DSPML has come out with an Equity Linked Savings Scheme (ELSS) or what is commonly referred to as a tax-saving fund.
Investment in this fund qualifies for a deduction under Section 80C of the Income Tax Act and has a lock-in period of three years.
Being an open-ended equity fund, it will invest across sectors and industries. The allocation of the corpus to equity will be in the 80-100 per cent range while debt and money market investments in the 0-20 per cent range. Out of the equity portion, up to 20 per cent will be permitted in ADRs, GDRs and foreign securities.
The entry load is 2.25 per cent for one-time investments. For a SIP, it drops down to 1 per cent. There is no exit load.
Unit cost during NFO: Rs 10
Type of fund: ELSS
Offer opened: November 27, 2006
Offer closes: December 21, 2006
Options: Dividend payout, Dividend reinvestment, Growth
Minimum investment: Rs 500
Benchmark: S&P CNX 500
Fund manager: Anup Maheshwari
Entry load: 2.25 per cent for investments below Rs 5 crore / 1 per cent for a SIP
Exit load: Nil