Franklin India ELSS Tax Saver Fund(IDCW)
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Business Overview
Franklin India ELSS Tax Saver Fund (IDCW) is a well-regarded equity-linked savings scheme aimed at investors looking to save on taxes while growing their wealth. Ideal for individuals seeking long-term capital appreciation, this fund invests primarily in equities and equity-related instruments. It offers the dual benefit of tax deductions under Section 80C and the potential for significant returns over time. With a strong track record and professional management, this fund is a smart choice for those planning for their financial future.
- Tax benefits under Section 80C
- Focus on long-term capital growth
- Managed by experienced professionals
- Diversified portfolio across sectors
- Suitable for risk-tolerant investors
Investment Thesis
Franklin India ELSS Tax Saver Fund stands out due to its strong promoter credibility, robust digital services growth potential, and attractive valuation compared to peers. This fund offers a compelling investment opportunity for retail investors seeking long-term wealth creation while benefiting from tax savings.
- Strong backing from a reputable promoter group enhances investor confidence.
- Digital services expansion presents significant growth opportunities in the evolving market.
- Attractive valuation metrics compared to peer funds make it a cost-effective choice.
- Consistent performance track record showcases fund management expertise.
- Ideal for investors looking to maximize returns while saving on taxes.
Opportunity vs Risk
- Tax benefits on investment
- Long-term capital growth potential
- Diversified equity exposure
- Strong historical performance
- Experienced fund management team
- Market volatility impacts returns
- Lock-in period for 3 years
- Performance linked to equity markets
- Economic downturn risks
- Management fees may reduce returns
Peer Perspective
Franklin India ELSS Tax Saver Fund trades at a slight premium compared to peers like Axis Long Term Equity Fund and Mirae Asset Tax Saver Fund. A rerating could occur with improved margin stability and consistent growth.
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10BusinessHighThe fund operates in a future-ready sector with a clear investment model.
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10GrowthHighConsistent revenue and profit growth observed over the past few years.
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10ProfitabilityHighROE and ROCE are above industry averages, with healthy cash flow.
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8ValuationHighValuation metrics are reasonable compared to peers.
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7BalanceHighStrong balance sheet with low debt and good liquidity.
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6GovernanceGoodPromoter holding is stable with no significant pledging.
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5DriversGoodGrowth drivers are present, but execution risks remain.
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5TechnicalsGoodMarket sentiment is neutral with moderate liquidity.