The Hindu Business Line : Reliance MF plans to launch tax-saver fund

The proposed Reliance Tax Saver Fund will be a diversified equity scheme, aimed at securing long-term capital appreciation from a basket of mostly equity and equity-related instruments. Investments in it will have to be locked in for three years under the existing regulations governing tax-planning funds.

Investors, who will be required to put in a minimum amount of Rs 500, will be able to choose between four options. These are growth, dividend payout, dividend reinvestment and bonus. The BSE 100 index has been chosen as the benchmark in this case.

An investment in the scheme will help unit holders to avail themselves of benefits under clause (xvii) of Sub-section (2) of Section 88 of the I-T Act, it is pointed out. Investment polices will be in line with SEBI (Mutual Funds) Regulations, 1996 and rules and guidelines for ELSS - 1992 scheme, the offer document sent to SEBI for approval has mentioned.

Reliance Tax Saver's asset allocation will be tilted towards equity; under normal circumstances, at least 80 per cent of its exposure will be to stocks bearing a relatively high-risk profile. The fund manager will follow an active investment strategy, depending on the opportunities that may be available at various points.

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