Franklin India Taxshield Fund is an open-ended investment scheme linked to equity. The fund aims for medium to long-term capital growth. The fund manager primarily invests in equity-related securities as well as access to PSU securities and money market instruments. It follows a stock-picking bottom-up strategy and prioritizes interest. Although there is no guarantee assured returns due to the presence of market risk.
Franklin Taxshield Growth is an ELSS – ELSS portion provides benefits under 80C. ELSS funds are also equity mutual funds. Long-term capital gains from equity mutual funds (and STT paid stock) are zero tax. So the maturity amount after the lock-in period will also be tax-free.
An equity-linked saving scheme is a form of mutual equity fund, but they have tax benefits, investment in ELSS of Rs 1, 50,000 per year is taxable under Section 80C of the Income Tax Act. ELSS holds more than 80% of the equity or equity portfolio related to securities. Also, there is a 3-year lock-in period during which an investor is unable to redeem, transfer, or pledge the units.
An investor can claim tax benefit on the period of ELSS investment in the investment year. Therefore, an investor can opt for SIP or lump sum onetime bullet investment in ELSS. Most investors opt for a monthly SIP instead of a one-time investment. ELSS is an outstanding tax saving and wealth creation investment tool. However, before making any investment, you should carefully examine various ELSS schemes.
Shri Lakshmikanth Reddy and Mr. R. Janakiraman are having rich experience in fund management with reputed fund houses. Janakiraman has been managing the Franklin India Taxshield Fund since May 2016.
Tax benefits of investing in Franklin India Taxshield Fund
The most significant advantage of investing in ELSS is the EEE position it enjoys, which means that the investment is TAX EXEMPT at all three levels i.e., investment, accrual of profit, and withdrawal.
The franklin india prima fund direct growth has a lock-in period of three years, which is the lowest among other tax-saving options in India. It gives you to claim a tax deduction of up to Rs. 1.5 lakhs under Section 80C from your Gross Total Income and allows you to save taxes up to Rs. 46,800.
NAV Disclosure and Benchmark for Franklin India Taxshield
NAV: NAV is measured using the net worth of the market value of the plan and the number of units on the measurement day of the NAV. The plan’s liabilities are removed from net assets and accrued interest, and the resulting amount is divided by the number of units outstanding on the same day. The NAV is calculated on every working day and is widely published in at least two widely-distributed newspapers.
Liquidity: Repurchases and redemptions are allowed under the scheme on all working days. Once a valid request has been made to redeem the mutual fund, the funds will be remitted to the unitholders within ten days of receiving the request for redemption at the official acceptance points of the transaction.