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Money Today-Plexus Management evaluates the new IDFC Tax Advantage (ELSS) Fund. It is better to invest in a fund that has earned enough to reach a high NAV and thus ensures dividends for the period that you are locked in.

Money Today-Plexus Management new fund evaluation
IDFC Tax Advantage (ELSS) Fund

FUND FACTS
Offer open: Till 17 December

Scheme type: 3-year closed-ended tax planning equity

Minimum investment: Rs 500; unit price: Rs 10

Loads: Entry load: 2.25%; Exit load: Nil

Options: Growth and dividend (payout & reinvestment)

Investor grievances: Sunil Aryamane. Tel: 022-66511022; Fax: 022-22074395; E-mail: sunil.aryamane@idfcmf.com

FUND STATS
Objective: To provide long-term capital growth from a diversified portfolio of equity and equity-related securities. The fund will follow Sebi guidelines for ELSS.

Benchmark: BSE 200

Fund manager: Ajay Bodke

Asset allocation: 80-100% Equity & equity-related securities | 0-20% Debt & money market instruments | 0-20% Securitised debt instruments
Comparable existing schemes:

Fund Name NAV* (Rs)1-year (%)3-year (%)
Principal Personal Tax Saver Fund42.68
-61.65
0.59
Magnum Tax Gain Scheme
22.69 -57.75
-3.25
*NAV as on 2 December;. Source: NAVIndia

 

FUND PROGNOSIS
Idea distiller: IDFC does not have a tax plan as yet. As the last three months of a financial year see a lot of people rushing to invest in tax-saving schemes, it is an ideal time for IDFC to push an ELSS.

Fund house report: IDFC AMC manages assets worth Rs 8,686 crore across 78 schemes (as on 30 November).
Returns profile: 4/5 | Risk profile: 4/5

Fund manager’s report: Performance of fund manager
Returns profile: 4/5 | Risk profile: 4/5

Scheme DNA: Four fundamentals of the fund scheme
Unique idea: Low | Returns possibility: High | Risk: High | Operability/complexity: Low

INVESTOR TAKEAWAYS
Who should apply: Invest in this fund only if you want to go in for a low-cost NFO rather than an existing scheme with a higher NAV.

Comments: It is better to invest in a fund that has earned enough to reach a high NAV and thus ensures dividends for the period that you are locked in, or has a fund manager who has excelled in managing assets across all cycles of the market.