Comments
Mirae Asset Financial Services, an NBFC lending against mutual fund units, will now accept tax-saver units free from the lock-in period as a pledge.
The tax-saver schemes, which are preferred by retail investors due to exemptions enjoyed under Section 80C, come with a three-year lock-in period. Hence the lender did not have any recourse to redeem during the lock-in period if the borrower failed to repay the dues.
Also read: HDFC Bank stock climbs nearly 2% post Q2 earnings
Based on the demand from both clients and distribution partners, it has now enabled lien marking of lock-in free units of tax saver schemes for availing loans.
Krishna Kanhaiya, CEO, Mirae Asset Financial Services (India) said tax-saver fund category is predominantly popular among retail investors as they not only save tax by investing in these funds but also create wealth for them.
Also read: Markets rebound after three days of fall on optimism in global equities
Among 35 schemes that have reached the three-year mark, an impressive 23 have nearly doubled investors’ wealth in the past three years, he said.
As of last month, overall ELSS AUM was of ₹1.84 lakh crore, out of which retail investors contribute the highest of about 85 per cent of ₹1.57 lakh crore.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.