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BMA Chundrigar road savings fund

Offer Price = Rs.0.0000, Redemption Price = Rs.0.0000()

Tax Advantage

The BCSF is an attractive option for institutional and individual investors who maintain surplus cash in bank deposits. We have calculated the after-tax returns for bank deposits and compared this with what an institutional and an individual investor would earn by investing the same amount in BCSF in the table below.

This table highlights that by investing in the BCSF,

1. Institutional investors can earn a 1.9% advantage on an after-tax basis as compared to a bank deposit; and
2. Individual investors can earn a 9.7% advantage on an after-tax basis

(For Institutions Only)			(For Individuals Only)
Narrative	Bank Returns	BCSF	Bank Returns	BCSF
Investment Size	1,000,000	1,000,000	1,000,000	1,000,000
Assumed Income	9%	10% (Note 1)	7%	10%
Annual return	90,000	100,000	70,000	100,000
Withholding Tax (Note 2)	10%	(0%)	10%	(0%)
After tax return	81,000	100,000	63,000	100,000
Tax rebate	Nil	Nil	Nil	60,000 (@ 20% on Rs.300,000)
Total return	81,000	100,000	63,000	160,000
Net Returns (Note 3)	8.1%	10.0%	6.3%	16.0%

Note 1: Average Industry Return for FY07 (Actual returns will be subject to market conditions)

Note 2: In case of bonus dividends there will not be any capital gain or withholding tax

Note 3: Prospective Investors should not treat the contents of this document as advised and must rely on the advice of their own tax consultants