Samco ELSS Tax Saver Fund
What is an Equity Linked Saving Scheme?

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.

Who should invest in ELSS Tax Saver Fund?

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.

What are things to consider before investing in ELSS Tax Saver Fund?

The following are the critical factors that must be considered by investors before they invest in ELSS Tax saver fund:

  • Investment horizon: The investor must have a three-year investment horizon to contemplate investing in ELSS funds. To limit market volatility, the equity exposure of ELSS funds necessitates a longer investment horizon.
  • Returns: ELSS funds do not give guaranteed returns as they are wholly dependent on the performance of the underlying securities.
Are ELSS Tax Saver Fund subject to any lock in period?

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.

What are the benefits of ELSS Tax Saver Fund?
  • Dual benefit: ELSS funds are the only type of funds in the Indian market, that give the dual benefit of a tax rebate and wealth appreciation. Under Section 80C of the Income Tax Act, 1961, who fall in the higher income tax brackets, can save up to Rs 46,800 in a year if they invest Rs 1.5 lakh per annum in ELSS and are in the 30% income tax bracket. However, Investor will get a maximum tax deduction of Rs 1.5 lakh per year in ELSS under Section 80C even if they invest more than this amount.
  • Shortest lock-in: Currently, ELSS has the shortest lock-in period of three years under Section 80C of Income Tax Act 1961.
  • Potentially higher returns: Unlike ELSS where return is market linked, other 80C investments like PPF or FDs are fixed income products. ELSS has the potential to generate significantly higher wealth in a medium to long-term investment horizon.
Is returns from ELSS tax free?

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.

What is the objective of SAMCO ELSS Tax Saver Fund?

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.

Where will SAMCO ELSS Tax Saver Fund invest?

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.

Who can Invest in SAMCO ELSS Tax Saver Fund?

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:

  • Resident adult individuals
  • Hindu Undivided Family (HUF) through Karta;
  • Minor (as the first and the sole holder only) through a natural guardian (i.e. father or mother, as the case may be) or a court appointed legal guardian.
  • Partnership Firms including limited liability partnership firms;
  • Proprietorship in the name of the sole proprietor;
  • Companies, Bodies Corporate, Public Sector Undertakings (PSUs), Association of Persons (AOP) or Bodies of Individuals (BOI) and societies registered under the Societies Registration Act, 1860(so long as the purchase of Units is permitted under the respective constitutions);
  • Banks (including Co-operative Banks and Regional Rural Banks) and Financial Institutions;
  • Religious and Charitable Trusts, Wakfs or endowments of private trusts (subject to receipt of necessary approvals as "Public Securities" as required) and Private trusts authorised to invest in mutual fund schemes under their trust deeds;
  • Non-Resident Indians (NRIs) / Persons of Indian origin (PIOs)/ Overseas Citizen of India (OCI) residing abroad on repatriation basis or on non-repatriation basis;
  • Foreign Institutional Investors (FIIs) and their sub-accounts registered with SEBI on repatriation basis;
  • Army, Air Force, Navy and other para-military units and bodies created by such institutions;
  • Scientific and Industrial Research Organizations;
  • Multilateral Funding Agencies / Bodies Corporate incorporated outside India with the permission of Government of India / RBI;
  • Other schemes of Samco Mutual Fund or any other mutual fund subject to the conditions and limits prescribed by the SEBI (MF) Regulations;
  • Schemes of Alternative Investment Funds;
  • Trustee, AMC or Sponsor or their associates may subscribe to Units under the Scheme;
  • Qualified Foreign Investor (QFI)
  • Such other person as maybe decided by the AMC from time to time.
  • 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.

What is the minimum investment amount for SAMCO ELSS Tax Saver Fund?

The minimum amount for application for an investor will be Rs. 500.

What are the entry/exit load on SAMCO ELSS Tax Saver Fund?

There is Nil entry/exit load on Samco ELSS Tax Saver Fund.

What is the benchmark of SAMCO ELSS Tax Saver Fund?

The Scheme performance would be benchmarked against Nifty 500 Index TRI

HexaShield Frame Work
What is the HexaShield testing Framework?

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.

What are the 6 facets of the HexaShield testing framework?
  1. Competitive & Pricing Power Tests
  2. Corporate Governance & Leadership Tests
  3. Balance Sheet & Debt Tests
  4. Cash Flow Tests
  5. Reinvestment and Growth Tests
  6. Regulatory Tests
Why a HexaShield tested fund?

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

What are the attributes of HexaShield tested efficient companies?

They broadly exhibit two attributes -

  1. They can survive during downturns in the economy or during a global crisis like the 2008 financial meltand the recent Covid-19 pandemic.
  2. When an economy is growing, these companies turn into compounding machines with higher rates of growth in earnings as well as sales.
How many companies pass the HexaShield testing framework?

We have analysed over 67,000 global companies and out of these companies only ~125 companies pass the HexaShield testing framework.

Active Share
What is Active Share?

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* :

  • Long Term Capital Appreciation
  • Invests predominantly in equity and equity related instruments and provide tax benefits under Section 80C of the Income Tax Act, 1961

**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.

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