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Who Launches India's First Passive Tax-Saving Fund?
A)
SBI Mutual Fund
B)
IIFL Mutual Fund
C)
L&T Mutual Fund
D)
Kotak Mutual Fund

Correct Answer : Option (B) - IIFL Mutual Fund


IIFL Mutual Fund has launched the new fund offering of IIFL ELSS Nifty 50 Tax Saver Index Fund (IN50).
 
It is the first passively managed tax-saving scheme (also known as Equity-Linked Savings Scheme, or ELSS) to be launched after the capital market regulator, Securities and Exchange Board of India (SEBI), allowed fund houses to launch such passive funds on May 23, 2022.
 
What is on offer?
 
IN50 is an equity fund. It will invest in all stocks in- and in the same proportion as they lie in- the Nifty50 index. It will aim to mimic Nifty 50 index’s returns. This also means IN50’s fund manager will not take cash calls; it won’t substantially hold cash, like some other tax saver schemes do.
 
Being a tax saver fund, all investments in this scheme up to Rs 1.5 lakh, along with other eligible contributions, will fetch you deduction under Section 80C of the Income Tax Act. Like all contributions to ELSS, the units of this scheme too will be locked in for three years from the date of allotment..

Source : Moneycontrol

Published On : December 5, 2022
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