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.
Mahindra Mutual Fund Kar Bachat Yojana New Fund Offer prospectus can be downloaded from here.
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
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Is it possible to buy this MF online?
All Mutual funds can be purchased online. You can login to your MF account, go to MF section and click on New Fund offers and you would be able to purchase them online.
plz,sen d ur Auth Repr for an open dialogue with the aofesaid MF tomorrow.
If nobody invest in new funds how can anyone get the funds with 3 year track record? Has not any scheme which was new and somebody invested it, performed well in future? This is like no experience, no job But how will one get experience without getting a first job?
Its the risk investors take. Also many investors does not know there are better options, hence invest in such NFO’s.
pls elaborate on the kotak stock lending & borrowing mechanism (SLBM) whereby you can lend your stocks thru kotak SLBM & earn rent,dividend & appreciation on your stocks.minimum margin amount is Rs25000 & the offer period is from 19thaugust to 19th september2016.
Suresh jiii… i have got a doubt.. why cant we invest in these new schemes.. nav of 10rs.. lowest and if by luck it increases to 15 rs in 3 years.. a single investment of 10k would become 15k.. where as in established mf… say now nav is 25rs and after 3 years it becomes 30rs.. amount of 10k would become 12k only in 3 years..
If the NAV of this fund is Rs 10 and the companies invested by this mutual fund appreciated by Rs 15, means 50%. Assume existing fund also invested now where stock price appreciates by 50%, its NAV also would go by 50% right? So don’t think about low NAV Mutual fund schemes. It all matters in which company such MFs are investing and whether they are investing at right time or not
Respected Mr Suresh,
i m investing in mutual fund since oct 2016. my age is 37 years, previously i was not aware and not confidenet about investing in mutual Funds.
but luckily i got around your blog and after reading your posts i got some confidence to invest in mutual Fund. i would like to thank you from my deeper corner of heart for providing us a indepth knowledge in very very simple language.
now the main question?
i have started to invest 7000 per month through SIP From Oct -2014.
following are the funds in which i am investing:
1) IDFC premeir Equity fund-Growth (Regular) monthly sip Rs 2000
by today the total cost of investments are Rs 48,000 and the current Value is Rs 53,570.74
2) Birla Sunlife Frontline equity Fund-Growth monthly sip Rs 2000
by today the total cost of investments are Rs 48,000 and the current Value is Rs 54,760.39
3) ICICI Prudential dynamic Plan-Growth
by today the total cost of investments are Rs 48,000 and the current Value is Rs 54,159.95
4) ICICI Prudential Infrastructure Fund-Growth monthly SIP Rs 1000
by today the total cost of investments are Rs 24,000 and the current Value is Rs 25,583.27
i want to know whether i have selcted the right portfolio, should i quit any of the above fund.
i want to earn 2-3 crore in 10-15 years.
Please Suggest your kind words.
Dear Mr Ali,
It is not possible to created wealth of 2-3 Cr by investing INR 7000 per month in next 15 years. You can expect returns of 12-15 % per annum from MF. If you get higher returns then it is partly luck & partly your smartness.
To get 1 cr after 10 year how much I have to invest every month. Should I paid lump sum every year or do sip every month.
Very good and clear response. Thanks.