Union KBC Mutual Fund launched Union KBC Taxsaver

Union KBC Mutual Fund has launched the Union KBC Taxsaver, an equitylinked savings scheme. This is the second offering from the fund house in equity funds space.

THE SCHEME

The scheme is an open-ended scheme that aims to generate income and longterm capital appreciation by investing in a portfolio of equity and equity-related securities. Under section 80C of the Income-Tax Act, investors can claim tax deductions on investments up to Rs 1 lakh in the scheme.

The investments in this scheme are locked in for three years from the date of allotment of units. The fund can invest 80% to 100% of the money in equity and equity-related instruments and up to 20% in debt and money market instruments.

The investment team shall follow an active strategy to manage the assets of the fund keeping in mind the composition and performance of the benchmark.

The BSE 100, a fairly diversified index, will be the benchmark for the scheme. Ashish Ranawade will be the fund manager. A combination of bottom-up and top-down approaches will be used while making investments for the scheme. The minimum investment in the scheme is Rs 500 and in multiples of Rs 500. It also offers the systematic investment plan option.

There is no entry load or exit load. First-time mutual fund investors investing more than Rs 10,000 will be charged Rs 150 towards transaction cost. Investments of over Rs 10,000 will also attract a transaction charge of Rs 100. You can choose between the growth and dividend options. The NFO closes on December 9 and the scheme will re-open for investment on December 23.

WHY INVEST

You can consider them scheme if you are looking to invest in equities with a long-term view and want capital appreciation along with tax-savings.

WHY NOT INVEST
The scheme invests in equities and that adds to the risk of an investor’s portfolio. The scheme invests in equities and that adds to the risk in investor’s portfolio. Also, there are other tax saving schemes with proven track record.