VR Logo

Union Tax Saver Scheme


Union KBC is launching an open-ended tax saving scheme. This will be the 37th entrant to the category of open-ended tax saving funds.

Investment Objective
The investment objective is to generate income and long term capital appreciation by investing substantially in equities. The scheme will allocate between 80-100% in equities and upto 20% in debt. The fund manager will follow a combination of bottom up and top down approach in his investment strategy.

Impact of DTC
If the Direct Tax Code comes into effect from March 31, 2012, Equity Linked Savings Scheme will not offer tax benefits and would get converted into diversified equity funds. However, investments made before March 31, 2011 will be locked in for 3 years as these would have received tax deduction in this financial year.

Fund Manager
Mr. Ashish Ranawade will be the Fund Manager of this scheme. He has a Bachelor of Engineering (Electronics) and Master of Management Studies (Finance) degrees. With over 16 years of experience in investments, he has previously worked with UTI MF and ING Investment management (India) Limited as head of PMS with responsibilities of portfolio performance and business strategy. He also manages Union KBC Equity Fund.

Returns from Similar Funds
Currently, there are 36 tax saving schemes in existence and the 3-year returns of top 10 schemes are:

Schemes  3-Year Return (%)
Canara Robeco Equity Tax Saver 32
Fidelity Tax Advantage 27.88
Franklin India Taxshield 26.66
HDFC LT Advantage 25.51
HDFC Taxsaver 27.43
ICICI Prudential Tax Plan 31.82
ING Tax Savings 25.31
Religare Tax Plan 28.01
Sahara Tax Gain 26.4
Taurus Tax Shield 25.41

Fund House
Union KBC Mutual Fund launched its first fund in June this year. It has come out with an equity fund and a fixed income fund so far. Its assets as on September 30, 2011, stand at Rs. 870 Crores.

Basic Details:
NFO Opens: November 8, 2011 NFO Closes: December 9, 2011 NFO Price: Rs.10/- Options: Growth and Dividend Minimum Application Amount: Rs.500/- and in multiples of Rs.500/- thereafter Lock in period: 3 years Exit Load: NIL Benchmark: BSE 100 Index Fund Manager: Mr. Ashish Ranawade