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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.
Franklin
India Taxshield (FIT)
| Objective |
Investment
recommended
|
| To provide
medium to long term growth of capital along with
income tax rebate |
Rs.10,000 |
FIT is an
open end growth scheme investing predominantly in equity and
equity related instruments which have the potential to deliver
capital appreciation over the long term. Taxshield with a
conservative and quality minded approach to investing has
recorded healthy growth, rewarding investors with steady
performance over the long term. The following table
demonstrating the performance of the Taxshield series of
schemes stands testimony to this.
Performance
| |
Last
1 year |
Last
3 years* |
Last
5 years* |
Since
Inception* |
Ratings** |
| FIT (G) |
14.51 |
0.44 |
- |
27.77 |
 |
| FIT (D) |
14.45 |
0.44 |
- |
27.77 |
" |
| FIT 95 |
15.69 |
-16.34 |
23.69 |
11.33 |
|
| FIT 96 |
24.92 |
-17.84 |
13.61 |
12.42 |
|
| FIT 97 |
12.01 |
-16.49 |
18.34 |
17.71 |
|
| FIT 98 |
21.48 |
-12.32 |
- |
24.32 |
- |
| FIT 99 |
23.06 |
-15.04 |
- |
19.16 |
- |
*
Annualised Compounded returns based on 31.12.2002 NAVs -
Scheme Name, Inception Date, NAV : Taxshield (G), 10.4.1999,
Rs.24.94; Taxshield (D), 10.4.1999, Rs.11.72; Taxshield 95,
31.3.1995, Rs.23.00; Taxshield 96, 31.3.1996, Rs.22.06;
Taxshield 97, 31.3.1997, Rs.25.56; Taxshield 98, 31.3.1998,
Rs.28.16; Taxshield 99, 31.3.1999, Rs.19.32.
Past performance may or may not be sustained in future
Dividends declared assumed to be reinvested. ** Value Research
Ratings
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.
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