SBI Tax Advantage Fund-Series II
Face Value: The face value of one unit of the SBI Tax Advantage Fund – Series II is Rs. 10 in New Fund Offer period.
Opening and Closing date: The New Fund Offer of SBI Tax Advantage Fund – Series II opened on 22nd December, 2011 and will be closed on 21st March, 2012.
Minimum Subscription: The minimum required investment of the Tax Saving ELSS is Rs. 500 and multiples of Rs. 500 thereafter
Lock in period: The SBI Tax Advantage Fund – Series II mutual fund is 10 years close ended fund with a lock in period of 3 years.
Benefits of the SBI Tax saving fund: The First and foremost benefit of SBI Tax Advantage Fund – Series II is Tax Saving under section 80C which allows a deduction from income upto and investment of Rs. 100000. Capital appreciation and Tax free return are other two benefits of the newly launched SBI Tax Advantage Fund.
Investment options: The SBI Tax Advantage Fund – Series II is available in Growth option and dividend payout option.
Asset Allocation: The investment allocation of the new SBI Tax advantage fund is 80-100% in Equity and Equity related instruments with high risk profile and 0-20% debt and money market instrument with low & medium risk profile.
Entry load and Exit Load: There is no indication of entry load and exit load for the mutual fund. The entry is only on the new fund offer period and as a close ended fund there is no any exit load also.
SBI Tax Advantage Fund - Series II is an ELSS scheme which allows Tax exemption under section 80C of Income tax act and those who invest Rs. 100000 in ELSS or any other tax saving investment can get a tax exemption of Rs. 10300 in 10% Tax Slab, Rs. 20600 in 20% Tax Slab and Rs. 30900 in 30% Tax slab. And the ELSS is the only tax saving investment which has the lowest lock in period of 3 years. The capital gain and dividend from the ELSS are tax free in the hands of investor, but the pooled money is invested in equities and so the risk profile is very high.
New Fund Offer (NFO) available in the market
List of tax saving mutual funds (ELSS) & Fund houses