Mirae Asset ELSS Tax Saver Fund

The fund invests minimum 80% of its total assets in equity and equity related securities of companies across industry sectors and market cap segments. The fund can also invest 0-20% of its total assets in money market instruments, debt securities and G-Secs etc.

The investment objective of the scheme is to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related instruments. The Scheme does not guarantee or assure any returns.

The fund may invest in diversified portfolio of strong growth companies at reasonable price across industry sectors. Fund has the flexibility to invest across market capitalization and in selecting investment opportunities within this theme. The fund has bottom-up approach to investment with focus on companies delivering visible and sustainable earning growth, and which are available at reasonable valuations. The fund follows Mirae Asset’s Equity investment philosophy of selecting businesses based on Large Market Opportunity, Sustainable Competitive Advantages, ROI and run by management with good Corporate Governance & thought leadership. The Fund Manager will try to have a large base of stocks in the portfolio to avoid concentration risk and liquidity risk

• Investors who want to save taxes under Section 80C of income tax act 1961
• Investors who aim for capital appreciation over a long investment horizon
• Investors who have twin objectives – achieving long term goals while saving taxes on investments made.
• Investors who can remain invested for minimum 3-5 years
• Investors with can tolerate moderately high risk for their investments

• Investors can save up to Rs 46,800* (those who are in 30% tax bracket) in Income Tax by investing in ELSS.
• Low investment amount – You can invest as low as Rs 500 in ELSS.
• Though ELSS returns are market linked, historical ELSS performance (10 year category average return at 14.96 as on 13th April 2023 (Source: Advisorkhoj) show higher return potential compared to assured returns of traditional 80C investment options like Public Provident Fund PPF, National Savings Certificate NSC and Tax Saver Fixed Deposit FDs etc.
• Historically, equity as an asset class has usually delivered higher returns over sufficiently long investment tenures
• Further, with a lock-in period of just 3 years, ELSS is the most liquid investment option compared to other 80C investment option. However, you can stay invested as long as you want after the stipulated lock-in of 3 years.
• ELSS is also more tax efficient than most 80C investment options. Long term capital gains of up to Rs 100,000 in ELSS Funds in a financial year, is tax exempt and taxed at 10% only thereafter.

• The Scheme has Regular Plan and Direct Plan with a common portfolio and separate NAVs. Investors should indicate the Plan for which the subscription is made by indicating the choice in the application form. Each of the above Regular and Direct Plan under the scheme will have the following Options - 1) Growth Option and 2) Dividend Option. Under the dividend Option, there will be only Dividend Payout option.
• On payment of dividend, the NAV of the units under Dividend option will fall to the extent of the dividend payout and applicable statutory levies, if any. It must be distinctly understood that the actual declaration of dividend and frequency thereof is at the sole discretion of Board of Directors of the Trustee Company.

With effect from this financial year (2020-21), dividends received from Mutual Funds are taxable in the hands of the investor. The dividend has to be added to the total income of the investor and taxed at the income tax rate applicable to the investor. TDS at the rate of 10% will be deducted by AMC, if the dividend from mutual funds exceeds Rs 5,000 in a financial year.

• Total Expense ratio or TER represents the annual fund operating expenses of a scheme, expressed as a percentage (%) of the fund’s daily net assets. All expenses of an AMC must be managed within the maximum limits of TER as per SEBI Mutual Fund Regulations.
• As per the current regulations, the TER allowed is 2.25% for the first Rs.500 Crores, 2.00% for the next Rs. 250Crores, 1.75% for the next Rs. 1250 Crores, 1.60% for the next Rs. 3000 Crores and 1.50% for next Rs. 5,000 Crores.
• On the next Rs. 40,000 Crores of the daily net assets, TER reduction of 0.05% for every increase of Rs 5,000 Crores of daily net assets or part thereof, on the next Rs. 40,000 Crores of the daily net assets. Balance of assets, the TER would be 1.05%.
• For example - An expense ratio of 2% per annum means that, each year 2% of the schemes’ total assets (AUM) can be used to cover operating expenses like administration, management, advertising and brokerage payment etc.

• By investing in this fund, investors can not only save up to Rs 46,800* in Income tax but also create wealth over sufficiently long investment tenures for meeting long term financial goals.

The fund’s returns are subject to market risk. The returns of the funds can be volatile and even negative depending on market conditions. Past performance of the fund may or may not be sustained in the future*.

*Assuming the investor has invested Rs. 1,50,000 under Section 80C. of the Income Tax Act, 1961 and investor falls under 30% income bracket under the old regime structure.