Indiabulls Mutual Fund, announced an NFO that opened for subscriptions on 21st September 2017. The subscription for this Indiabulls NFO closes on 20th December 2017. The NFO is called Indiabulls Tax Savings Fund. As the name suggests, it is an ELSS fund.

NFO NameIndiabulls Tax Savings Fund
NFO Launch Date21 September 2017
Last Date for Application20 December 2017
Minimum Investment Amount₹500
Fund TypeELSS Fund
Risk LevelModerately High

Indiabulls Mutual Fund

Indiabulls with their ELSS fund offering aim to achieve long-term growth by investing in equity and equity-linked securities. Indiabulls Tax Savings Fund being an ELSS fund does not restrict itself to a certain size of company. The fund manager of this fund can choose to invest in large-cap, mid-cap, or small-cap funds based on their discretion. Learn more about ELSS funds.

Indiabulls allows for STP options to invest in this fund too. Using STP, you can transfer a fixed amount into this fund at regular intervals to avoid market timing risk. STP is an excellent way to manage market risk. Unlike other open-ended funds though, you cannot transfer out of this fund for 3 years from the date of investment. This is so because of the mandatory 3-year lock-in period that ELSS mutual funds come with.

After the completion of the 3-year lock-in period, STP is available should an investor want to do so.

Invest in Indiabulls Tax Savings Fund

If you want to invest in this Indiabulls NFO, you have to follow the steps below.

  1. Log in to your Groww account. If you are a new user,  sign up first – it is completely online and takes 2-3 working days.
  2. Decide the amount you would like to invest in Indiabulls Tax Savings Fund.
  3. Email Groww support on support@groww.in with a request or call/Whatsapp on 9108800604.

Indiabulls Tax Saver NFO: Category

As suggested by the name of the fund, this fund is an ELSS (Equity Linked Savings Scheme) mutual fund.

This means, that the fund provides investors with a tax benefit of ₹1.5 lakh. Depending on the tax-slab you belong to, you could save up to ₹45,000 per annum in taxes.

This, of course, means that your investment will be locked-in for 3 years.

It must be noted here that the tax benefit received will only be for the financial year you invest in. For avail the same benefit next year, you will have to make a fresh investment of ₹1.5 lakh.

The benefits received are a part of tax benefits under section 80C. Understand all about ELSS mutual funds.

Indiabulls NFO: Index

Indiabulls Tax Savings Fund will be indexed against S&P BSE 500 Index. BSE 500 index represents nearly 93% of the total market capitalization of the Indian market. It covers all 20 major sectors or industries and is a good indicator the health of the Indian economy.

For this Indiabulls NFO to be called a good mutual fund, it would have to consistently beat this index.

Fund Managers

Malay Shah

Malay Shah is one of the two fund managers of Indiabulls Tax Savings Fund. At present, he is a fund manager to an astounding 10 mutual funds. Some of those names are Indiabulls Income Fund, Indiabulls Liquid Fund, Indiabulls Short Term Fund, Indiabulls Value Discovery Fund, and more.

Prior to this, he has worked with Peerless Funds Management Co. Ltd. and with Derivium Capital.

Sumit Bhatnagar

Sumit Bhatnagar is the second fund manager of this Indiabulls NFO. He manages other funds like Indiabulls Bluechip Fund, Indiabulls Arbitrage Fund, and more.

Before joining Indiabulls, Sumit Bhatnagar has worked with SEBI.

Minimum Investment

The minimum investment in this fund is ₹500 for both SIP and lump sum.

Other Options

If you have made full use of the benefits available under section 80C, then it does not make sense to invest more in it.

If you want similar returns without the lock-in period, you can look at the top multi-cap funds.

Happy investing!