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Bajaj Finserv ELSS Tax Saver Fund Files Draft With SEBI

05 November 20243 mins read by Angel One
Bajaj Finserv’s ELSS Tax Saver Fund offers tax benefits under Section 80C, high equity allocation (80%-100%), and a 3-year lock-in, targeting long-term growth.
Bajaj Finserv ELSS Tax Saver Fund Files Draft With SEBI
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Bajaj Finserv Asset Management Ltd. recently filed a draft with the Securities and Exchange Board of India (SEBI) to launch the Bajaj Finserv ELSS Tax Saver Fund. This is an equity-linked savings scheme (ELSS) designed to generate long-term capital appreciation. Offering tax benefits under Section 80C of the Income Tax Act, 1961, this scheme aligns with Bajaj’s mission to cater to investors seeking wealth growth through equity investments.

Key Features

Bajaj Finserv ELSS Tax Saver Fund will be an open-ended fund, implying investors can buy or redeem units anytime post a three-year statutory lock-in period. The scheme’s performance will benchmark against the BSE 500 Total Return Index (TRI), allowing for a diversified investment approach across various sectors and companies of different market capitalizations.

Investment Structure

According to the draft filed, the fund will allocate:

  • 80%-100% of its portfolio to equity and equity-related securities, ensuring high growth potential.
  • Up to 20% in debt and money market instruments for liquidity and stability.

Additionally, investors can invest with a minimum Rs.500 for both lump-sum and SIP (Systematic Investment Plan) options.

Risk & Returns

The scheme’s high allocation towards equity securities positions it with a high-risk profile, making it suitable for investors with a longer-term horizon and an appetite for market volatility. It is crucial for prospective investors to consult with financial advisors to ensure suitability, given the high-risk nature.

Plans & Options

Investors can choose between:

  • Growth or Income Distribution cum Capital Withdrawal (IDCW) options.
  • Regular or Direct plans, with different NAVs (Net Asset Values).

The scheme’s flexibility makes it appealing to investors looking for customized investment plans within the tax-saving bracket.

Conclusion: The Bajaj Finserv ELSS Tax Saver Fund represents an interesting addition to the tax-saving investment options, especially for those keen on capital appreciation and equity exposure. While the scheme’s structure presents potential growth, investors should consider the inherent risks tied to equity-linked savings schemes.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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