Samco ELSS Tax Saver Fund

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Introducing Samco ELSS Tax Saver Fund

Samco ELSS Tax Saver Fund aims to outperform benchmark by investing predominantly in high potential mid sized and small sized companies while you avail tax benefits under Section 80C of the Income Tax Act.

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Source: NGen, as on September 30, 2022

Out of ₹ 150,000 Cr, ₹ 100,000 Cr

is in LargeCaps

Even with complete flexibility on market cap allocations, LargeCaps make up 72% (i.e. ₹ 100,000 Cr) of the total AUM (i.e. ₹ 150,000 Cr) of the ELSS category while MidCaps and SmallCaps constitute just 28% of the total.

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8% higher returns generated

in Nifty MidSmallCap 400

On a rolling returns comparison, a 3-year average rolling return of Nifty MidSmallCap 400 was 48.91%, which is 8% higher than a 3-year average rolling return delivered by Nifty 500, which was 40.92%.

Source: NSE since April 01, 2005. Please note that above indicate 3 years rolling return for NIFTY MidSmallCap 400 and NIFTY 500 index from April 01 2005 till October 13 2022. The above returns are of index and do not indicate returns of any scheme. Past performance may or may not sustain in future. MidCap stocks carry a higher risk of market fluctuations and are also prone to higher liquidity risks than LargeCap stocks. Investments in mutual funds should not be construed as a guarantee of any minimum returns & there is no capital protection guarantee.

Over a 3-year period

volatility smoothens significantly

While the volatility in MidCaps may be higher in a shorter horizon of 1 year, it definitely smoothes out when these same stocks are held for a longer time horizon of 3 years, making them suitable for an ELSS scheme with 3-year lock-in period.

Source: NSE, Samco Mutual Fund internal research.
Note - Past performance does not guarantee future results.

Key highlights of Samco ELSS

Tax Saver Fund

Higher potential to generate alpha due to a predominantly MidCap and SmallCap portfolio
Higher risks and volatility which can efficiently be managed due to a 3-year lock-in
Qualifies for Tax Deduction under Section 80C of Income Tax Act, 1961

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Scheme Features

NFO Period

November 15, 2022 to December 16, 2022

Type of scheme

An Open-ended Equity Linked Saving Scheme with a statutory lock-in of 3 years and tax benefit

Investment Objective

The investment objective of the scheme is to generate long-term capital appreciation through investments made predominantly in equity and equity related instruments. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

Asset Allocation Pattern

Instruments	Indicative allocations (% of net assets)		Risk Profile
	Minimum	Maximum
Equity and Equity related instruments	80%	100%	High to Very High
Debt and Money Market instruments	0%	20%	Low to Medium

Equity related instruments shall mean equities, cumulative convertible preference shares and fully convertible debentures and bonds of companies. Investment may also be made in partly convertible issues of debentures and bonds including those issued on rights basis subject to the condition that, as far as possible, the non-convertible portion of the debentures so acquired or subscribed, shall be disinvested within a period of 12 (twelve) months. All investments by the Scheme in equity shares and equity related instruments shall only be made provided such securities are listed or to be listed.

Benchmark Index

Nifty 500 Index TRI

Minimum Application Amount

₹ 500 and in multiples of ₹ 500/- thereafter

Entry Load

Not Applicable

Exit Load

Nil

Fund Manager

Ms.Nirali Bhansali

Fund Manager - Equity

FAQ’s

What is an Equity Linked Saving Scheme?

Equity Linked Saving Scheme (ELSS), also known as tax-saver fund, is an open ended Equity mutual fund scheme that invest primary in equity related products. However, these ELSS mutual funds have a three-year mandatory lock in term, which is the shortest lock in period if compared to all other products that are available under Section 80C of the Income Tax Act, 1961.

Who should invest in ELSS Tax Saver Fund?

What are things to consider before investing in ELSS Tax Saver Fund?

The following are the critical factors that must be considered by investors before they invest in ELSS Tax saver fund:

Investment horizon: The investor must have a three-year investment horizon to contemplate investing in ELSS funds. To limit market volatility, the equity exposure of ELSS funds necessitates a longer investment horizon.
Returns: ELSS funds do not give guaranteed returns as they are wholly dependent on the performance of the underlying securities.

Are ELSS Tax Saver Fund subject to any lock in period?

