What is the lock-in period in ELSS Fund

{
"url":"/mutual-funds/equity-funds/bajaj-finserv-elss-tax-saver-fund",
"nav_id":"TFRGG",
"debt": "Debt/Cash 100%",
"equity": "Equity 0%",
"TFRGG": {
"nav": "10000",
"date": "31-10-2024",
"since": {
"bajajflexi": "7.19",
"bajajsmall": "7.33",
"bajajnifty": "7.24"
},
"6_month_ago": {
"bajajflexi": "7.31",
"bajajsmall": "7.43",
"bajajnifty": "7.54"
}
},
"TFDGG": {
"nav": "10001",
"date": "31-10-2024",
"since": {
"bajajflexi": "7.38",
"bajajsmall": "7.33",
"bajajnifty": "7.24"
},
"6_month_ago": {
"bajajflexi": "7.50",
"bajajsmall": "7.43",
"bajajnifty": "7.54"
}
}
}

Fund Card

Bajaj Finserv ELSS Tax Saver Fund

Equity

Regular Growth

NAV	Risk Type
₹-- as on 3-12-2024	Very High

Invest Now

Summary Note

This is an equity fund with BSE 500 Total Return Index (TRI) as its benchmark. The risk level for this fund is categorized as Very High.

Summary Dynamic Card

Category of Scheme

ELSS fund

Benchmark Index

BSE 500 Total Return Index (TRI)

Inception Date

29-01-2025

Benefits

Benefits of investing in Bajaj Finserv ELSS Tax Saver Fund

Tax efficiency

Long-term capital gains from equity shares and equity-oriented mutual funds are tax-free up to Rs. 1.25 lakh per year, with excess gains taxed at flat 12.5%.

Long-term oriented stock selection process

Identifying stocks through fundamental analysis, ensuring fair valuation, and adopting a buy-and-hold strategy by investing in businesses with strong growth potential.

InQuBe

Our inhouse InQuBe investment philosophy brings informational, quantitative & behavioural edge to the portfolio.

Who Should Invest/Fund Manager

Who should invest in Bajaj Finserv ELSS Tax Saver Fund?

Salaried individuals: Seeking tax benefits and better post-tax returns over long term.
First-time investors: Exploring equity investments with a tax-saving incentive.
Long-term investors: Aiming for wealth creation through disciplined investing.

Fund Manager

Fund Managers

Nimesh Chandan

Chief Investment Officer

View in detail

Sorbh Gupta

Head – Equity

View in detail

Siddharth Chaudhary

Head – Fixed Income

View in detail

Scheme Fund Details

Fund Details

Investment Objective

To generate long term capital appreciation from a diversified portfolio of predominantly equity and equity related securities while offering deduction on such investment made in the scheme under Section 80C of the Income Tax Act, 1961.
However, there is no assurance that the investment objective of the Scheme will be achieved.

Minimum Investment

Minimum Application Amount

Lumpsum: Rs. 500/- and in multiples of Rs. 500/- thereafter.
SIP: Rs. 500/- and in multiples of Rs. 500/- thereafter (minimum 6 instalments)

Load Structure

Load Structure/Lock-In Period

Entry load - Nil

Exit Load - Nil

The Trustee / AMC reserves the right to change the load structure any time in the future if they so deem fit on a prospective basis. The investor is requested to check the prevailing load structure of the scheme before investing.

Options

Options/Sub-Option

Bajaj Finserv ELSS Tax Saver Fund – Direct Plan
Bajaj Finserv ELSS Tax Saver Fund – Regular Plan
Growth option
Income Distribution cum Capital Withdrawal (IDCW) option with Payout of IDCW sub-option.
The scheme will have a common portfolio across various Plans/Options/Sub-options.
Investors are requested to note that Growth and IDCW Option (Payout) under Regular and Direct Plans will have different NAVs. These NAVs will be separately declared.
Bajaj Finserv ELSS Tax Saver Fund - Direct Plan is only for investors who purchase /subscribe units in a Scheme directly with the Fund.
Default option will be Growth Option.
Default sub-option will be Payout of IDCW sub-option.
For detailed disclosure on default plans and options, kindly refer SAI.

custom-one

Opening NAV

Offer for Units of Rs. 10 each for cash during the New Fund Offer and Continuous offer for Units at NAV based prices

Product Label and Riskometer

Bajaj Finserv ELSS Tax Saver Fund
An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit

This product is suitable for investors who are seeking*:

Wealth creation over long term
To invest predominantly in equity and equity related instruments with tax benefit under Section 80C of Income Tax Act, 1961

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them

Scheme Documents

Documents

Presentation

Application

Key Information Document (KIM)

Scheme Information Document (SID)

Statement of Additional Information (SAI)

Overview

ELSS Fund Overview

Equity-Linked Saving Scheme (ELSS) is a unique investment option that aims for potential wealth creation while also offering tax benefits under the provisions of Section 80C of the Income Tax Act, 1961. ELSS primarily invests the major corpus of money (minimum 80% of the portfolio) in equities and equity-related securities.
There is no minimum allocation required in each market capitalization, so the fund manager is free to plan the flexi cap fund investment portfolio as per their growth strategy, market knowledge and insights.

Furthermore, these funds have the shortest lock-in period among all tax-saving investment options. The mandatory lock-in period for ELSS is just three years.

In recent years, many salaried investors have opted for ELSS funds for tax benefits. After the lock-in period is over, the units can be redeemed or switched, or you can also continue your investments for long term wealth creation.

