ELSS Tax Saver Fund NFO by Bajaj Finserv: All You Need to Know

Bajaj Finserv Mutual Fund is introducing the ELSS Tax Saver Fund, an open-ended equity-linked savings scheme (ELSS) designed to offer long-term capital appreciation along with tax-saving benefits. This scheme will provide investors an opportunity to participate in equity markets while availing tax deductions under Section 80C of the Income Tax Act, 1961.

The New Fund Offer (NFO) will be available for subscription starting 24th December 2024 and will close on 22nd January 2025. Post-NFO, the scheme will reopen for continuous sale and repurchase within five business days after allotment.

Key Features of the Scheme

• Investment Objective

The primary aim of the Bajaj Finserv ELSS Tax Saver Fund is to generate long-term capital appreciation through a diversified portfolio of equity and equity-related securities. Additionally, it offers tax deductions on investments under Section 80C, making it an attractive option for tax-saving purposes.

• Benchmark

The scheme is benchmarked against the BSE 500 Total Return Index (TRI), a comprehensive index representing the performance of a broad range of equities.

• Fund Management Team

The scheme will be managed by seasoned professionals, including Nimesh Chandan, Sorbh Gupta, and Siddharth Chaudhary, known for their expertise in equity fund management.

• Minimum Investment Requirements

1. 1. • SIP: Minimum of ₹500 per instalment
      • Lumpsum: ₹500 minimum investment
      • Additional Investments: ₹500 minimum

• Lock-in Period

ELSS schemes come with a statutory lock-in period of three years, ensuring a disciplined investment approach while promoting long-term growth.

Understanding ELSS and Tax Benefits

Equity Linked Savings Schemes (ELSS) are mutual funds that allow investors to save taxes under Section 80C. An investor can claim deductions of up to ₹1.5 lakh in a financial year, making it a dual-purpose financial instrument offering tax savings and potential market-linked returns. However, as these funds invest primarily in equities, they are subject to market risk, which should be considered by investors.

Key Dates to Remember

• NFO Open Date: December 24, 2024
• NFO Close Date: January 22,  2025
• Reopening for Sale and Redemption: Within 5 business days post-allotment

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.