IDBI mutual fund launches IDBI tax saving fund

MUMBAI: IDBI Mutual Fund on Monday launched an open-ended equity-linked savings scheme (ELSS), 'IDBI tax saving fund', with an aim to provide capital appreciation to investors along with tax benefit.

The new offering which will be open for subscription from tomorrow, will close on September 3 and the scheme will re-open for continious sale from September 17.

"We feel this is the right time for equity investors to enter into the market as the valuations are attractive in many stocks following the recent market crash. Apart from capital appreciation, the new fund will also offer tax savings to the investors," IDBI Mutual Fund chief executive Debashish Mallick told reporters here.

He also said the fund house expects to garner around Rs 100 crore during the NFO period.

"We will majorly focus on retail investors for this new scheme," Mallick said.

When asked about the timing of launch, Mallick said equity funds tend to do well when valuations are at an attractive level as investors benefit in the long-run.

Talking on the distribution penetration, Mallick said the fund house is planning to increase the strength of its representative offices.

IDBI MF, promoted by public sector lender IDBI Bank, has a total AUM of around Rs 5,500 crore at the end of June quarter.