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IIFL Mutual Fund has launched first-ever tax saver index fund scheme that will track ‘ELSS Nifty 50 Tax Saver Index’.
The passive fund will have the twin advantage of tax saving under 80C and the potential benefit from diversified exposure to the equity markets. Being an Index Fund, it aims to have a portfolio that mirrors the Nifty 50 Index, which comprises large cap Indian companies. It is also relatively low cost compared to actively managed schemes.
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Parijat Garg, Fund Manager, IIFL AMC, said the Nifty 50 accounts for about 50 per cent of India’s market cap and taking exposure to the Nifty companies through a passive fund is an opportunity for investors to harness the growth potential of equities and reduce tax outgo besides gaining diversified exposure.
Due to its passive approach, the fund eliminates the selection and behavioural biases that impact investment decision-making, he said.
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