returns*

₹ 0

with % annual returns

Direct Funds
Estimated amount
₹ 10,27,000
Regular Funds
Estimated amount
₹ 9,91,000

* The calculator, based on assumed rate of returns, is meant for illustration purposes only.More

The calculations are not based on any judgments of the future return and should not be construed as promise on minimum returns. Information gathered and material used in this calculator is believed to be from reliable sources. Paisabazaar however does not warrant the accuracy, reasonableness and/or completeness of any such information. While utmost care has been exercised while preparing the calculator, Paisabazaar does not warrant the completeness or guarantee that the achieved computations are flawless and/or accurate and disclaims all liabilities, losses and damages arising out of the use or in respect of anything done in reliance of the calculator.

investment objective

The scheme seeks medium to long term growth of capital, with income tax rebate. The scheme invests in equities and there is an exposure to PSU Bonds and debentures and Money Market instruments.

Tax Implications

Returns are taxed at 15%, if you redeem before one year. After 1 year, you are required to pay LTCG tax of 10% on returns of Rs 1 lakh+ in a financial year.

riskometer
Top Holdings
Top 10 Sectors %
Financial 30.26
Energy 16.91
FMCG 7.87
Technology 7.85
Automobile 6.86
Construction 6.56
Metals 4.71
Communication 3.73
Health Care 3.61
Others 3.61
Top 10 Sectors %
Banking 9.17
Banking 7.04
Computer Software 5.49
Banking 5.36
Cement 4
Telecom.Services 3.73
Banking 3.65
Others 3.61
Electricity Distribn. 3.28
Drugs & Pharma 3.01
Fund house details
Fund House Franklin Templeton Mutual Fund
Fund Manager Lakshmikanth Reddy
Fund Setup Date 01 Jan 2013
Address Indiabulls Finance Center, Tower 2, 12th and 13th Floor, Senapati Bapat Marg, Elphinstone Road (West)
Contact 1-800-4254255/ 60004255
Email ID service@templeton.com
More About This Fund

About Franklin India Taxshield Fund

Franklin India Taxshield aims to provide long term capital appreciation to its investors by seeking to maintain a diversified portfolio of companies across different sizes and sectors. Of 91.72% investments of the fund in Indian stocks, the fund has 67% of its investments in large cap, 11.62% in mid cap and 5.86% in small cap stocks.

Suitable for long term investments, the fun focuses on providing tax benefits to its investors under Section 80C of the Income Tax Act. An equity linked savings scheme, the fund offers tax deduction of up to Rs.1.5Lakh. The fund invests primarily in equity and equity related securities along with offering its investors the exposure to PSU bonds and money market instruments. The fund managers follow a bottom-up approach while investing.

Who Should Invest?

  • All the equity funds are subject to market risks. Being an equity large and mid-cap fund, there is a moderate level of risk involved in this fund. Therefore, if you are an investor with a smaller risk appetite, you may consider investing in this fund

Alternatively, if your investment portfolio already enables you to save taxes up to 1.5 lakh, you may consider investing in other equity funds such as SBI Bluechip Fund, Mirae Asset Emerging Bluechip Fund or debt funds such as SBI Magnum Duration Fund, PGIM India Dynamic Fund or Franklin India Dynamic Accrual Fund that may even yield better returns over the long term

  • The fund has a lock-in period of 3 years. Hence, you should only invest in this fund if you are seeking long term capital growth along with an investment horizon of a minimum of 3 years
  • Investors looking for additional tax benefits may invest in this fund. Being an Equity Linked Savings Scheme, investments made in this fund will help investors save taxes of up to 1.5 lakh in a financial year under Section 80C of the Income Tax Act
  • Since the fund provides dual benefit of long-term wealth creation (you must have an investment horizon of around 4-5 years) and tax benefits, this fund is suitable for you if you are planning to invest predominantly in equity and equity related securities
  • It is also suggested that you take a look at the CRISIL rating of the fund while making your investment decision, in order to get an idea about the overall performance of the fund over the years, based on its historical return data and portfolio attributes

Also Read: Best large cap mutual funds to invest in 2020

Taxation- How will they be taxed?