Investments in ELSS funds are eligible for a tax deduction of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act. So basically, the amount you invest in ELSS can be subtracted from your total taxable income, thereby reducing your tax liability.

Bajaj Finserv ELSS Tax Saver Fund - Regular & Direct Plans

You can invest in the Bajaj Finserv ELSS Tax Saver Fund through two plans:

Direct Plan: Here, you choose to invest on your own without the help of a mutual fund distributor. Since there’s no intermediary, you pay a lower expense ratio as there are no commission costs involved.
Regular Plan: Here, you invest in the fund of your choice through a distributor who guides you through the process. However, as you involve a distributor, there is a commission fee involved. This makes the expense ratio higher than in the direct plan.

How to invest in Bajaj Finserv ELSS Tax Saver Fund

To invest in Bajaj Finserv ELSS Tax Saver Fund, you can choose between two different approaches.

Offline mode: In this mode, you fill out an application form and submit it to your distributor or an AMC of your choice.
Online mode: In this mode, you invest directly with your Demat account. Another way to invest is through the Bajaj Finserv AMC website. Here, you can create an online account and select the Bajaj Finserv ELSS Tax Saver Fund to invest through SIP or lumpsum. invest now.

Taxation on Bajaj Finserv ELSS Tax Saver Fund

As Bajaj Finserv ELSS Tax Saver Fund is an equity mutual fund, it follows the tax rules that apply to all equity-oriented schemes. The tax you pay depends on how long you have stayed invested.

Short-term capital gains (STCG):
If you redeem your units within a year of purchase, any gains are classified as short-term and taxed at 20%, along with applicable surcharge and cess.
Lon-term capital gains (STCG):
If you redeem units after a tear or more, your gains are considered long-term. In this scenario, gains up to Rs. 1.25 lakh in a financial year are exempt from taxation. Any gains above this limit are taxed at 12.5%, along with applicable surcharge and cess.

FAQ

Frequently Asked Questions

ELSS Funds carry a lock-in period of 3 years during which investors cannot redeem their invested amount

Investors can claim a maximum exemption of Rs. 1,50,000 by investing in ELSS Funds under sec 80C of Income Tax Act, 1961. The exemption is available for investors under the old tax regime. Exemptions are subject to prevailing tax laws.

Bottom-up stock selection: Identifying stocks through fundamental company analysis
Ensure appropriate valuation: Evaluation of fair pricing for long-term investment
Buy and hold growth: Investment in businesses with strong future potential

Bajaj Finserv ELSS Tax Saver Fund is a mutual fund that invests in equities with long-term growth potential along with tax benefits under section 80C of the old regime of the Income Tax Act, 1961.

You can invest in Bajaj Finserv ELSS Tax Saver Fund through both online and offline channels. You can invest independently or with the help of a distributor.

ELSS funds are a type of mutual fund. The suitability of mutual funds, including ELSS funds, depends on your goals, risk appetite and preferences.

No, ELSS funds are not tax-free – they are subject to capital gains tax. However, investments of up to Rs. 1.5 lakh in a financial year in ELSS funds can be deducted from your taxable income under Section 80C of the old regime of the Income Tax Act, 9161. ELSS funds have a lock-in period of three years, during which no withdrawals are allowed. Following that, capital gains on withdrawn units are subject to long-term capital gains tax. Capital gains exceeding Rs. 1.25 lakh in a financial year are taxed at 12.5% plus applicable surcharge and cess.

Like all equity investments, ELSS Funds carry market risk and can experience high volatility, especially in the short term. Additionally, they come with a three-year lock-in period, which can make them unsuitable for those who need liquidity in the near term.

Investments of up to Rs. 1.5 lakh in ELSS funds each financial year are eligible for tax deduction under Section 80C of the Income Tax Act, 1961, as per the old tax regime. This means you can claim the tax benefit every financial year, provided you invest in ELSS (or other eligible options) during that year.

Yes, redemptions are allowed in the ELSS Tax Saver Fund after the lock-in period ends for your investment.

No, ELSS funds are subject to market risk and performance/returns are not guaranteed; they depend upon market conditions.

You can use tools such as CAGR calculators and XIRR calculators to estimate the returns on your ELSS funds. You can also refer to AMFI and other reputable websites, along with your AMC’s website, for latest returns data.

Past performance may or may not be sustained in future.

The NAV of a fund can fluctuate depending on market conditions and is calculated at the end of each trading day. The latest NAV is displayed on the top left of this page.

To access information about the current AUM of Bajaj Finserv ELSS Tax Saver Fund, you can download the latest Factsheet from the Bajaj Finserv AMC website.

The fund’s risk classification is based on the portfolio composition as well as SEBI guidelines and is subject to periodic review. Refer to the Riskometer above on this scheme page and latest scheme-related documents for the current risk level.

The fund’s top holdings are selected by the fund manager and may change over time based on market outlook and research insights. To view the most up-to-date holdings, please check the latest Factsheet or Scheme Page.

Asset allocation of the Bajaj Finserv Large Cap Fund is as per the Scheme Information Document (SID). For the current allocation across equity and other instruments, please refer to the most recent Factsheet or the Scheme Page

The Total Expense Ratio (TER) may differ for Direct and Regular plans and can change over time. For the most current expense ratio, please refer to the latest Factsheet or the Total Expense Ratio section.