Mutual Fund News : NJ Mutual Fund Launches NJ ELSS Tax Saver Scheme

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NJ Mutual Fund has launched – NJ ELSS Tax Saver Scheme.

It is an open-ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit.

Accordingly, the investment objective of the Scheme is to generate income and long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related instruments. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.

Under normal circumstances, NJ ELSS Tax Saver Scheme will hold an allocation of 80% to 100% of its assets in Equity & Equity related instruments and 0% to 20% in Debt and money market instruments.

As per the Scheme Information Document, NJ ELSS Tax Saver Scheme aims to generate long term capital appreciation by investing in equity and equity related instruments across market capitalizations. The scheme selects securities using a rule based active approach based on proprietary protocols. These protocols are derived based on analysis of various market, macroeconomic and fundamental factors.

Allocation to equity stocks is decided on the basis of market and macroeconomic variables including equity market valuation, interest rates, Gsec yields and money supply. Equity stocks are selected and weighted using factor-based rules that aim to achieve a mix of attributes considered supportive of long-term performance within risk constraints. A factor can be thought of as any attribute that is important in explaining the risk and / or return of a security. Portfolios can be created on the basis of a single factor or a combination of two or more factors.

NJ ELSS Tax Saver Scheme’s performance will be benchmarked against NIFTY 500 TRI

The scheme will be managed by Mr Viral Shah

The NFO opens for subscription on March 13, 2023, and closes on June 09, 2023. The schemes will reopen for continuous sale and repurchase Within five Business Days from the date of allotment.

The fund’s NAV is priced at Rs 10- per unit during the NFO period. The minimum subscription amount is Rs 500/- and in multiples of any amount thereafter.

The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.