Review: Principal Personal Tax Saver Fund (Tax-Saving ELSS)

The Principal Asset Management Company Ltd. Is managing the tax saving ELSS fund called Principal Personal Tax Saver Fund (ELSS). The scheme is in essence a Equity linked saving scheme (ELSS) and is claimed to be backed by the decades of experience that Principle Mutual Fund Managers have.

The scheme is old enough, was launched on 31-03-96.

Here are some features of this scheme:

Minimum Investment: Rs. 500

Subsequent Investment: Rs. 500

Systematic Investment Plan (SIP available? : YES

Minimum SIP investment: Rs. 500
Minimum 6 Cheques required

Entry Load 2.25%

Expense Ratio %: Has been steady at 2.5%

No. of Days for Redemption: 3 working days

Lock In period: 3 years (standard for ELSS)

Here is a chart showing the historical performance of the Principle Personal Tax Saver Fund as compared to tax Planning Equity (borrowed from Value Research) :



Unfortunately, no information is available about the way the returns are calculated.

In essence, this is a standard similar scheme as compared to any other ELSS scheme in India. The fund has standard charges for entry load, so nothing great or fascinating about it.

Major lucrative points for Principle Personal Tax Saver ELSS Fund is that it offers tax benefit and comes at the cost of a lock-in period of 3 years. Individuals looking for Tax saving at the last moment can dump their money in this fund and forget it for atleast 3 years.

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