Tax Saving Investment Options: ELSS, PPF, NPS and More

Explore various tax-saving investment options in India, including ELSS, PPF, NPS, and more. Learn the benefits, features, and eligibility criteria to make well-informed investment decisions.

"Discover the best tax-saving investment options in India, including ELSS, PPF, NPS, SSY, and more, to help you maximize your savings and build a secure financial future. Our comprehensive guide covers everything from the benefits of Equity-Linked Saving Schemes and Public Provident Funds to the features of National Pension System and Sukanya Samriddhi Yojana. Additionally, learn about insurance policies, ULIPs, and other Section 80C investments that can help you save tax while achieving your financial goals. Stay ahead in the world of personal finance by making well-informed investment decisions with our expert insights and guidance."

Tax Saving Investment Options: ELSS, PPF, NPS and More

Saving tax is a crucial aspect of financial planning, and India offers numerous investment options to help investors save tax while also growing their wealth. In this post, we will discuss the popular tax-saving investment options, such as Equity-Linked Saving Scheme (ELSS), Public Provident Fund (PPF), National Pension System (NPS), and more. By understanding the benefits, features, and eligibility criteria of these instruments, you can make informed decisions that align with your financial goals and risk appetite.

1.    Equity-Linked Saving Scheme (ELSS)

ELSS is a type of diversified equity mutual fund that qualifies for tax deductions under Section 80C of the Income Tax Act. These funds invest primarily in equity and equity-related instruments, offering the potential for higher returns compared to other tax-saving options.

a. Lock-in Period: ELSS has a lock-in period of three years, making it a relatively more liquid option among tax-saving investments.

b. Tax Benefits: Investments in ELSS qualify for tax deductions up to ₹1.5 lakh per financial year under Section 80C.

c. Risk Profile: As ELSS funds invest in equities, they carry a higher risk compared to debt-oriented tax-saving instruments. However, they also offer the potential for higher returns in the long run.

2.    Public Provident Fund (PPF)

PPF is a long-term, government-backed savings scheme that offers tax benefits and a secure, fixed return on investment.

a. Lock-in Period: PPF has a lock-in period of 15 years, with the option to extend the account in blocks of five years after maturity.

b. Tax Benefits: Investments in PPF are eligible for tax deductions up to ₹1.5 lakh per financial year under Section 80C. The interest earned and the maturity amount are also tax-exempt.

c. Risk Profile: PPF is a low-risk investment option, as it is backed by the government and offers a guaranteed, fixed interest rate.

3.    National Pension System (NPS)

NPS is a voluntary, government-backed pension scheme aimed at providing financial security during retirement. It invests in a mix of equity, corporate bonds, and government securities.

a. Lock-in Period: NPS has a lock-in period until the investor reaches the age of 60, with a minimum of 10 years of contribution.

b. Tax Benefits: Investments in NPS qualify for tax deductions up to ₹1.5 lakh per financial year under Section 80C. Additionally, an exclusive deduction of ₹50,000 is available under Section 80CCD(1B).

c. Risk Profile: The risk profile of NPS depends on the chosen investment mix, with options ranging from conservative to aggressive.

4.    Other Tax-Saving Investment Options

Apart from ELSS, PPF, and NPS, there are several other tax-saving investment options to consider:

a. 5-Year Tax-Saving Fixed Deposits: Offered by banks, these fixed deposits qualify for tax deductions under Section 80C, with a lock-in period of five years.

b. Life Insurance Policies: Premiums paid towards life insurance policies, including term plans, endowment plans, and Unit-Linked Insurance Plans (ULIPs), are eligible for tax deductions under Section 80C.

Keywords: Tax Saving Investment Options, ELSS, PPF, NPS, SSY, Sukanya Samriddhi Yojana, LIC, insurance, ULIP, 80C investments.

