EARN MONEY SAVE TAX

Tax planning may seem like a tedious exercise requiring lot of efforts that may make an ordinary investor
nervous at the first glance. Equity Linked Savings Scheme (ELSS) offers a simple way to get tax benefits and
at the same time get an opportunity to gain from the potential of Indian equity markets.
What is ELSS?
Simply put, ELSS is a type of diversified equity mutual fund which is qualified for tax exemption under
section 80C of the Income Tax Act, and offers the twin-advantage of capital appreciation and tax benefits. It
comes with a lock-in period of three years.
Why should one invest in an ELSS?
ELSS funds are one of the best avenues to save tax under Section 80C. This is because along with the tax
deduction, the investor also gets the potential upside of investing in the equity markets. Also, no tax is
levied on the long-term capital gains from these funds. Moreover, compared to other tax saving options,
ELSS has the shortest lock-in period of three years.
BEYOND TAX SAVING

Parameter

PPF

NSC

ELSS

Tenure

15 years

6 years

3 years

Returns

(Compounded
Annually)
8.80 % ^

(Compounded
Not
assured
half-yearly)
dividends/ returns
8.60 to 8.90 % ^

Minimum
investments

Rs.500

Rs.100

Rs.500

Maximum
investments

Rs.1,50,000

No limit*

No limit*

Rs 1,50,000

Rs 1,50,000

Amount eligible Rs.1,50,000

for
deduction under
Section 80C
Taxation
interest

for Tax free

Safety/ Rating

Highest

Taxable
Highest

Dividends
and
capital gain tax free
High Risk

* There is no upper limit on investments. However, investments of only upto Rs.100,000 per year are allowed to be
claimed as deductions under Section 80C of IT Act.

Tax woes often make life seem like a burden. Dont we all just wish our hard earned money
would be ours, to invest for the future, without worrying about tax? This is why SBI Mutual
Fund presents SBI Tax Advantage Fund Series - II, a 10 year close ended Equity Linked
Saving Scheme, for investors who wish to address two critical issues: tax planning and wealth
creation.
Tax Saving through ELSS
ELSS (Equity Linked Savings Scheme) are diversified equity funds with a lock - in period of
3 years.
These funds offer tax benefits (Individual /HUF) under Section 80C of Income Tax Act, 1961
according to which, investment up to Rs 1 lakh in ELSS is deductible from taxable income.
Illustration: It helps in saving considerable amount of taxes if planned efficiently.

All figures are in rupees. (The tax calculations shown above are as per the IT slab applicable to General Individual/ HUF assessee
for FY 2011-12 exclusive of cess & surcharge.)

Investing
in
ELSS
A smart tax plan can generate incremental returns on the investments along with tax saving
benefit. There are various tax saving investment options available. In order to optimize the
benefits it is crucial to analyze the available options & selecting the one which suits your
need. Lets have a look at these options in detail.

Key Features of SBI Tax Advantage Fund Series II

Triple Benefits of Investing in SBI Tax Advantage Fund Series II
- Tax Savings
- Potential Capital Appreciation
- Tax Free Returns
A ten year close ended ELSS with 3 year lock in.
To identify stocks across market cap utilizing both Top Down and Bottom Up approach
No Investment Bias: The scheme shall have a judicial bias of Large cap, Mid cap & Small Cap
stocks
Targeted towards investors wishing to save tax and having a long term investment horizon
Scheme
The investment objective of the scheme is to generate capital appreciation over a period of ten- years by
investing predominantly in equity and equity-related instruments of companies across large, mid and
small market capitalization, along with income tax benefit.
Asset Allocation:

The Scheme shall not invest in Derivatives & Securitized debt.

Fund Facts

New Fund Offer Period

22nd December 2011 - 21st March 2012

Fund Type

10 Years Close Ended

Minimum Investment

Rs. 500 and in multiples of Rs. 500/thereafter

Options

Growth and Dividend (Payout) option

Liquidity

After 3 Year of Lock-in period

Benchmark

BSE 100

Fund Manager

Mr. Jayesh Shroff