Mumbai: Mahindra Asset Management Company Pvt. Ltd. (MAMCPL), the investment manager to Mahindra Mutual Fund and a wholly owned subsidiary of Mahindra Finance, today, launched Mahindra Mutual Fund Kar Bachat Yojana – an Open Ended ELSS Scheme with a 3 year lock-in period. The New Fund Offer closes on October 7, 2016, and will reopen for continuous sale and repurchase from October 19, 2016.
Mahindra Mutual Fund Kar Bachat Yojana, is targeted at tax payers who can avail of the benefit of deductions allowed under Section 80C of the Income Tax Act 1961. It will provide these investors with a tax-saving option under section 80C. Additionally, since each investment remains locked in for a period of three years, all redemption proceeds are tax free and hence the scheme gives investors an opportunity to build a tax-free corpus over the long term, on investments beyond the 80C limits as well.
Mr Ashutosh Bishnoi, CEO and Managing Director, MAMCPL said, “This Yojana is for those people who not only want to save tax but also wish to create a tax-free corpus through their long term investments. They either want to build careers, family financial security, a home, family assets or upgrade their lifestyle. With this Yojana, we are launching a theme ‘Kuch Kar Bachayein. Kuch Kar Dikhayein’. It is a call to action for younger tax payers to seize this opportunity to make something of their future by allowing the long term nature of equity investments to work for them.”
He added, “The mutual fund industry pre-dominantly concentrates on the top few cities in India. We chose to take the path less travelled, to tap into the savings and investment potential beyond urban India in the semi-urban and rural markets. Our approach revolves around educating the potential customer in our priority markets and explaining the investment opportunities to them in their own language, starting with the product names. Mahindra Mutual Fund Kar Bachat Yojana, is the first endeavor in that direction. We believe that helping the customer understand the role of a specific mutual fund product in his or her life will be the key to inculcating an investment culture in our key markets.”
The Open Ended ELSS Scheme, seeks to generate long-term capital appreciation through a diversified portfolio of equity and equity related securities.
Mr Ashutosh Bishnoi, further said, “In July we launched Mahindra Liquid Fund (an open ended liquid scheme). Mahindra Liquid Fund, more known as a cash management tool for investors, can be a great alternative to a regular savings bank account. The scheme had touched an AUM of Rs 1000 Cr on July 31, 2016, that is in its first month of launch. ”
Annexure 1: Mahindra Mutual Fund Kar Bachat Yojana
(an Open Ended ELSS Scheme with a 3 year lock-in period)
Lock-in Feature: This feature endeavors to protect investments from impact of short term market volatility. Lock-in of only 3 years! Other traditional tax savings options may have longer holding periods.
*The Scheme does not guarantee or assure any returns.
**Assuming investor is in the highest tax bracket and uses the entire Rs 1.5 lac limit available under Section 80C of Income Tax Act 1961 for investing in only Mahindra Mutual Fund Kar Bachat Yojana. The tax benefit is calculated on the basis of currently applicable marginal tax rate of 30.9% (for income up to Rs 1 crore) applicable for the current highest tax bracket. Please consult your financial /tax advisor before investing.
Available Plans for subscription by investors: Ø Regular Ø Direct
Available Options: Ø Dividend Ø Growth (Default)
Available Sub-options/ Facilities: Ø Dividend Payout
Minimum Application and Redemption Amount / Number of Units:
Maximum Application Amount: No Limit
b. Direct Debit mandate through select banks with whom AMC may have an arrangement, from time to time.
c. Post-Dated Cheques (PDCs).
d. National Automated Clearing House (NACH) Facility
Entry Load: Not applicable
Exit Load: Nil
Benchmark: Nifty 200
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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