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 Fund | 42.68 | -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.