Reliance RE FAQs | Reliance Industries Right Issue | RIL RE Share

Reliance  Industries Right Issue FAQs

Reliance Industries has announced the rights issue and currently the issue is open for subscription which would last till June 3, 2020. This Rights Issue looks and is also similar to most rights issues opened in the past for various companies except one thing which has set this issue apart from others in past.

There is much interest in the issue of the rights of Reliance Industries. While not the first company to raise capital through an offer of rights, it was the first company to credit its shareholders' rights entitlement directly to their demo accounts so that they could trade them on the exchange platform.

With lock-outs still effective in most parts of the country, this electronic credit comes handy for shareholders who would not be able to step outside to submit physical application forms. SEBI, in a recent circular, made buying and selling Rights Entitlements (REs) easy and simple. It could also be a preferred method of raising capital for other companies.

Reliance Industries Right Issue FAQs

1. How will the Basis of Allotment be decided? 

Subject to the provisions contained in the Letter of Offer, the Abridged Letter of Offer, the Rights Entitlement Letter, the Application Form, the Articles of Association and the approval of the Designated Stock Exchange, Company Board will proceed to Allot the Rights Equity Shares in the following order of priority: 

(a) Full Allotment to those Eligible Equity Shareholders who have applied for their Rights Entitlements of Rights Equity Shares either in full or in part and also to the Renouncee(s) who has or have applied for Rights Equity Shares renounced in their favour, in full or in part. 

(b) Eligible Equity Shareholders whose fractional entitlements are being ignored and Eligible Equity Shareholders with zero entitlement, would be given preference in allotment of one additional Rights Equity Share each if they apply for additional Rights Equity Shares. Allotment under this head shall be considered if there are any unsubscribed Rights Equity Shares after allotment under (a) above. If number of Rights Equity Shares required for Allotment under this head are more than the number of Rights Equity Shares available after Allotment under (a) above, the Allotment would be made on a fair and equitable basis in consultation with the Designated Stock Exchange and will not be a preferential allotment. 

(c) Allotment to the Eligible Equity Shareholders who having applied for all the Rights Equity Shares offered to them as part of the Issue, have also applied for additional Rights Equity Shares. The Allotment of such additional Rights Equity Shares will be made as far as possible on an equitable basis having due regard to the number of Equity Shares held by them on the Record Date, provided there are any unsubscribed Rights Equity Shares after making full Allotment in (a) and (b) above. The Allotment of such Rights Equity Shares will be at the sole discretion of the Board in consultation with the Designated Stock Exchange, as a part of the Issue and will not be a preferential allotment. 

(d) Allotment to Renouncees who having applied for all the Rights Equity Shares renounced in their favour, have applied for additional Rights Equity Shares provided there is surplus available after making full Allotment under (a), (b) and (c) above. The Allotment of such Rights Equity Shares will be made on a proportionate basis in consultation with the Designated Stock Exchange, as a part of the Issue and will not be a preferential allotment. (e) Allotment to any other person, that the Board may deem fit, provided there is surplus available after making Allotment under (a), (b), (c) and (d) above, and the decision of the Board in this regard shall be final and binding. After taking into account Allotment to be made under (a) to (d) above, if there is any unsubscribed portion, the same shall be deemed to be ‘unsubscribed’.  

2. When will the Rights Equity Shares be credited to the demat account? 

On or About June 11, 2020 

3. When will the Rights Equity Shares get listed on the exchanges? 

On or About June 12, 2020 

4. Will the Rights Equity Shares trade along with the currently listed Equity Shares of the Company?

 Rights Equity Shares are partly paid up shares and will be allocated a separate ISIN. Hence, it will not trade with the currently listed Equity Shares of the Company. It will trade separately. Once the entire Call Money is raised and the Rights Equity Shares are fully-paid up, the Rights Equity Shares will trade along with the currently listed Equity Shares of the Company. On payment of the final Call in respect of the partly paid-up Rights Equity Shares, such partly paid-up Rights Equity Shares would be converted into fully paid-up Equity Shares and shall be listed and identified under the existing ISIN for fully paid-up Equity Shares of the Company. 

