HDFC TaxSaver (G)

Performance

HDFC Mutual Fund is managed by HDFC Asset Management Company Ltd. and was established as a trust on 8 June 2000. The sponsors of the fund house are Standard Life Investments Ltd. and Housing Development Finance Corporation Limited (HDFC). The company is headquartered in Mumbai and offers mutual fund schemes across various asset classes - equity, debt, liquid, ETFs (Exchange Traded Funds), FoFs (Fund of Funds), etc.

The HDFC TaxSaver-Growth Plan is an equity-linked savings scheme (ELSS) that invests mainly in equity and its related securities. The scheme comes with a 3-year statutory lock-in period and offers tax benefits to its investors. The growth option in this plan will entitle investors to receive returns at the end of the scheme period.

Investment Objective:

To produce income and capital appreciation for the investor through investments in equity and its related securities.

Key Features:

Investment amount for HDFC TaxSaver Plan:

Asset Allocation for HDFC TaxSaver Plan:

Who can invest in HDFC TaxSaver Plan:

The following persons/entities are eligible to apply for subscription to the units of HDFC TaxSaver Plan:

• Adult individuals residing in India
• Hindu Undivided Family through Karta
• Minors through a legal guardian or parent
• Persons of Indian Origin (PIO)/Non-Resident Indians (NRIs), on repatriation or non-repatriation basis
• Universities and educational institutions
• Religious and Charitable Trusts, Wakfs or endowments of private trusts
• SEBI registered Foreign Portfolio Investor
• Limited Liability Partnerships and Partnership firms
• Association of Persons or Body of Individuals
• Corporate bodies and companies registered in India
• Army, Navy, Air Force, and other paramilitary funds
• Proprietorship in the name of the sole proprietor
• Financial institutions and banks (including Regional Rural Banks and Co-operative Banks)
• Scientific and Industrial Research Organisations
• International Multilateral Agencies approved by the RBI and Government of India
• Mutual fund schemes registered with SEBI (Securities and Exchange Board of India)
• Pensions/Gratuity/Provident Fund to a permissible extent
• AMC/Trustee or Sponsor or their associates

NAV Disclosure and Benchmark for HDFC TaxSaver Plan:

The Net Asset Value (NAV) per unit of the scheme will be calculated by dividing the scheme’s net assets by the number of outstanding units under the scheme on the date of valuation. The scheme’s NAV will be computed and disclosed at the end of every working day. The NAVs will be calculated up to 3 decimals.

The NAV of the mutual fund will be updated by the fund house on its website - www.hdfcfund.com and also on the website of AMFI at www.amfiindia.com on every working day by 9:00 p.m. The NAVs will also be sent for publication to at least 2 newspapers that are circulated daily.

Liquidity: Being an open-ended scheme, the units of the scheme can be sold/redeemed/redemption on every working day at prevailing NAV prices.

Benchmark: Nifty 500 Index

Fund Manager:

Mr. Vinay R Kulkarni and Mr. Rakesh Vyas

Mr. Vinay R Kulkarni has been managing the scheme for 11 years and 5 months while Mr. Rakesh Vyas has been managing the scheme since 5 years and 11 months. Mr. Kulkarni has an overall experience of 29 years in equity research while Mr. Vyas has 11 years of experience in the same field.

Investment Restrictions on HDFC TaxSaver Plan:

The following investment restrictions apply to the HDFC TaxSaver Plan as laid down by the Securities and Exchange Board of India (SEBI):

• The scheme can buy and sell securities based on deliveries and in all cases of purchase and sale, the securities have to be delivered by the scheme.
• Only dematerialised mode is permitted for dealing with transactions relating to government securities.
• The mutual fund is not permitted to own above 10% of any firm’s paid-up capital carrying voting rights.
• The scheme is not allowed to invest above 10% of its NAV in debt securities that have been issued by a single issuer and rated above the investment grade by a credit rating agency. This limitation will not be applicable to investments in government securities, treasury bills, and CBLO (Collateralised Borrowing and Lending Obligation).
• The scheme cannot make investments in - any unlisted security of a group company or associate of the sponsor, any security issued by private placement, and any listed securities of sponsor’s group company which is more than 25% of the net assets.
• The scheme cannot invest above 5% of its NAV in equity and its related securities that are unlisted.
• The scheme is not permitted to park funds in short-term bank deposits who have made investments in the scheme.
• The scheme is not applicable to park above 15% of its net assets in short-term deposits of all scheduled commercial banks. The limit can, however, be increased to 20% if the Trustee approves.
• All the above investment restrictions will apply only during the time of investment.

Dividend Policy of HDFC TaxSaver Plan:

Dividends will be declared and distributed by the Trustee depending on the availability of distributable surplus. The dividends will only be paid out to unitholders who have opted for this option and whose names appear on the register of the unitholders. The dividend payments will be made through a cheque or can be transferred directly into the bank account of the unitholder.

The dividend option will reduce the NAV of the unitholders by the declared dividend amount.

Other Facilities offered by the HDFC TaxSaver Plan:

The HDFC TaxSaver Plan offers the below facilities to investors:

• Systematic Investment Plan (SIP)
• Systematic Withdrawal Plan (SWP)
• Systematic Transfer Plan (STP)
• One Time Mandate (OTM) Facility
• HDFC Swing Systematic Transfer Plan
• Dividend Transfer Plan Facility
• Systematic Withdrawal Advantage Plan (SWAP)
• HDFC Flexindex Plan
• Switching Option
• Facility to buy or sell units through the stock exchange

Why you should invest in HDFC TaxSaver Plan:

• Tax benefits - The HDFC TaxSaver Plan offers investors tax benefits under Section 80C of the Income Tax Act, 1861. The scheme comes with a 3 year statutory lock-in period which means that the amount will stay invested for at least 3 years which will help in capital growth.
• Special products - The scheme offers many facilities to its investors such as HDFC Swing Systematic Transfer plan, HDFC Flexindex Plan, etc. The HDFC Swing Systematic Transfer Plan allows investors holding units in non-demat form to transfer some amount at regular intervals from a particular open-ended scheme to the growth option of another scheme of HDFC Mutual Fund.
• Professional management - Both the fund managers of the HDFC TaxSaver Plan have over 10 years of experience in managing investments so you can rest assured that your investment will fetch optimal returns.
• Offers various investment options - The HDFC TaxSaver Plan offers both the growth option and dividend option to suit the needs of different investors. Investors who wish to receive regular income can opt for the dividend option while investors who wish to grow their investments over a long-term can opt for the growth option.

GST rate of 18% applicable for all financial services effective July 1, 2017.