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

Term insurance

Term insurance may not be the most-marketed product by life cos, but it’s a must-have in today’s risk-prone lifestyle WHEN was the last time your insurance agent sold a term plan to you? It’s not a very popular policy among agents, as their commission in absolute terms is low because of the low-premium. Just as agents have their self interests in mind while selling, you need to make your own decision about your insurance needs, which are unique to your family. COST ADVANTAGE A term plan is pure protection. It is the cheapest type of life insurance policy. But what you see might not be what you get, most insurers have a range of health parameters for standard rates. If any of your health parameters — weight, blood pressure for instance fall outside this range, you will pay more. For some companies, the standard range is very narrow. EARLY BIRD GAINS A 30-year-old will pay 15% more premium than a 25-year-old. At 40, the premium is double of what is applicable for a 25-year old, points...
Read more

ICICI Prudential Balanced Fund

 ICICI Prudential Balanced Fund scheme seeks to generate long-term capital appreciation and current income by investing in a portfolio that is investing in equities and related securities as well as fixed income and money market securities. The approximate allocation to equity would be in the range of 60-80 per cent with a minimum of 51 per cent, and the approximate debt allocation is 40-49 per cent, with a minimum of 20 per cent. An impressive show in the last couple of years has propelled this fund from a three-star to a four-star rating. The fund has traditionally featured a high equity allocation, hovering at well over 70 per cent, which is higher than the allocations of the peers. But in the last one year, the allocation has been moderated from 78-79 per cent levels to 66-67 per cent of the portfolio. ICICI Prudential Balanced Fund appears to practise some degree of tactical allocation based on market valuations. Within equities, well over two-thirds of the allocation is parked i...
Read more

Reliance Life Insurance company introduces 17 ULIPs

Reliance Life Insurance company has announced the launch 17 unit linked insurance plans (Ulip). The new range of Ulips encompasses several categories including child plans, pension, protection, savings and investment, which are available in two versions — basic plan with tenure of over 15 years and another with a 10-year-term. According to an official release, these Ulips are primarily targeted at customers paying a premium of over Rs 10,000. All these schemes come with features such as capital guarantee, loyalty additions, higher internal rate of return and several fund options. The plans also offer riders, including payment of lump sum on diagnosis of specified critical illnesses, surgeries and additional life cover. Policyholders have the option of choosing between automatic asset allocation, systematic transfer plan and return shield options. Recently, the company launched two traditional insurance plans — Reliance Jan Samriddhi plan (RJSP) and Reliance Traditional Super InvestAssu...
Read more

TDS Rate and Personal Account Number(PAN)

    The TDS rate doubles to 20% from 10% if you fail to mention your Personal Account Number   IF you run a glance through your pay slip, you will come across something called TDS, which is tax deduction at source. In most cases, the employer deducts this amount at the time of payment of salary itself and pays the total tax amount to the government on behalf of all the employees. If you are a self- employed or practicing professional s, you have to pay this amount yourself.    Tax deducted at source is one of the modes of income tax collection by the government. Under the income-tax laws, income tax at specified rates is required to be deducted while making certain payments.    The rate of deduction of tax at source on interest and rent payment is 10%. For salary payments, the employers deduct income tax at source on a monthly basis after computing income tax liability on estimated annual taxable income of the employee. Tax benefits on housing loan, investments, etc are consid...
Read more

L&T Tax Advantage

Best SIP Funds to Invest Online   The fund follows a growth approach to investing in quality stocks that have a large-cap tilt This large-cap tilted ELSS has fared consistently and fared better than its benchmark by posting a higher margin of outperformance. The fund follows a growth approach to investing in quality stocks that have a large-cap tilt, which is evident in its portfolio. The portfolio is further well diversified across market capitalisation and sectors with over 60 stocks finding a place in it. The upside with this fund is the fact that it has witnessed both down and up cycles of the market to come across as a winner in the long run. Do not doubt the fund based on its size and a few mediocre years of performance, because when analysing its rolling three year returns, the fund's performance stands out to qualify as a must have ELSS in one's portfolio. Stay invested through the lock-in and there are chances of benefiting from returns as well as tax savings will prov...
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