10-12-2012, 05:19 PM
A PROJECT REPORT ON EQUITY LINKED SAVINGS SCHEME THE FAVOURITE TAX SAVING INSTRUMENT
EQUITY LINKED SAVINGS.doc (Size: 870 KB / Downloads: 122)
INTRODUCTION
The Year 2008 brings with it more work and diligence, especially in the area of tax planning. And it's that time of the year when one has to be innovative with your investments to save tax. Instead of opting for the conventional tax-saving instruments like PPF, NSC, RBI bonds, and LIC policies, a better and remunerative way of investing your hard-earned money is the ELSS. An Equity Linked Savings Scheme (ELSS) is a tax saving instrument provided by mutual funds. It offers the benefits of getting equity linked returns and with the additional benefit of tax saving. Here is an analysis of the nitty-gritty involved in an ELSS, which would give a perspective as to why it is a better alternative to other tax-saving instruments.
OBJECTIVE
The objective of this project is to facilitate in getting the better understanding from the investor side about their priorities while investing and how mutual funds actually operate as well as the various tax saving mutual funds handled by Karvy Stock Broking Ltd.
The project would also reveal the fact that the main priority of any working person while entering into an investment is to save on taxes, which in turn compels me to present a detailed study of the tax saver funds or the ELSS funds.
This would help Karvy Stock Broking Ltd. in making marketing strategies specifically to promote the tax saver funds.
Building a heritage of Confidence...
Vision
To achieve & sustain market leadership, Karvy shall aim for complete customer satisfaction, by combining its human and technological resources, to provide world class quality services. In the process Karvy shall strive to meet and exceed customer's satisfaction and set industry standards.
Mission statement:
“Our mission is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership position by building an innovative, enterprising , and technology driven organization which will set the highest standards of service and business ethics.”
Since its inception in 1982, Karvy has demonstrated a dedication coupled with dynamism that has inspired trust from various segments, corporates, government bodies and individuals. Karvy has since been performing a pivotal role as the intermediary the interface between these players.
With Mutual Funds emerging as a distinct asset class, Karvy has made a strategic choice to leverage the power of latest technology to provide a cutting edge to its services. They, today, service nearly 40% of the asset management companies (AMCs) across an extensive network of service centres with assets under service in excess of Rs.2, 27, 033 crores. Mutual fund services have been undergoing a sea change in the Indian market place and asset management companies are finding their niche in delivering unique products and service offerings.
Their ability to mass customize and offer a diverse range of products for a diverse range of customers has helped mutual fund companies to uniquely position themselves in the market place. These diverse range of services cut across multiple delivery channels, service centres, web, mobile phones, call centre has brought home the benefits of technology to investors, distributors, and the mutual funds.
Going forward, they strive to create new products and services, which would address the needs of the end customer. Their single minded focus in delivering products for customers has given us the distinguished position of being the preferred provider of financial services in the country.
ORGANIZATIONAL STRUCTURE
The organization structure of karvy has a board of directors as the supreme governing body , the chairman being Mr. C Parthasarthy, Mr. M Yugandhar as the managing director, Mr M. S.Rramakrishna and Mr. Prasad V. Potluri as directors.
Karvy group being the flagship company looks after the functional departments such as corporate affairs, group human resources, finance & accounting, training & development, technology services and corporate quality.
Karvy computershare private limited facilitates mutual fund services, share registry and issue registry whereas merchant banking is looked after by karvy investor services ltd. Karvy stock broking ltd heads its another branch too ie. Karvy insurance broking ltd. The services offered by KSBL are: stock broking, depository, research, distribution, personal client group and institutional desk. And finally the BPO services are managed by karvy global services ltd.
FUNCTIONS AND RESPONSIBILITIES
SEBI has to be responsive to the needs of three groups, which constitute the market:
The issuers of securities
The investors
The market intermediaries.
SEBI has three functions rolled into one body quasi-legislative, quasi-judicial and quasi-executive. It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity. Though this makes it very powerful, there is an appeals process to create accountability. There is a Securities Appellate Tribunal which is a three member tribunal and is presently headed by a former Chief Justice of a High court - Mr. Justice NK Sodhi. A second appeal lies directly to the Supreme Court.
SEBI has had a mixed history in terms of its success as a regulator. It has pushed systemic reforms aggressively and successively (e.g. the quick movement towards making the markets electronic and paperless rolling settlement on T+2 basis). SEBI has been active in setting up the regulations as required under law.
Different investment avenues are available to investors. Mutual funds also offer good investment opportunities to the investors. Like all investments, they also carry certain risks. The investors should compare the risks and expected yields after adjustment of tax on various instruments while taking investment decisions. The investors may seek advice from experts and consultants including agents and distributors of mutual funds schemes while making investment decisions.