IDBI Mutual Fund: IDBI Tax Saving Fund..!


IDBI Mutual Fund recently announced the launch of IDBI Tax Saving Fund, an open ended equity linked savings scheme (ELSS) offering income tax benefits under section 80 C of the IT Act, 1961. The product is designed keeping in mind investors who are seeking capital appreciation as well as saving income tax through their investment. Investors not desiring tax benefits can also invest in the scheme as a medium to long term equity investment.

Highlights of IDBI Tax Saving Fund..!

• • An open ended equity linked savings scheme (ELSS) offering income tax benefits u / s 80C of the Income Tax Act, 1961

• • Full deduction for investment up to Rs. 1 lakh from taxable income with tax savings of up toRs. 30,900 (for highest tax bracket of 30 %)

• • Capital Gains and dividends under the scheme are tax-free

• • Units available at par (Rs.10/-) during the NFO

• • Facility for Systematic Investment Plan (SIP) and for Systematic Transfer Plan (STP)

• • Investment universe: at least 80% of the corpus will be invested in equity and equity related instruments

• • Benchmark – S&P BSE 200 Index

• • NFO Period: 20 August 2013 to 03 September 2013

Mr. V. Balasubramanian, Vice President and Fund Manager, IDBI Asset Management Ltd said, “We are happy to announce the launch of IDBI Tax Saving Fund. Investments, upto Rs. 1 lakh, made in the scheme will be eligible for benefits U/S 80C of the Income Tax Act, with the maximum benefit upto Rs. 30,900 in the highest tax bracket. (30%) We are launching the issue in August, 2013 so as to enable investors to choose for lumpsum investment during NFO, when units will be allotted at par, or /  alternatively plan their investment by way of SIP, in a phased manner, till March so as to enjoy full tax benefits. Apart from upfront Income Tax benefits, capital gains & dividend returns are also tax free under the IDBI Tax Saving Fund.”


The New Fund Offer (NFO) will open for subscription on 20 August 2013 & close on 03 September 2013.

The units will be available at par (Rs.10) during the NFO and at NAV related prices thereafter.

The IDBI Tax Saving Fund scheme will re-open for continuous sale from 17 September 2013.

The investment objective of the scheme is to provide investors with an opportunity for capital appreciation & income along with the benefit of income-tax deduction (under section 80C of the IT Act, 1961) on their investments. Investments in this scheme would be subject to a statutory lock-in period of 3 years from the date of allotment to be eligible for income-tax benefits under section section 80C.


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