| Investing in
Franklin Templeton funds can reduce your tax burden in 2 ways
• Tax rebates while
investing
• Concessional tax on your long-term capital gains
Tax
rebates through Section 88
Section 88 is
where you can invest upto Rs.70,000 in Franklin Templeton
funds each year and get a tax rebate of upto Rs.14,000.
Franklin
Templeton offers you two schemes - Franklin India Taxshield
(FIT) an open end equity linked savings scheme and Templeton
India Pension Plan (TIPP), an open end pension scheme - to
help you save tax under Section 88.
Templeton
India Pension Plan (TIPP)
| Objective |
Investment
recommended
|
| To help
individuals plan for retirement, while giving their
investment the potential for growth |
Rs.60,000 |
Pension Plan
is an open end scheme designed to help individuals save during
their income earning years to secure a comfortable retirement.
With a balanced allocation of upto 40% in equities and the
rest in high quality fixed income instruments, Pension Plan
has the potential to deliver steady capital appreciation over
the long term.
NAV
Performance
| |
Last
1 year |
Last
3 years* |
Last
5 years* |
Since
Inception* |
| TIPP
(G) |
12.96% |
9.57% |
11.73% |
12.50% |
| TIPP
(D) |
13.00% |
9.57% |
11.73% |
12.50% |
*
Annualised Compounded returns based on 31.12.2002 NAVs
Past
Performance may or may not be sustained in future. Dividends
declared assumed to be reinvested
How does Pension Plan
compare with PPF?
| |
Pension
Plan |
PPF |
| Returns |
13.0%*taxable |
8% tax-free |
| Minimum
lock-in period |
3 years |
5 years |
| Potential
for capital appreciation |
Yes |
No |
| Maximum
investment |
Rs.
70,000
|
Rs.
60,000
|
*
One year returns based on 31.12.2002 NAV of Rs. 19.70
Annualised compounded returns : Three years - 9.6% ; Five
years - 11.7% ; Since inception - 12.5%. Past performance is
not an indicator of future performance and does not provide a
basis for comparison with other instruments.
Concessional
Long Term Capital Gains Tax
If your investment in Franklin Templeton Funds is held for
over one year, you qualify for concessional capital gains tax
where you have a choice of two options:
| • You
can pay tax at a flat rate of 10% |
|
or |
| • You
can pay tax at a rate of 20% after adjusting the
cost of acquisition by Cost Inflation Index as
notified by the Central Government |
Advantages
of saving tax with Franklin Templeton
Scope for
capital appreciation :
With an allocation to equities, these schemes have the
potential to deliver capital appreciation over the long term
Flexible
withdrawal options :
Investments in FIT can be redeemed at NAV after a short
lock-in period of 3 years. While Pension Plan is designed to
help you save for retirement and redemptions at NAV can start
after the age of 58, you also have the facility to redeem your
investment after completion of 3 financial years to meet any
emergencies.
Convenience
:
The minimum investment amount is just Rs.500 and you can make
your investments through out the year.
|