5. Will Rights Equity Shares trade freely post listing? 

Yes 

6. When will next Call Money be payable? 

Remaining Call Money will have to be paid, on one or more subsequent Call(s), as determined by the Board at its sole discretion, from time to time 

7. How to withdraw an Application made through ASBA or R-WAP platform? 

An Investor who has applied in the Issue may withdraw their Application at any time during Issue Period by approaching the SCSB where application is submitted or sending the email withdrawal request to ril.rights@kfintech.com in case of Application through R-WAP facility. However, no Investor, whether applying through ASBA facility or R-WAP facility, may withdraw their Application post the Issue Closing Date. 

FAQs for Shareholders holding Equity Shares in a physical form

1. Can shareholders holding Equity Shares in a physical form renounce their Rights Entitlement? 

In accordance with SEBI circular SEBI/HO/CFD/DIL2/CIR/P/2020/78 dated May 6, 2020, the Eligible Equity Shareholders, who hold Equity Shares in physical form as on Record Date and who have not furnished the details of their demat account to the Registrar or the Company at least two Working Days prior to the Issue Closing Date, will not be able to renounce their Rights Entitlements.

2. Will share certificates be provided to shareholder holding Equity Shares in a physical form if demat account is not provided? 

No, share certificates will not be provided to shareholder holding Equity Shares in a physical form. 

3. Why will physical share certificates not be issued to successful Allottees in Rights Issue? 

In accordance with Regulation 77A of the SEBI ICDR Regulations read with the SEBI Rights Issue Circulars, the credit of Rights Entitlements and Allotment of Rights Equity Shares shall be made in dematerialised form only. 

4. What is the process for the shareholders who have been allotted shares in the rights Issue for getting the Rights Equity Shares in demat account post allotment? In case of Allotment to resident Eligible Equity Shareholders who hold Equity Shares in physical form as on Record Date, have paid the Application Money and have not provided the details of their demat account to the Registrar or the Company at least two Working Days prior to the Issue Closing Date, the following procedure shall be adhered to: 

(a) the Registrar shall send Allotment advice and credit the Rights Equity Shares to a demat suspense account to be opened by the Company; 

(b) within 6 (six) months from the Allotment Date, such Eligible Equity Shareholders shall be required to send a communication to the Company or the Registrar containing the name(s), Indian address, email address, contact details and the details of their demat account along with copy of self-attested PAN and self-attested client master sheet of their demat account either by post, speed post, courier, electronic mail or hand delivery; 

(c) Company (with the assistance of the Registrar) shall, after verification of the details of such demat account by the Registrar, transfer the Rights Equity Shares from the demat suspense account to the demat accounts of such Eligible Equity Shareholders; 

5. How much time will it take to get the Rights Equity Shares credited in demat account for those investors who have not provided their demat account details during issue period? The Company (with the assistance of the Registrar) shall, after verification of the details of demat account by the Registrar, within reasonable time initiate the process of transfer of the Rights Equity Shares from the demat suspense account to the demat accounts of such Eligible Equity Shareholders. 10. What is the last date for providing the demat account details for getting the Rights Equity Shares Allotted in the Issue in such demat account? Within 6 (six) months from the Allotment Date, Eligible Equity Shareholders shall be required to send a communication to the Company or the Registrar containing the name(s), Indian address, email address, contact details and the details of their demat account along with copy of self-attested PAN and self-attested client master sheet of their demat account either by post, speed post, courier, electronic mail or hand delivery for getting the Rights Equity Shares Allotted in the Issue in demat account. 

