Principal Personal Tax Saver is managed by Anupam Tiwari. The scheme seeks capital appreciation with at least 80 per cent exposure to equities, FCDs, preference shares and bonds of companies. The scheme can make investments in money market instruments up to 20 per cent. The scheme offers liquidity through repurchase at NAV. New investors can safely skip this fund. If you have already invested in this scheme, exit now to invest in a better performing fund.
Principal Personal Tax Saver is a large & mid cap fund which means most of your money will be invested in stocks of large and medium sized companies. About 82.24% of the fund’s money is allocated to stocks of large-sized companies, and around 18% to stocks of mid sized companies. Mid-sized stocks can give kicker returns as they turn into large stocks but this happens not so frequently, while large cap stocks tend to give stable returns.
- Saving on tax outgo
- Child's education
- Child's marriage
- Planning for retirement
- Creating wealth
- Lifestyle needs
If you had invested Rs 1 lakh when the fund was launched in March 1996, your value of investments would be around Rs 9.8 lakhs. If you had invested Rs 1 lakh for 5 years, your value of investments would sadly drop to Rs 101,000. The performance has not been better than the average mutual funds in this category.
Assume you had invested Rs 10,000 every month in Principal Personal Tax Saver through SIP for the past 5 years today you would have around Rs 7.30 lakhs.
A onetime fee of Rs 100 is charged on investments over Rs 10, 000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.
No exit load applies for units withdrawn from this scheme. Expense ratio of Principal Personal Tax Saver is 2.48%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.
The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year. Principal Personal Tax Saver qualifies for Sec 80C ELSS benefits, which means you can invest up to Rs 1 lakh a year in this fund and deduct the amount from your gross total income for computing income tax.