Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: ACCOUNTING STANDARDS :: VAT Audit :: articles on VAT and GST in India :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: TDS :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4%
 
 
General »
 Advance tax payout by top cos grows just 2% in Sept quarter
 Why abolishing personal income tax may not be a good idea
 Questions about the GST cess
 How to prepare for the looming tax-extension deadline
 Income tax: Gratuity for employees raised to Rs 20 lakh; here is how you will benefit
 Haryana to set up scrutiny panel on GST benefits
 Waive certain taxes for companies in insolvency proceeding
 I-T department to appoint 7600 more tax return preparer scheme to cover entire country
 All eyes are on GST as Centre plans higher social pension
 Exporters demand total exemption from GST
 Here's what you must know to stay clear of taxman

Tax sops do it for ELSS
March, 19th 2009

EQUITIES may have lost the flavour with the market and so have equity diversified mutual fund schemes. However, thanks to the income-tax incentives, equity-linked savings schemes (ELSS) have still not lost their flavour completely with investors. It is, in fact, interesting to note that of late, net inflows into the ELSS category of funds have exceeded the inflow into the equity-diversified category. This is despite the fact that the number of schemes under the equity-diversified category outnumbers those of the ELSS category by a huge margin.

There is no denying that the market slump has hampered the growth of equity diversified schemes to a large extent over the past six to eight months. However, an ETIG analysis of the monthly inflows under the various categories of equity funds since March 2006 reveals that the inflows into ELSS have always been much more consistent vis--vis the equity diversified schemes. While ELSS has not seen extremely heavy influx of cash in any given month during this period, it has also not witnessed negative inflows (net outflow) for any of the 35 months till date.

Diversified equity schemes, on the other hand, have been a highly volatile category of funds where inflows in certain months have crossed five digits, while in some others they are into the negative terrain.

This stability in ELSS category may well be attributed to the structure of these schemes. Though both categories of funds have similar investment strategies, benchmarks and objectives, the three-year lock-in period tagged to ELSS category restricts investors from an early exit.

Moreover, since the initial investments into these schemes are entitled to tax benefits under the 80C basket limit of Rs 1 lakh, it is difficult for the investors to discontinue their monthly systematic investment plans (SIPs) from such schemes in a jiffy. Infact, March usually witness a very heavy influx of cash into these schemes. So much so that the net collections in March alone are thrice the collections of any other month. As March is back, it would be interesting to watch whether ELSS is able to maintain its year-long trend this year.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions