• PAGE ONE
• INDEX
• HOME

HDFC MF to launch tax savings plan

Our Bureau

MUMBAI, Dec. 23

HDFC Mutual Fund (HDFCMF) is launching a tax savings scheme called HDFC Tax Plan-2000 structured as an equity linked savings scheme (ELSS) under Section 88 of the Income-Tax Act.

The scheme would perhaps have the shortest initial public offer (IPO) period of two days; it would open on December 26 and close on December 27. The scheme would reopen for the ongoing sale from January 2, 2001, onwards at the net asset value (NAV). The fund would not charge any load during IPO and three months period up to March 2001.

The scheme would invest up to 80 per cent of its assets in equities and up to 20 per cent in the corporate debt and money market instruments. The scheme offers two plans - dividend and growth. Under the dividend plan, the scheme may announce annual divid end.

The investments up to a maximum of Rs 10,000, eligible for tax rebate under Income-Tax Act, would be locked-in for a minimum of three year period. The withdrawal and facility for switch over to other HDFCMF schemes would be available after the initial lo ck-in period.