                        For All FAQs Download Pdf

Search Terms: Reliance Industries' rights issue, trading as Reliance Industries-Rights Entitlement or RIL-RE on the National Stock Exchange,Reliance Industries Ltd's rights entitlement,Reliance Industries - Rights Entitlement (RIL - RE),Reliance Industries' (RIL's) mega rights issues, Reliance Industries- Rights Entitlement (RE), RIL rights entitlement ratio,

ICICI maintains BUY rating on the NCL Industries, Target 210

Buy NCL Industries for a target price of Rs 210

ICICI maintains BUY rating on the NCL Industries with a revised target price of Rs 210/share. They value the company on an SOTP basis. ICICI assigns EV/EBITDA multiple of 6.5x for the boards division on FY20E EBITDA while the cement business is valued at EV/tonne of US$50/t 

Read more >>>

About NCL Industries

NCL Industries Limited is engaged in manufacturing cement. The Company offers ordinary Portland cement (OPC), Portland Pozzolana cement (PPC), OPC 53 S cement, and Plain and laminated Cement Bonded Particle Boards. The Company's segments are Cement, Boards, Prefab structures, Hydel Power and Ready-Mix Concrete (RMC). The Company's cement manufacturing units are located at Simhapuri in the state of Telangana and Kondapalli in the state of Andhra Pradesh. Its boards plants are located at Simhapuri in the state of Telangana and Bhothanwali Village in the state of Himachal Pradesh. Its RMC plants are located at Hyderabad in the state of Telangana and Visakhapatnam in the read more >>>

Fundamental Analysis of NCL Industries Ltd  find here>>>

Latest Shareholding pattern of NCL Industries Limited

find here>>.

Earlier recommendation by stock brokers;

Research Reports

Jul 06, 2018:   Buy NCL Industries; target of Rs 210: ICICI Direct
Dec 13, 2017: Buy NCL Industries; target of Rs 305: ICICI Direct
Mar 15, 2017: Buy NCL Industries; target of Rs 265: Dolat Capital
Feb 28, 2012:  Buy NCL Industries; target Rs 90: Auctus Capital
Dec 03, 2007: Buy NCL Ind; target of Rs 120: IL&FS Investsmart

Read also; Suzlon Energy~ A Multibagger in making | 2018

Searches related to NCL Industries Stock;

NCL Industries Small cap, NCL Industries wiki, NCL Industries multibagger, NCL Industries research share price, NCL Industries Debt, Rain industries share price, Nagarjuna cement share price, NCL Ind share price target, Hidden Gems, Best Cement stocks, Micro cap cement stocks,

Chennai Petroleum: Buy This Multibagger Stock

Stock Idea; Chennai Petroleum Corporation Limited (CPCL)

CMP:    352.35 INR (As on 22nd Feb, 2017)                                     Target price : INR 510*

Chennai Petroleum.

Chennai Petroleum is one of the best stocks in refineries sector trading at a very low PE. This is a buy for a number of other reasons. Chennai Petroleum is a company that is into crude oil refining.

About the company

Chennai Petroleum Corporation Limited (CPCL) is an Indian state-owned oil and gas corporation headquartered in Chennai, India. Formed as a joint venture between Government of India, AMOCO and National Iranian Oil Company (NIOC), it was formerly known as Madras Refineries Limited (MRL). Chennai Petroleum is a public sector undertaking (PSU) and categorized as Miniratna-I.

Product portfolio;

The main products of the Chennai Petroleum are;

• LPG,
• High Speed Diesel,
• Motor Spirit,
• Bitumen,
• Lube Base Stocks,
• Superior Kerosene,
• Aviation Turbine Fuel,
• Naphtha,
• Paraffin Wax,
• Hexane,
• Petrochemical Feed Stocks and
• Fuel Oil.

Fundamentals;

Mar'17
(In Rs Cr)

Total Share Capital	1,149.00
Net Worth	4,441.10
Total Debt	4,497.72
Net Block	3,882.83
Investments	140.00
Total Assets	8,938.81

Valuation;

MARKET CAP (RS CR):    5,427.08

EPS (TTM):             60.81

P/E :                        5.99

INDUSTRY P/E:          9.56

BOOK VALUE (RS):   222.53

PRICE/BOOK:            1.64

DIV (%):                      210.00%

DIV YIELD.(%):         5.76%

FACE VALUE (RS):   10.00

Why Chennai Petroleum is a multibagger stock?

