IIFL Introduces Indias First Passive Tax-Saver Fund IIFL ELSS Nifty 50 Tax Saver Index Fund

Dec 03, 2022

IIFL Mutual Fund has launched – IIFL ELSS Nifty 50 Tax Saver Index Fund

It is an open-ended Passive Equity Linked Saving Scheme with a statutory lock-in period of 3 years and tax benefit, replicating/tracking the Nifty 50 index.

Accordingly, the investment objective of scheme 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.

There is no assurance or guarantee that the investment objective of the Scheme would be achieved.

Under normal circumstances, IIFL ELSS Nifty 50 Tax Saver Index Fund will hold an allocation of 95% to 100% of its assets in Equity instruments covered by Nifty 50 Index and 0% to 5% in Debt and money market instruments.

As per the Scheme Information Document, IIFL ELSS Nifty 50 Tax Saver Index Fund will adopt a passive investment strategy. The scheme will invest in stocks comprising the Nifty 50 Index in the same proportion as in the Index with the objective of achieving returns equivalent to the Total Returns Index of Nifty 50 Index by minimizing the performance difference between the benchmark index and the scheme. The Total Returns Index is an index that reflects the returns on the index from index gain/ loss plus dividend payments by the constituent stocks.

The fund manager’s endeavour would be to rebalance the portfolio in order to replicate the Index; however, there may be a short period where the constituents of the portfolio may differ from that of the Underlying Index.

IIFL ELSS Nifty 50 Tax Saver Index Fund’s performance will be benchmarked against Nifty 50 TRI Index.

The scheme will be managed by Mr Parijat Garg.

The NFO opens for subscription on December 01, 2022 and closes on December 21, 2022. The schemes will reopen for continuous sale and repurchase on January 02, 2023.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 500/- and in multiples of any amount thereafter. 

The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.

[Read: IIFL ELSS Nifty 50 Tax Saver Index Fund: Is it Worth Investing in India’s First Passive ELSS?]