Yes, ELSS has a lock-in period of three years. This means one cannot withdraw their money before the said tenure ends. However, ELSS has the shortest lock-in period as compared to other similar tax-saving investments currently such as 5-year Fixed Deposits (five years), National Savings Certificate (five years), Public Provident Fund (15 years), etc.

What are the benefits of ELSS Tax Saver Fund?

Dual benefit: ELSS funds are the only type of funds in the Indian market, that give the dual benefit of a tax rebate and wealth appreciation. Under Section 80C of the Income Tax Act, 1961, who fall in the higher income tax brackets, can save up to Rs 46,800 in a year if they invest Rs 1.5 lakh per annum in ELSS and are in the 30% income tax bracket. However, Investor will get a maximum tax deduction of Rs 1.5 lakh per year in ELSS under Section 80C even if they invest more than this amount.
Shortest lock-in: Currently, ELSS has the shortest lock-in period of three years under Section 80C of Income Tax Act 1961.
Potentially higher returns: Unlike ELSS where return is market linked, other 80C investments like PPF or FDs are fixed income products. ELSS has the potential to generate significantly higher wealth in a medium to long-term investment horizon.

Is returns from ELSS tax free?

The redemption proceeds of ELSS are not entirely tax-free. The long-term capital gains of up to Rs 1,00,000 a year are tax-free, and any gains above this limit attract a long-term capital gains tax at the rate of 10% plus applicable cess and surcharge.

What is the objective of SAMCO ELSS Tax Saver Fund?

Where will SAMCO ELSS Tax Saver Fund invest?

The Fund’s strategy will endeavor to have a predominantly higher allocation to mid and small cap companies which will be selected through focusing on the fundamentals of the business, the industry structure, the quality of management, sensitivity to economic factors, the financial strength of the company and the key earnings drivers. The scheme will invest in about 30-40 scripts to ensure adequate diversification and reduced risk.

Who can Invest in SAMCO ELSS Tax Saver Fund?

The following persons (subject to, wherever relevant, purchase of Units of mutual funds, being permitted under respective constitutions, and relevant statutory regulations) are eligible and may apply for Subscription to the Units of the Scheme:

Resident adult individuals
Hindu Undivided Family (HUF) through Karta;
Minor (as the first and the sole holder only) through a natural guardian (i.e. father or mother, as the case may be) or a court appointed legal guardian.
Partnership Firms including limited liability partnership firms;
Proprietorship in the name of the sole proprietor;
Companies, Bodies Corporate, Public Sector Undertakings (PSUs), Association of Persons (AOP) or Bodies of Individuals (BOI) and societies registered under the Societies Registration Act, 1860(so long as the purchase of Units is permitted under the respective constitutions);
Banks (including Co-operative Banks and Regional Rural Banks) and Financial Institutions;
Religious and Charitable Trusts, Wakfs or endowments of private trusts (subject to receipt of necessary approvals as "Public Securities" as required) and Private trusts authorised to invest in mutual fund schemes under their trust deeds;
Non-Resident Indians (NRIs) / Persons of Indian origin (PIOs)/ Overseas Citizen of India (OCI) residing abroad on repatriation basis or on non-repatriation basis;
Foreign Institutional Investors (FIIs) and their sub-accounts registered with SEBI on repatriation basis;
Army, Air Force, Navy and other para-military units and bodies created by such institutions;
Scientific and Industrial Research Organizations;
Multilateral Funding Agencies / Bodies Corporate incorporated outside India with the permission of Government of India / RBI;
Other schemes of Samco Mutual Fund or any other mutual fund subject to the conditions and limits prescribed by the SEBI (MF) Regulations;
Schemes of Alternative Investment Funds;
Trustee, AMC or Sponsor or their associates may subscribe to Units under the Scheme;
Qualified Foreign Investor (QFI)
Such other person as maybe decided by the AMC from time to time.

The above list of persons in category 4 to 18 are not eligible for tax benefits under Section 80 C of the Income-tax Act, 1961 but are entitled to subscribe to units.

What is the minimum investment amount for SAMCO ELSS Tax Saver Fund?

The minimum amount for application for an investor will be Rs. 500.

What are the entry/exit load on SAMCO ELSS Tax Saver Fund?

There is Nil entry/exit load on Samco ELSS Tax Saver Fund.

What is the benchmark of SAMCO ELSS Tax Saver Fund?

The Scheme performance would be benchmarked against Nifty 500 Index TRI