Mahindra Mutual Fund Kar Bachat Yojana NFO – Should you invest?
Mahindra Mutual fund (New Fund house), is launching a new ELSS mutual fund scheme. Mahindra Mutual Fund Kar Bachat Yojana New Fund offer would open for subscription on 22nd August, 2016. Mahindra MF Kar Bachat Yojana fund is an ELSS scheme where one can save income tax u/s 80C. What are the features of Mahindra Mutual Fund Kar Bachat Yojana NFO? Should you invest in Mahindra Mutual Fund Kar Bachat Yojana NFO?
Also Read: Best Mutual Funds for Beginners in India
Features of Mahindra Mutual Fund Kar Bachat Yojana NFO
- This is open ended ELSS (Tax Saving) Mutual fund scheme.
- Scheme opens for subscription on 22-Aug-2016
- Scheme closes for subscription on 7-Oct-2016. It would reopen for further subscription from 19-Oct-2016.
- This scheme is available in both regular and direct plans.
- Like any other MF scheme, each such plan offers both dividend and growth options. Under the dividend option, only dividend payout would be done.
- Minimum investment is Rs 500.
- NAV of the NFO is Rs 10 per unit now during initial subscription.
- Tax benefits available u/s 80C upto Rs 1.5 Lakhs of investment in this scheme.
- This scheme has lock-in period of 3 years. Means you cannot redeem / sell the mutual fund units before 3 years.
- No exit load to be paid after 3 year lock-in period.
- This scheme is available for lump sum and SIP options.
- This scheme is classified as moderately high risk scheme.
- This scheme benchmark is NIFTY200.
- Scheme expense ratio is estimated up to 2.5% of the total assets on any day.
What is the investment objective of this Mahindra MF Kar Bachat Yojana NFO?
The investment objective of this scheme is to generate long term capital appreciation through a diversified portfolio of equity and equity related instruments. It does not guarantee any minimum returns. This scheme invests 80% to 100% in equity & equity related instruments and 0% to 20% in debt & debt related instruments.
What are the tax benefits available for this ELSS NFO?
The amount invested in this scheme has lock-in period of 3 years. The amount is eligible for tax saving u/s 80C upto Rs 1.5 Lakhs per annum. The maturity amount is tax free as it is classified under equity funds. Means no tax needs to be paid on ELSS fund returns after 3 years.
Can NRI invest in this ELSS scheme?
NRI can invest in this mutual fund ELSS scheme. However, they should mandatory fill FATCA and CRS forms while investing.
Should you invest in Mahindra Mutual Fund Kar Bachat Yojana NFO?
There are several top ELSS / Tax Saving Mutual fund schemes which has been performing well. Now you might think whether we should invest in Mahindra MF Kar Bachat Yojana ELSS NFO? You have a choice to take a risk and invest. If you make mistake, you cannot redeem immediately as it has lock-in period of 3 years. My view is do not experiment with new schemes. Invest in top ELSS funds which are already doing good. In future, if you feel such funds are performing well, you can consider them.
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Mahindra Mutual Fund Kar Bachat Yojana NFO