Prajna Capital - An Investment Guide

AMCs are launching ELSS with the hope that people will invest in such funds at least for saving on tax In fact, despite volatile and uncertain equity markets, asset management companies have begun to launch equity linked saving schemes (ELSS) with the hope that investors would invest in such funds at least for saving tax. Recently, Bharti AXA, DBS Chola, JP Morgan and Tata AMC have launched their ELSS funds. ELSS funds are like other equity mutual funds with tax benefit. Investment in ELSS fund qualifies for deduction under 80C only if the money is invested for a minimum of three years. But in such fund investors need to stomach higher risk. Interestingly, some of these fund houses already have existing ELSS funds in their current portfolio but have come out with new fund offers (NFOs) in the same category. For instance, Tata Mutual Fund already has a tax gain fund called Tata Tax Advantage Fund but has come out with a new ELSS fund called Tata Infrastructure Tax Saving. Same is ...