Investments made in Tata India Tax Savings Fund are eligible for a tax deduction of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. The scheme also allows a 2-in-1 benefit of investing and tax deduction, along with greater diversification of risk control and a 360-degree research. Being an Equity Linked Savings Scheme, Tata India Tax Savings Fund has a lock-in period of 3 years, which is considered the lowest among all the tax saving alternatives/investment instruments in the country.

For an example –

Let’s say, an individual has ₹2 lakh disposable taxable income in a given financial year, and s/he decides to invest the amount in ELSS. ₹1.5 lakh out of this amount would be exempted from any taxation.₹50,000 would be taxed as per the income tax slab of the investor.

It should be noted that the investment in ELSS remains locked-in for 3 years.

The returns from ELSS are taxed like that from any other equity mutual fund scheme. However, since the units can’t be redeemed before 3 years of investment, only Long Term Capital Gains Tax of 10% above ₹1 lakh will be levied.

Suppose an investor has made a capital gain of ₹1.5 lakh on investment in this scheme, and withdraws the amount after 1 year of investment, Long Term Capital Gains Tax of 10% would be levied on ₹50000. ₹1Lakh is exempted from taxation. The payable tax would be ₹5000.

Also Read: Tax Benefit On Mutual Funds In India

How to Invest in Tata India Tax Savings Fund?

  • Sign Up/Sign in to Paisabazaar.com and go to ‘Direct Mutual Funds’
  • Click on the section of ‘ELSS Funds’
  • Type and search directly by the name of Franklin India Taxshield Fund Direct Growth. Once it opens up, look at the details. You can also compare similar funds as well as use SIP Calculator or Lumpsum Calculator to estimate the future value of your investment
  • Click on ‘Invest Now’, select either Lump sum or SIP

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  • Easy to browse as Funds are segregated under Equity, Debt, Large Cap, ELSS, etc. You can further add filters of ratings, returns, fund houses
  • Important scheme details such as latest Net Asset Value (NAV), expense ratio, Assets Under Management (AUM), etc. are also available on the portal, making it easier for consumers to pick a suitable fund

FAQs

Q. What are large cap funds?
A. Mutual funds that invest in stocks of companies with larger market capitalization are called large cap funds. These companies are usually the ones with a good track record and are known to be well established players in the market.

Q. Does this scheme come under Section 80C or offers tax benefits?
A. Yes, this fund is an Equity Linked Savings Scheme (ELSS) and hence, is eligible for tax exemption of upto Rs. 1.5 lakh in a financial year under Section 80C of the Income Tax Act.

Q. What is Exit Load? Does this particular scheme have an Exit Load?
A. Exit Load is the fee charged from an investor when he decides to quit the scheme and redeem his money. Generally, there is some penalty charged only if funds are redeemed in less than 365 days, otherwise there are usually no charges. No, the fund does not have an Exit Load.

Q. What is Expense Ratio? What is the Expense Ratio of this specific fund?
A. It is the fee charged from the investor for managing his fund money and allocating it to the stocks that can help him earn returns. The fund has an Expense Ratio of 1.91%.

Q. Is there a lock-in period for this scheme?
A. The scheme has a lock-in period of 3 years, the lowest lock-in among other investment cum tax-saving options.

Q. Who manages this fund?
A. Mr. Lakshmikanth Reddy has been managing the fund since May 2, 2016. He holds a B.Tech degree in Mechanical Engineering from Jawaharlal Nehru Technical University, along with a PGDM from IIM-A. Mr. Reddy has worked with organizations such as ICICI Pru Life Insurance Company Ltd., HSBC Capital Markets, ABN Amro Asia Equities, UTI and Crompton Greaves.

Mr. R Janakiraman, a degree holder in B.E. and PGDM (Business Management) is managing this fund since may 2, 2016. R. Prior to joining Franklin Templeton Investments, R. Janakiraman has worked with Indian Syntans Inv. Pvt. Ltd., Citicorp Information Tech Ltd., and UTI Securities Exchange Ltd.