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NFO launch | The dedicated Fund Manager for the IIFL ELSS Nifty 50 Tax Saver Index Fund is Parijat Garg. Read more here
IIFL Mutual Fund has launched country's first tax saver index fund in India - "IIFL ELSS Nifty 50 Tax Saver Index Fund," which will will be on sale through a new fund offer (NFO). The same will be available for subscription till December 21, 2022. Beginning on January 2, 2023, subscriptions and redemptions will once again be accepted continuously.
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The dedicated Fund Manager for the IIFL ELSS Nifty 50 Tax Saver Index Fund is Parijat Garg, the fund house said in a statement.
About the fund
It is as an open-ended passive equity-linked savings scheme that replicates or tracks the Nifty 50 index and has a statutory lock-in period of three years and the fund will provide both a tax benefit and create wealth.
Investment objective and strategy
The objective of the fund is to invest in stocks comprising the Nifty 50 Index in the same proportion as in the index to achieve returns equivalent to the Total Returns Index of Nifty 50 Index (subject to tracking error), while offering deduction on such investment made in the scheme under section 80C of the Income-tax Act, 1961.
It also seeks to distribute income periodically depending on distributable surplus. Investments in this scheme would be subject to a statutory lock-in of 3 years from the date of allotment to avail Section 80C benefits.
However, there is no assurance or guarantee that the investment objective of the Scheme would be achieved.
What fund manager says?
Commenting on the NFO, Parijat Garg, Fund Manager, IIFL AMC, said, “The Nifty 50 accounts for about 50 percent of India’s market cap. Taking exposure to the Nifty companies through a passive fund is an opportunity for investors to harness the growth potential of equities, reduce tax outgo, lower the cost of investing, and gain diversified exposure."
“For investors, one of the ways to leverage the India growth opportunity would be a passive investment with tax-saving benefits. Due to its passive approach, the fund eliminates the selection and behavioral biases that impact investment decision-making," Parijat added.
(Edited by : Anshul)