Navi Mutual Fund on Tuesday (February 14, 2024) announced the launch of one of India’s lowest-cost tax-saving ELSS index fund. Named ‘Navi ELSS Tax Saver Nifty 50 Index Fund’, it is a passive ELSS tax-saver fund.
In a statement, Navi MF said that the New Fund Offer (NFO) for Navi ELSS Tax Saver Nifty 50 Index Fund will commence on February 14th, 2023 and conclude on February 28th, 2023.
The launch of Navi ELSS Tax Saver Nifty 50 Index Fund comes after markets regulator SEBI recently issued guidelines to allow Mutual Fund houses in India with an existing active tax-saver ELSS scheme to launch a passive ELSS scheme post restricting inflows in the active scheme.
“With the launch of the Navi ELSS Tax Saver Nifty 50 Index Fund, Navi will be the first Mutual Fund in India, to take advantage of these guidelines,” the statement said.
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The index ELSS fund will have an expense ratio of 0.12% under the direct plan, making it the lowest cost tax-saving ELSS fund in India, the AMC said.
ELSS funds also have one of the lowest lock-in periods of only 3 years amongst various tax-saving instruments available under Section 80C of the Income Tax Act. Further, the Navi MF said that there will be no exit load on withdrawal post the expiry of the lock-in period.
The minimum amount required to start investing in this ELSS index fund is as low as Rs. 500.
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Commenting on the launch of the new ELSS index fund, Sachin Bansal, Co-founder of Navi Group, said, “With the Navi ELSS Tax Saver Nifty 50 Index Fund, Navi Mutual Fund is launching a product that is focused on solving a key customer pain point. Bringing the simplicity of passive investing to the domain of tax-saving investments at an affordable price point is yet another example of our customer-centricity.”
(Disclaimer: The above content is for information purposes only, based on a press release by Navi Mutual Fund. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing)