Why should you invest in Franklin India Taxshield?
• This fund falls in the category of “Equity Linked Savings Scheme” (ELSS)
• It offers investors a tax deduction (Individuals and HUF) for an investment of upto Rs 1.5 lac which is allowed under Sec 80 C of Income tax Act 1961 (subject to a lock in period of 3 years)
• Tax savers aims to provide long term capital appreciation by seeking to maintain a diversified portfolio of companies across different sizes and sectors
What are the “Tax Benefits” of investing in this fund?
• Long term capital gains (LTCG) tax @10% (plus surcharge, if applicable and cess) without indexation if units held for more than 12 months^
• Short term capital gains (STCG) tax @ 15% (plus surcharge, if applicable and cess) if units are held for less than 12 months
• Investor does not pay any tax on dividends but a Dividend Distribution Tax (DDT) is deducted at source @11.648% (10% + 12% surcharge + 4% Health & education cess) ^^
^ Capital gain accrued up to January 31st 2018 is exempt form LTCG tax in respect of units acquired before January 31, 2018 & redeemed on or after April 1, 2018.
^^ The DDT is to be paid by the mutual fund after grossing-up income distributed to the investor.
Top 10 companies and sectors where the fund has invested as on 31/05/2018 are given below*:
• Kotak Mahindra Bank Ltd. (Banks)
• Axis Bank Ltd. (Banks)
• Hindalco Industries Ltd. (Materials)
• Power Grid Corp. of India Ltd. (Utilities)
• Indian Oil Corp. Ltd. (Energy)
• HDFC Bank Ltd. (Banks)
• Mahindra & Mahindra Ltd. (Automobiles & Components)
• Grasim Industries Ltd. (Materials)
• Yes Bank Ltd. (Banks)
• Infosys Ltd. (Software & Services)
What is the “Ideal Investment Horizon” while investing in this fund?
The recommended investment horizon is “5 years or more”