Saturday, 15 December 2012

SBI Tax Advantage Fund Series II – SBI Mutual Fund NFO

SBI Mutual Fund issues SBI Tax Advantage Fund Series II. The New Fund is a 10 year close ended mutual fund. The NFO will start to issue on 22nd December, 2012 and will be ended on 21st January, 2012. This mutual fund is classified under ELSS (Equity Linked Saving Scheme).

The investment objective of the SBI Tax Advantage Fund Series II is to generate capital appreciation over a period of ten years by investing predominantly in equities & equity-related instruments of companies across large, mid and small market capitalization, along with income tax benefit.

The New Fund is in both Dividend option and growth option. Under

dividend option there is no dividend reinvestment option. The investor can choose only dividend payout option or growth option.

After 3 year lock in period you may redeem the SBI Tax Advantage Fund Series II. There is no switch in option after the NFO period. Only on  the NFO period Switch in is available. But after the lock in period of 3 years the investor can switch out from the scheme.

Tax benefit: - As an ELSS fund the investor can avail income tax exemption under section 80 C of the income tax act.

Asset allocation: - 80 % to 100% accumulated money will be invested in medium to high risk equities and equity related investments. Only 0% to 20% investments will be made in low and medium risk debt and money market securities.

Minimum investment: The minimum investment amount is Rs. 500 and in multiples of Rs. 500 their off.

Exit load and Entry Load: There is no exit load or entry load the NFO

SBI Tax Advantage Fund Series II. SIP option is also not available for the scheme.

The mutual fund is suitable for the investors those who are looking for long term investment over 3 years or more and also wish to invest in securities with growth option.

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