An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit
The Scheme was launched in July 2019.
At least 80% of the Parag Parikh Tax Saver Fund's corpus will be invested in Indian equities.
It has the freedom to:
Invest in stocks of small, medium and large-sized Companies based in India.
Invest in any sector or industry within India which appears to be attractively valued
Participate in buy-backs and other special situations within India.
PPFAS Mutual Fund's investment approach:
We are guided by the timeless principles of Value Investing.
We view equity investing as purchasing stakes in businesses, rather than merely investing in pieces of paper.
However much we like a Company, we avoid overpaying.
We prefer purchasing cash generating, low debt businesses
We like to partner with Managements who take care of the interests of minority-shareholders.
We stay away from periodic fads and fancies in the stockmarket, whether they be businesses, sectors or themes.
We will employ the same investment approach in Parag Parikh Tax Saver Fund.
Our scheme is ideal for patient investors who:
Understand that equity investments are ideal investments only for the long-term
Prefer simple investment solutions rather than complex ones
Welcome, rather than fear, stock market volatility
Indian investors who invest in this Scheme are eligible for Income Tax deduction u/s 80C upto a sum of Rs. 1.50 lakhs.
However, this is not a ceiling. Amounts beyond that can also be invested in the Scheme.
It enjoys the same Capital Gains Tax benefits as available to other India-focused Equity Schemes (viz. Gains will be taxed at a flat rate of 10%*)
* As per Income Tax Rules prevailing for the Financial Year 2022-23
While the income tax relief is certainly beneficial to many, the Scheme's other attributes mean that it could also be attractive to those who have exhausted this limit.
Also, we have always maintained that equity investments are best suited for investors who can
remain invested for at least five years. The three year lock-in in Parag Parikh Tax Saver Fund is much lower than this, and therefore should not deter you
However, Parag Parikh Tax Saver Fund will not suit you:
If you require to redeem within three years period from date of the investment.
If you are not comfortable with volatility in the Net Asset Value
If you depend on periodic income in the form of mutual fund dividends
Parag Parikh Tax Saver Fund
This product is suitable for investors who are seeking*
Long term capital appreciation
Investment predominantly in equity and equity related securities.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.