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Our Bureau

Mumbai , Nov. 15

HSBC Asset Management (India) Pvt Ltd is launching `HSBC Tax Saver Equity Fund (HTSEF),' an open-ended Equity Linked Savings Scheme, on November 20. The fund closes on December 15.

The fund seeks to provide long-term capital appreciation through a diversified portfolio of equity and equity-related instruments of companies across sectors and industries.

The minimum amount to be invested in the fund is Rs 500. The investment shall be locked in for a period of three years from the date of allotment. The fund offers investor growth and dividend payout options. HTSEF would be made available in 165 cities across India.

"The fund will invest with no capitalisation bias but our focus will be on sectors like Banking, IT, Auto and Construction and Infrastructure companies. The comfort factor in this brand is its capacity to take away the risk attached to direct investments in equity markets," said Mr Sanjay Prakash, CEO, HSBC Asset Management (India) Pvt Ltd.

TSEF offers benefits under Section 80C of the Income Tax Act. This provides taxpayers a deduction from taxable income of up to Rs 1 lakh per year on investments.

"Equity-linked savings schemes have more potential for capital appreciation. Dividends pocketed are tax-free and the lock-in period tends to minimise volatility. Historically, such schemes have provided better returns as compared to other tax saving instruments over periods greater than one year," said Mr Mihir Vora, Head of Fund Management - Equities, HSBC Asset Management (India) Pvt Ltd.

CAPITAL PROTECTION SCHEME

The asset management company is also plans to launch a Capital Protection Scheme soon.

"We will launch the fund once we get necessary approvals from SEBI," Mr Prakash said. HSBC is also looking at the prospect of floating a Real Estate Mutual Fund in India.

HSBC launched its initial set of products in November 2002. HSBC Mutual Fund had assets in excess of Rs 9,691.28 crore spread across 19 schemes.

More Stories on : New Fund Offer | Mutual Funds

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HSBC launches tax saver equity fund

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