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IDBI Tax Saving Fund NFO

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IDBI ELSS Tax saving fund nfo

Save Tax u/s 80 C. Tax savings upto Rs 30900/=

IDBI Tax Savings Fund

IDBI mutual fund had come out with a new schemes called as IDBI Tax Savings Fund – New Fund offer. The fund was launched on 17th September 2013

What is an ELSS Scheme?

An ELSS scheme is a tax saving scheme offered by a mutual fund where if you invest money under section 80 C you get a tax benefit for the same. The money so invested is locked in for a period of 3 years. The fund manager of a mutual fund thus invests the money into equity or equity related instruments, which has the potential to generate higher returns with higher risk. For Queries

Investments in Tax saving Funds: Investments in Equity Linked Savings Schemes is eligible for income tax benefits under section 80 C of the income tax act 1961. Full deduction from the taxable income is available for investments upto INR 1 lacs. Hence the income tax benefit can go upto Rs 30900/- for somebody in the highest tax bracket of 30.90%. However the investor needs to lock in the money for 3 years. ELSS schemes have the shortest lock in period of 3 years. ELSS schemes invest minimum of 80% of the investment in equity and equity related instruments with the potential to provide superior returns besides the tax benefits. Long term capital gains tax as well as the dividends declared by an ELSS scheme are completely tax free. The ELSS schemes these days are generally open ended schemes and the investors can also take advantage by investing through SIP or STP into ELSS. The risk category for an ELSS scheme is brown. Submit your queries here

investor category for Equity linked savings schemes
Who should invest in equity linked tax savings schemes

IDBI Tax Saving Fund: IDBI has come out with an open ended ELSS scheme offering investors to invest lump sum or through SIP in the fund. The fund would invest in equities as any other tax saving fund and would also fall in the similar risk category.The timing of this NFO is important since the equity markets are not doing so well and the investors participating in the equity markets through this fund would benefit when the market turns around. For more details kindly have a look at the attached one pager IDBI Tax savings fund one pager

 IDBI Tax Savings fund has shown consistent performance since its launch in Sepember 2013

graph showing trailing returns for IDBI Tax Savings fund

IDBI Tax Savings Fund return since inception

 

 

 

 

 

 

 

 

 

Fund portfolio

IDBI Tax Savings Fund portoflio

Fund Portfolio