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NFO review: Indiabulls Tax Savings Fund

Indiabulls Mutual Fund has launched Indiabulls Tax Savings Fund, an Equity Linked Savings Scheme (ELSS). The NFO closes for subscription on 20 December.

, ET Online|
Last Updated: Sep 27, 2017, 10.24 AM IST
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Indiabulls Mutual Fund has launched Indiabulls Tax Savings Fund, an open-ended, Equity Linked Savings Scheme (ELSS). Investments in ELSS schemes qualify for a deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. The NFO closes for subscription on 20 December.

The scheme’s investment objective is to generate income and long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related securities.

“Digitisation of the economy and roll out of GST will ensure widening of tax base in the country. More people will invest in notified Section 80C investments like ELSS for tax rebates. The Indiabulls Tax Savings Fund is launched to help investors avail the dual benefits of saving tax as well as the potential to grow their savings,” said Akshay Gupta, Group Executive Head & CEO – Indiabulls Asset Management Company Limited. “Since the investments are made in equity and equity-related securities, the returns post the completion of the mandatory three-year lock-in are tax free in the hands of the investors,” added Gupta.

Should you invest?
“By rule, we do not advise investors to go for an NFO. If the new fund has some unique features that are not available in the schemes available in the market, we can make an exception. This scheme by IndiaBulls Mutual Fund is a plain, simple ELSS which will help investors save tax under section 80C. Since the scheme doesn’t have a proven track record, it makes more sense for investors to go for an established scheme than an NFO,” says Harish Barke, CFP, Way2Wealth.

Scheme at a glance:
Issue Open: Sep 21, 2017
Issue Close: Dec 20, 2017
Category: Equity- Tax Planning
Plans: Growth, Dividend
Benchmark: S&P BSE 500
Type: Open-ended
Minimum Investment: Rs 500
Minimum SIP Investment: Rs 500

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