Chennai Petroleum is a multibagger stock which has risen from Rs. 51.75 in October, 2013 to Rs. 480 in October, 2017 i.e. it delivered more than 800% profit in just 4 years. Chennai Petroleum witnessed a fantastic years even in 2017-18 and the same trend is expected to continue.

The company has already reported an EPS of Rs 50 in the last three quarters of FY 2017-18.  An another Rs 15 to 18 EPS is expected in the fourth quarter, if it is then the twelve month trailing  (TTM) EPS will come around Rs 65 to 68. Hence at a current price of Rs 353 the stock of Chennai Petroleum is trading around P/E multiple of 5 only and at this price valuation is mouth watering. 

Chennai Petroleum is one of the best stocks in refineries sector trading at a very low PE. This is a buy for a number of other reasons. Chennai Petroleum is a company that is into crude oil refining. As long as crude oil prices remain subdued there is a complete scope for the stock price to rally. The company has also known for excellent dividend yield track record it recently declared a stupendous dividend of Rs 21 per share accounting for a tax free dividend yield of Rs. 5.75 % at current share price of Rs 353. 

Technical;

 On yearly chart the stock of Chennai petroleum is trading at Rs. 353 (as of 21th feb, 2018), it has support at Rs. 339 which is it’s 52 week low price too. On the top line it has made high of Rs. 480. Hence as a rule of thumb it is a buy at current price with a target of 475-480 (35% upside) with a stop loss of Rs. 335-340. Risk reward ratio is highly favorable in this stock.

Threats;

Chennai Petroleum is a company that is in crude oil refining business and therefore heavily depended on crude prices.

  

Other factors related to Chennai Petroleum

Mutual Funds Holding (As of 20^th Feb, 2018)

SCHEME	NO. OF SHARES
Aditya Birla Sun Life Bal. 95 Fund (G)	1,963,018
Aditya Birla Sun Life Pure Value Fund (G)	1,389,428
Aditya Birla Sun Life Small and Midcap Fund	681,710
Aditya Birla Sun Life Frontline Equity Fund	313,295

*Broker’s View;

KR Choksey in it's research report said that they expect Chennai Petroleum to fetch an EPS of INR 68.48 for FY18E, INR 107.05 for FY19E and INR 124.95 for FY20E. While at  CMP of INR 426, the stock is trading at 3.98x of its FY19E earnings and at 3.41x of its FY20E earnings. We recommend a BUY rating with a target price of INR 510. find detail report on chennai petro here here>>>

We are at an early stage of the bull market: Madhusudan Kela

Stock market veteran and Chief Investment Strategist of Reliance Capital Madhusudan Kela is bullish on Indian market amid recent correction.

Kela in an interview with CNBC- TV18 told “There are plenty of opportunities which are there in the markets, both in midcaps and large-caps. Corrections like these give investors chance to capture the opportunity,”. Kela believes investors should not be worried of such a correction as it was long overdue since Nifty tested levels of around 7,800 last year.

“Due to the vibrancy of the market, one is getting a variety of companies to buy,” he added.

He further suggested investors to grab the opportunity in the market if more correction happens. In his word to CNBC TV18 “If there is a decent correction in the market, there are too many people waiting outside waiting to participate. You will now see all those people who felt left out coming in.” 

Sectoral View;

When he was asked about his opinion on investing in particular sector, Kela revealed his preference on infrastructure specially as ‘bear market survivors', One the other hand, he also see opportunities in the pharmaceutical and select banks. While taking about other sectors he said “There are firms which have had extremely challenging times and you can find them across caps, one has to do bottom up work as well”.

Talking about IT stocks, he suggested to focus on digital part of the business as it is all set to grow and will emerge as a market surprise in a year or two but overall, he would prefer select large-cap IT companies.

Courtesy: moneycontrol