Lotus India AMC has come out with an Equity Linked Savings Scheme (ELSS) or what is commonly referred to as a tax-saving fund.
The Lotus India Tax Plan is an open-ended equity fund that will invest across market cap and sectors utilizing bottom up approach. The allocation of the corpus to equity will be in the 80-100 per cent range while debt, money market and cash is in the 0-20 per cent range.
To aim of the fund is to generate long-term capital growth from a diversified portfolio of predominantly equity and equity related investments. The fund seeks to restrict the number of stocks between 20 and 50.
Investments in these funds qualify for a deduction under Section 80C of the Income Tax Act and have a lock-in period of three years.
The minimum amount required to be invested in the fund is Rs 500. The Systematic Investment Plan (SIP) is available only during the ongoing offer.
Unit cost during NFO: Rs 10
Type of fund: Open-ended ELSS
Options: Growth, Dividend payout, Dividend reinvestment
Minimum investment: Rs 500
Benchmark: BSE 100
Exit load: Nil
Entry load: 2.5 per cent (for a one-time investment and SIP)
Fund manager: Sanjay Kumar Chhabaria
Offer opened: November 20, 2006
Offer closes: December 5, 2006