Skip to main content

Franklin India Taxshield

Tax Saving Mutual Funds Online

Download Tax Saving Mutual Fund Applications

PURELY in terms of returns, Franklin India Taxshield is not the category topper if one were to look at a three-year tenure, the minimum lock in period for a tax-savings fund or equity-linked saving scheme (ELSS). But, this fund is known to be a steady horse with above-average returns. It has a clear largecap bias, which would explain why it has outperformed the category in 2011, a dull year for the equity market. But, if the market were to rally, this fund would have just been an average performer. At the same time, you can trust it to protect your wealth much better than most of its peers if the market were to crash.

The fund's objective is to achieve long-term capital growth by investing between 80-100 per cent of assets in equities with limited exposure to PSU bonds, debentures and money market instruments, while offering income tax rebate to investors. At the moment, 91 per cent of its assets is in equities and around 8 per cent in cash. Launched in April 1999, the scheme today has about Rs 790 crore in assets under man agement (AUM).

Managed by Anand Radhakrishnan and Anil Prabhudas, the fund bets heavily on financials, energy, technology, communication and automobile stocks, a clear case of clear case of momentum investing. In the process, it does become too concen trated on specific sectors at times. For instance, its exposure to the financial services sector had gone up to 30 per cent in September 2007.
This can be a risky situation.

At the moment, the fund has the highest concentration of 16.6 per cent invested in financials, 14.66 per cent in energy, 13.33 per cent in technology and 10.64 per cent in communication. Even then, around 45 per cent of the portfolio is exposed to the top three sectors.

Some of the top stocks in the portfolio include Infosys, Bharti Airtel, ICICI Bank, Grasim Industries, HDFC Bank, Reliance Industries, Kotak Mahindra Bank, Idea Cellular, Crisil, Bosch, Gujarat Mineral Development Corporation (GMDC), Power Grid, IndusInd Bank, Cummins India and Marico, among others. Most of these stocks have been in the portfolio for long, which suggests a bottom-up and buy-and-hold style of fund management. The fund keeps the share of small-cap stocks in single digit.

At present, the fund has a portfolio of 24 stocks, out of which, the top five have about 29 per cent allocation, top 10 have 43 per cent, while the bottom 10 stocks have an allocation of less than 2 per cent each. 
 
 

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

--------------------------------------------

Invest Mutual Funds Online

Tax Saving Mutual Funds Online

 

Download Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

Some of the Top performing Mutual Funds are Invest Online

  1. HDFC Top 200 Fund
  2. ICICI Prudential Dynamic Plan
  3. DSP BlackRock Top 100 Fund
  4. Birla Sun Life Front Line Equity Fund
  5. Reliance Equity Opportunities Fund
  6. IDFC Premier Equity Fund
  7. SBI Magnum Contra Fund
  8. Sundaram Select Midcap
  9. UTI Dividend Yield Fund

Popular posts from this blog

What is Electronic Clearing Service (ECS)?

  As the name suggests, it's an electronic process through which money can be transferred from one bank account to another. According to RBI, this mode is usually used for regular payments and receipts, like distribution of dividend, interest, salary, pension etc. This mode is also used for collection of bills for telephone, electricity, water, various types of taxes, payment of EMIs , investments in mutual funds , payment of insurance premium etc. There are two types of ECS , like most other banking transactions, ECS credit and ECS debit. An ECS credit is used by a bank account holder , usually a large company or an institution for services like payment of dividend, in terest, salary, pension etc. If your mutual fund pays you dividend to your bank account, of all probability it is being paid through ECS credit.ECS debit, on the other hand, is used when a company or an institution is getting money from a large number of people. For example if you are investing in a mutual fund sc...
Read more

WEALTH TAX

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 WEALTH TAX   WHAT CONSTITUTES WEALTH? For wealth tax purposes, "wealth" means property , urban land, car, jewellery , yacht, boat, aircraft and cash in hand in excess of Rs 50,000. CAUTION POINT | Do not think you will have an easy escape from wealth tax by transferring your `wealth' without consideration to your spouse or minor child. Such assets will also be considered as your wealth. HOW TO DETERMINE YOUR TAXABLE WEALTH Add the taxable value of the above assets (computed as per the detailed rules for valuation) owned by you as on March 31 (for FY 2014-15, it will be March 31, 2015). In case you sold your car during the year, it will not be taxable wealth. Deduct loans if any obtained by you to acquire any of the taxable assets from the value of gross tax out for at least 300 days in a...
Read more

Equity Savings Fund

Invest Equity Savings Fund Online   The best part about these funds is that they are subject to equity fund taxation and at the same time are structured like MIP like funds . This new category, equity savings funds , offer a little of everything. They allocate money to equities & equity related instruments, and fixed income. They aim to generate returns by diversification. Such funds invest in fixed income and arbitrage to protect the investors from short term volatility and equity for capital gains. The best part of these funds is that they are subject to equity fund taxation and at the same time are structured like MIP funds.   MIP funds however are subject to debt fund taxation. Investors Equity savings funds are suitable for the following: First time investors who seek partial exposure to equity with less volatility and greater stability Investors seeking moderate capital appreciation with relatively lower risk Those wh...
Read more

How to Pick Top Performing Mutual Fund Schemes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   How to Pick Performing Schemes  Funds that continue to stay in the top grade of performance over longer periods are the ones to bet on, advise investment experts   The mutual fund performance charts of the past few months make for an impressive reading. Funds across all categories boast of stellar returns. Sample this: The mid and small cap category has averaged 77 percent return over the past 12 months, with the best fund delivering a staggering 120 percent. The tax-saving funds also average an impressive 51 percent, including a fund which has soared 92 percent. Many of the table-toppers are funds of proven quality and track record. However, there are also schemes that are not that well-known. Some of these have rarely made it to the performance charts in the past, yet, of late, they bo...
Read more

8% Government of India Bonds quick guide

For those seeking comfort in safety of returns, the Government of India issued 8% savings bond once again comes to the fore. First launched in 2003, these bonds are issued by the government with a maturity of 6 years. The bonds are available at all times with specified distributors through whom you can apply to invest in them. Here is a quick guide to what the bond offers and its features to ascertain to check for suitability. What are Government of India bonds Government of India bonds are like any other government bonds with specified rate of interest. The rate is fixed at 8% per annum paid half yearly, or you can opt for cumulative payment of interest at the end of the tenure. You can buy these bonds from State Bank of India and its associates, other nationalized banks and some private sector banks such as HDFC Bank Ltd and ICICI Bank Ltd, among others. The bonds can be bought from the offices of Stock Holding Corporation of India as well. They are available in physical form onl...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now