(An Open-ended Equity Linked Saving Scheme with a statutory lock-in of 3 years and tax benefit.)
Equity Linked Saving Scheme (ELSS), also known as tax-saver fund, is an open ended Equity mutual fund scheme that invest primary in equity related products. However, these ELSS mutual funds have a three-year mandatory lock in term, which is the shortest lock in period if compared to all other products that are available under Section 80C of the Income Tax Act, 1961.
Investors who wish to invest for a minimum of 3 years and are looking for higher return potential, plus the added benefit to save tax under section 80C can invest in ELSS Tax Saver Fund. At the same time, the investors should also prepare for a certain amount of risk attached to it. This is because of the equity exposure in the portfolio. Therefore, ELSS mutual funds are best suited for investors who understand equity asset class risk. These tax saver funds offer higher returns potential when compared to other tax saving schemes.
The following are the critical factors that must be considered by investors before they invest in ELSS Tax saver fund:
Yes, ELSS has a lock-in period of three years. This means one cannot withdraw their money before the said tenure ends. However, ELSS has the shortest lock-in period as compared to other similar tax-saving investments currently such as 5-year Fixed Deposits (five years), National Savings Certificate (five years), Public Provident Fund (15 years), etc.
The redemption proceeds of ELSS are not entirely tax-free. The long-term capital gains of up to Rs 1,00,000 a year are tax-free, and any gains above this limit attract a long-term capital gains tax at the rate of 10% plus applicable cess and surcharge.
The investment objective of the scheme is to generate long-term capital appreciation through investments made predominantly in equity and equity related instruments. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
The Fund’s strategy will endeavor to have a predominantly higher allocation to mid and small cap companies which will be selected through focusing on the fundamentals of the business, the industry structure, the quality of management, sensitivity to economic factors, the financial strength of the company and the key earnings drivers. The scheme will invest in about 30-40 scripts to ensure adequate diversification and reduced risk.
The following persons (subject to, wherever relevant, purchase of Units of mutual funds, being permitted under respective constitutions, and relevant statutory regulations) are eligible and may apply for Subscription to the Units of the Scheme:
The above list of persons in category 4 to 18 are not eligible for tax benefits under Section 80 C of the Income-tax Act, 1961 but are entitled to subscribe to units.
The minimum amount for application for an investor will be Rs. 500.
There is Nil entry/exit load on Samco ELSS Tax Saver Fund.
The Scheme performance would be benchmarked against Nifty 500 Index TRI
It is a proprietary framework using AI / ML technology that tests 6 important factors of businesses under various situations. It is not just a back-testing mechanism, but also does scenario analysis to see how a business would do under extreme pressure.
All manufactured products go through thorough quality tests before they ever reach the customers. We are the first fund house to apply the same level of quality testing to our investment processes so that our investor’s money is invested in the high quality efficient companies
They broadly exhibit two attributes -
We have analysed over 67,000 global companies and out of these companies only ~125 companies pass the HexaShield testing framework.
Active share of a fund measures the difference between its constituents and the constituents of the benchmark like Nifty50. Active share ranges between 0% and 100%. If a Fund's active share is 100%, it means that the portfolio of the fund is 100% different from the benchmark and if the active share is 0%, then it is exactly like the benchmark index.
This product is suitable for investors who are seeking* :
**Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
(The product labelling assigned during the New Fund Offer is based on internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made)
|Investors understand that their principal will be at very high risk
Mutual fund investments are subject to market risks, read all scheme related documents carefully.