Skip to main content

Franklin India Taxshield Fund

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

Franklin Taxshield

A tax plan for the cautious investor

If you have limited risk appetite and are looking for tax-saving equity options, then Franklin India Taxshield is a good scheme to invest in the ELSS universe. With a return of 25.4 per cent compounded annually in the last 10 years, the fund convincingly beat its benchmark S&P CNX 500's return of 19.8 per cent over the same period.


This record is impressive considering that the benchmark index is a more diversified basket of stocks accounting for over 90 per cent of the total market cap, and is considered a tough benchmark to beat in the long term. The index has a good proportion of mid-cap stocks as well. Franklin Taxshield, on the other hand, managed this returns by predominantly investing in large-cap stocks

Suitability

Franklin Taxshield is suitable only for investors who cannot stomach too much risk and are content with reasonable returns that compensate the limited risk assumed. The fund fits such investors for the following reasons: one, it predominantly invests in large-cap blue chip stocks that are relatively less volatile in terms of earnings performance. Two, such exposure also contains downside risk during steep market falls, when mid-cap stocks typically bear the brunt of the market rout.

Three, except in 2009 when the fund preferred to participate in the market rally that just began, it has since 2004, been a regular dividend distributor for those who opted for a payout. As is the case with many funds from the Franklin house, the fund often pays dividends when it anticipates markets to peak.For instance, it paid hefty dividends twice in 2007, once at the beginning and once closer to the end of that year when markets rallied. To this extent, it is suitable for investors who wish to take some money off the table, given that their investment is otherwise subject to a three-year lock-in.

 

Performance

Franklin India Taxshield has a good record in the diversified fund universe, making it to the top quartile of performance chart over 3, 5, 7 and 10 year time frames. Unless you need the money after the three-year lock-in, you can consider holding this fund for longer time frames as well.

 

The fund performs particularly well in volatile markets as demonstrated in the last three years. Its compounded annual return over this period, at 10.6 per cent, is higher than top peers such as ICICI Pru Tax Plan. On a risk-adjusted basis (measured by Sharpe Ratio), the fund stands out as the top player in the ELSS universe over the last three years, suggesting that it delivers adequately for the measured risk it undertakes.

 

Over the same period, the fund beat its benchmark close to 90 per cent of the times on a rolling return basis. Over the last one year though, the fund lagged its benchmark by a percentage point. It also lagged quite a few peers. This could be primarily attributed to the rally in midcaps. The fund's benchmark has a good proportion in mid-cap stocks. Top peers in the last one year, such as Reliance Tax Saver also held as much as two-thirds of their holding in mid-cap stocks to ride the rally. Franklin Tax Shield, though, held about a fourth in midcaps.

 

Portfolio

Besides lower exposure to mid-caps, Franklin India Taxshield's exposure to certain sectors until the beginning of 2012 did not help either. Higher exposure to sectors such as software, which underperformed, and lower exposure to the robust pharma sector a year ago, may also have resulted in marginal underperformance. But the fund had by mid 2012 pruned exposure to software by reducing stakes in stocks such as Infosys and by also upping its holding in the pharma space. Holding in the telecom stock Bharti Airtel was also reduced. Gateway Distriparks, Gujarat Pipavav Port and Jagran Prakashan are some of the interesting mid-cap stocks that the fund holds.The fund is managed by Anand Radhakrishnan and Anil Prabhudas

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 in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

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

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

Am you Required to E-file Tax Return?

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   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...
Read more

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...
Read more

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...
Read more

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...
Read more

FCCB buyback

WITH dismal share valuations causing bondholders to redeem, and not convert their foreign currency convertible bonds ( FCCBs ), which until early this year were regarded as one of the most preferred options for raising corporate debt, suddenly seem to have become millstones around the necks of issuers. It is the redemption pressure on cash-starved issuers, coupled with the need to preserve liquidity by mitigating further forex outflow, which seems to have prompted the Reserve Bank of India ( RBI ) to issue the circular permitting buyback of FCCBs. As per the circular, issuers can now buyback FCCBs under the automatic route up to any limit out of existing foreign resources or by raising fresh external commercial borrowings (ECBs,) if effected at a minimum discount of 15% on the book value. Further, FCCBs up to $50 million can be bought back with prior RBI approval out of rupee resources representing “internal accruals”, if effected at a minimum discount of 25% on the book value. I...
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