- Date : 19/09/2023
- Read: 3 mins
Zerodha Tax Saver (ELSS) Nifty LargeMidcap 250 Index Fund enables tax savings of up to Rs. 1.5 lakhs under the Income Tax Act's Section 80C in the old tax regime.
Zerodha Tax Saver (ELSS) Nifty LargeMidcap 250 Index Fund benefits, Zerodha Tax Saver (ELSS) Nifty LargeMidcap 250 Index Fund features
Tax-saving mutual funds are an investment tool that mutual fund companies offer. They fall under a type of equity-linked savings scheme (ELSS). In India, every year, investments up to Rs. 1.5 Lakhs made in the ELSS are eligible for tax deduction under Section 80C of the Income Tax Act if filed under the old tax regime.
Let's discuss the Zerodha Tax Saver (ELSS) Nifty LargeMidcap 250 Index Fund.
Highlights:
-
Zerodha Tax Saver (ELSS) Nifty LargeMidcap 250 Index Fund will have a face value of Rs. 10.
-
It is an ELSS fund with 95% asset allocation in equities and equity-related securities.
-
This Nifty LargeMidcap 250 Index Fund carries high risk and suits long-term capital growth.
Zerodha Tax Saver (ELSS) Nifty LargeMidcap 250 Index Fund
Zerodha Fund House filed a draft schema information document (SID) to the Securities and Exchange Board of India (SEBI) for its Zerodha Tax Saver (ELSS) Nifty LargeMidcap 250 Index Fund. This ELSS is an open-ended passive scheme with a three-year statutory lock-in period and offers only a direct plan with a growth option.
Once approved, this scheme will be available to investors at a face value of Rs. 10.
Also Read: Invest in these mutual funds for higher returns
Zerodha Tax Saver (ELSS) Nifty LargeMidcap 250 Index Fund benefits and features
1. Monetary benefits
The scheme's benefits include tax exemptions under the old tax regime. Additionally, as it is a direct plan, no transaction fees will be levied.
2. Asset allocation
The scheme will invest in the stocks in the same proportion equivalent to the Total Return Index of the Nifty LargeMidcap 250 Index. It will have an equity-to-debt ratio of 95% to 5%.
3. Risk and returns
The ELSS carries a very high risk and is most suitable for investors seeking long-term capital growth. National Stock Exchange (NSE) Indices show that as of January 2023, Nifty LargeMidcap 250 grew over 15% with a return risk of 0.65 in 10 years.
4. Investment and redemption
Investment options include daily, weekly, fortnightly, monthly, quarterly, half-yearly, and yearly SIPs with a minimum value of Rs. 500, along with top-up options. Redemption will be possible after the three-year lock-in period.
Also Read: All you need to know about Zerodha's mutual fund schemes
Conclusion
Zerodha Tax Saver (ELSS) Nifty LargeMidcap 250 Index Fund offers an attractive opportunity to secure long-term capital growth and tax benefits. While the scheme carries a high risk, it will likely grow steadily.
Find the latest articles on mutual funds here.
Disclaimer: This article is intended for informational purposes only. It should not be construed as investment, tax, or legal advice.
