Sundaram Mutual Fund has launched a new close ended scheme named "Sundaram Long Term Tax Micro Cap Tax Advantages Fund Series III". Sundaram Long Term Tax Advantages Fund is a tax-saving, equity-oriented scheme offering tax benefits of up to Rs 1.5 lakh under section 80C of the Income-Tax Act.
Investment in Equity Linked Saving Schemes (ELSS) gives you tax benefits apart from capital appreciation.
Here are 5 important things to know:
1. The scheme subscription is open from August 8, 2016 to November 11, 2016. The NFO is kept open for 3 months as per 2005 ELSS notification. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit.
2. The minimum application amount is Rs 5,000. The minimum investment for both Regular and Direct Plan is Rs 500 and multiples of Rs 500 thereafter.
3. An investor can redeem or switch-out after the lock-in period of 3 years from the date of allotment. The minimum amount of redemtion would be Rs 500 or 50 units or account balance whichever is lower.
4. The investment objective of the scheme is to generate capital appreciation over a period of ten years by predominantly investing in equity and equity-related instruments of companies that can be termed as micro-cap and from income tax benefit available.
5. The fund is benchmarked against Nifty Small Cap 100. S Krishnakumar & Dwijendra Srivastava are the fund managers.
There is no guarantee or assurance that the investment objective of the scheme will be achieved. There is also no guarantee of capital or return either by the mutual fund or by the sponsor or by the asset management Company.
Investors should note that investment in mutual funds are subject market risk which means that returns will depend on the performance of the equities.