Bajaj Finserv Plans to Launch ELSS Tax Saver Fund, Draft Filed with SEBI
Bajaj Finserv Mutual Fund has filed a draft proposal to SEBI for an Equity-Linked Savings Scheme. (ELSS). This Fund will be an open-ended scheme for offering a 3-year mandatory lock-in period along with tax-saving benefits.
Bajaj Finserv is a subsidiary of Bajaj Finserv, which is a leading financial services company in India. Bajaj Finserv Mutual Fund offers a range of investment products, which include equity, debt, hybrid, and tax-saving funds.
Objective of this Fund:
The primary objective of this scheme is to provide long-term capital growth by investing in a diversified portfolio that includes equity and equity-related securities. It aims to offer benefits to investors on tax deduction under Section 80C of the Income Tax Act, 1961, for investments made in the scheme. The fund will focus on building a well-balanced portfolio, combining high-growth potential stocks across various sectors, with the goal of maximizing returns over the long term.
benchmark:
The Bajaj Finserv ELSS Tax Saver Fund will be benchmarked against the BSE 500 total return index (TRI), which provides a broad-based comparison to measure its performance. This scheme is managed by an experienced professional team, Nimesh Chandan, Sorbh Gupta, and Siddharth Chaudhary, who bring their expertise in equity and fund management to ensure optimal returns for investors. With aiming for long-term growth, the fund aims to deliver superior capital appreciation when offering tax-saving benefits under Section 80C of the Income Tax Act. Investing in a diversified portfolio of stocks, this fund seeks to generate returns that outperform the benchmark and help investors build wealth over time.
Application Fee Structure:
The minimum application amount for the Bajaj Finserv ELSS Tax Saver Fund will be Rs. 500, with additional investments in multiples of Rs. 500. The minimum investment plan for Systematic Investment Plans (SIP) is also Rs. 500, with the following contributions in multiples of Rs. 500. SIPs will require a minimum of six instalments to initiate.
The minimum amount for redemptions or switch-outs is Rs. 500, or in multiples of Re. 0.01, whichever is lower. This provides flexibility for investors to manage their investments according to their financial goals and liquidity needs. Investors are encouraged to carefully consider their investment risk appetite before proceeding with any transactions in the scheme.
The scheme aims to allocate 80-100% of its assets to equities and equity-related securities, and the remaining 0-20% is invested in debt, money market instruments, and units of other mutual fund schemes.
This scheme is available for both regular and direct plans which offer flexibility with growth and income distribution cum capital withdrawal (IDCW) options to suit different investors’ preferences. There will be no exit load, which provides investors the freedom to exit the scheme without experiencing extra charges. With its focus on long-term growth and diversified approach, the fund aims to cater to investors seeking tax-saving benefits with exposure to a well-balanced portfolio of equities and debt.
